Forex scalping is a method of trying to take many small profits and build up big consistent profits over time, with low risk. Here we will look at the best forex scalping systems and how to day trade for profit…
I have been looking for the best forex scalping system since I first started trading and still haven’t even found one that makes money! Today, you see lots of them advertising big gains – but there is a problem and it’s the risk warning below:
“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.
So all the day trading records you see aren’t real dollars, there paper dollars made on paper knowing exactly what the prices did! This really should not be presented a track record as a child could do it.
So now we know all the systems advertise track records that are not real, why doesn’t someone break the mould and publish one – say, 2 or 3 years supported by broker account statements – or why doesn’t the vendor trade it for real?
Well the answer is that forex scalping is based upon flawed logic and is doomed to fail long term.
Just like the punter playing roulette in the casino as you never can get the odds in your favor.
If you can’t get the odds on your side you won’t win.
In day trading, all daily volatility is random and takes prices anywhere – so how can you key off support or resistance levels? You can’t, you may as well flip a coin.
Think about this …
In all corners of the globe, there are traders like me and you – all with our own opinions skills and emotions at work and countless millions of us make the price you see on your computer screen, so how can you tell what this vast mass of forex traders will do in a few hours? You can’t.
You do here scalpers talk about the science of human behavior and all need to do is know the law of it and you can win – great theory but no one has achieved it and if of course there was a scientific theory, then we would all know the price in advance and there would be no market.
These systems feed on greed and naivety and marketing companies know this.
So they write some nice copy of how you can make X million for doing nothing put up a track record that is totally unbelievable and based on sand i.e a paper simulation, not proven or tested or anything, just a simulation and wait for people to buy and they do.
The company gets a system sale and the FX trader a loss.
You can make a lot of money in forex trading but not by using a forex scalping system. Leave them to the lazy traders and get yourself some sound forex education, on trading long term forex trends for profit and you can enjoy currency trading success.
By: Kelly Price