If you are new to Forex trading you may consider day trading but beware of the fact that day traders ALWAYS lose for the following reason:
All short-term price volatility is random
There are countless millions of traders each day that trade trillions of dollars worth of currency and to say that you can measure what they will do in a few hours or a day is the biggest myth of currency trading.
You may say that you have seen forex trading systems that claim profits and what they do is claim and NEVER produce a real track record.
You normally get the following:
1. Outrageous Claims
Advertising copy pure and simple, with no substantiation – designed to appeal to the greed and naivety of the buyer.
2. A Hypothetical Track Record
Let me explain what this is, for those of you who don't know:
It's a hypothetical track record done in hindsight KNOWING the closing prices! How hard is that?
Anyone can do it and there not worth the paper they're written on. The fact so many traders don't question them or don't ask for a real track record, means they lose and wonder why.
Anyone can make money knowing the closing prices but in Forex Trading you don't get that luxury – its what makes forex trading so hard.
The reason you don't get a real time day trading track record is simple – day trading DOESN'T work.
If it did you would see a day trader with a real track record but of course if you try and find one you're in for a long search.
Day Traders don't make money – PERIOD.
If you want to make money with forex technical analysis you need to trade in time frames where the data can help you get the odds on your side and this means normally data of a few weeks minimum, not a few hours.
Think about it – if you have random volatility that can and do take prices anywhere in a day, its impossible to apply any technical tools to it. The tools maybe good but the data is unreliable and that's why day traders lose.
The proof is a real time track record and you wont get one in day trading – try asking one of the vendors who try and sell day trading systems for one and get ready for a long search.
Day trading does not work and never has and it's one of the biggest myths of trading that forex traders fall for – dont fall into the trap or you will lose to.