FOREX day trading is more popular than ever and online you can get a huge amount of e-books and FOREX day trading systems, which promise you regular income and huge capital gains.
Here we will look at how to separate out the myth and see the reality in relation to day trading and how to win in the markets.

Myth – Day Traders Have Profitable Real Time Track Records

Reality

FOREX day traders don’t make money and the proof is that of all the e-books and systems for sale, you never see a real track record of real profits made in the market over the longer term.
What you do get is a hypothetical track record, but these are not worth the paper their written on.

Why?

Quite simply because their devised in hindsight – knowing the closing prices.
Well, if we all knew tomorrow’s prices today we would all be millionaires!
Hypothetical track records are simply made up and have no bearing on how successful you will be trading the system.

Myth – Day traders trade their own systems

Reality

Most FOREX day trading systems are sold by failed brokers, or marketing people who have the sense not to trade the system themselves.
They don’t need to, as they make money anyway.
They can simply rely on writing some marketing copy to appeal to the greed of investors, then sell them the system.
They get their fee and the FOREX trader gets the loses – fair deal for them!

Myth – You can predict short term volatility

Reality

This is of course why day trading does not work.
Trillions of dollars are traded each day by millions of participants and to say you can predict where prices will go in a matter of hours is laughable.
The only people who take notice of support and resistance are losing day traders.
Volatility can and does, take prices anywhere in a day and levels of resistance and support are constantly broken handing day traders loses.

Myth – Day trading restricts losses and runs profits

Reality

As day traders work with meaningless data they can’t win of course but many think that day trading restricts risk, but it actually creates it.
Losses are small, as they are near daily support or resistance ( which get broken frequently as the data is meaningless) which simply ensures they get stopped out with a loss albeit a small one.
Running profits?

Forget this with day trading!

They are looking to scalp a few ticks or close positions out quickly.
The result is they can never run profits to cover the huge amount of small losses they get.
The biggest myth of currency trading is that day traders make money they don’t.
They lose and system sellers laugh all the way to the bank.

The proof of the above is:

If you ever ask a day trader for a long term track record of real profits – Try it and see if you get one.

If you want FOREX education avoid day trading and learn FOREX Trading methods that actually give you a chance of winning.
Day trading is simply one of the best ways to lose your money in online FOREX trading, so don’t fall for the myth understand the reality.

In this article, we will look at common Forex myths most traders believe which cause losses. If you want to avoid the 95% of losers and enter the elite 5% of traders who make big Forex gains, then this article can lead you to Forex trading success.

First lets look at the biggest Forex myth which new traders believe.

Cheap Forex Robots Work

For a cost of under $200.00 the sellers of these robots claim you can make a huge regular income with no effort. So a lifelong income for just the cost of a good night out – doesn’t quite add up does it? It looks to good to be true and it is these systems are so cheap, because they don’t make money not becuase they do! Avoid these get rich quick systems or you will lose.

Currency Trading Requires Hard Work

This is a common myth and while hard work can help you in many jobs, it doesn’t help you succeed in Forex. Traders who think the more effort they put in and the more they trade, the better the chances are of making money – are wrong. These traders make a lot of effort and take low odds trades and lose. In addition, they try and be to clever which leads me to my next point.

The Best Forex trading Systems are Simple

The trader who thinks, that complex strategies work better than simple ones is wrong – Why? Because simple systems work best and the reason – if you make a system to complex, it will have to many elements to break.

You can Predict Currency Prices in Advance

Many traders think you can predict prices in advance with science and use systems based on science which include – Fibonnaci, Gann and Elliot Wave. If you try and predict Forex prices you will find, your predictions end up as accurate as your horoscope. Forget predication and simply trade the confirmation of price action. Sure you won’t win every trade but if you keep your losses small and run your profits, you will make huge gains.

Why You can Win at Forex

As you can see, successful currency trading requires only a simple system and in addition, you don’t need to work hard or have a college degree to win. If you have a simple system which trades the reality of price change, you cut your losses and run your profits, you can enjoy Forex trading success.

You have to make some effort and learn skills but anyone can learn the skills needed to win and for effort you need to put in the rewards can be life changing.

Successful currency trading looks easy, yet few succeed and 95% of all traders lose all their money and this is despite the fact that trading currencies successfully is a learned skill. The reason why so many traders lose is they believe conventional wisdom about successful trading but if you want to enjoy currency trading success don’t do what the majority do.

Let’s look 5 commonly held beliefs about currency trading which the majority believe and by believing these myths, they end up in the majority of losers.

1. It’s Easy to Make Money!

95% of traders lose, so its pretty obvious that making money in FX trading is not easy. The rewards of currency trading are huge and you wouldn’t expect it to be easy to make money however the good news is – everything about successful currency trading can be learned by anyone and for the effort you have to make, the rewards are enormous. Most new traders however believe they can make money with no effort and believe the myth of making money on autopilot with a cheap Forex robot.

2. Trusting Sure Fire Forex Robots

There are a huge number of laughable Forex robots which promise financial freedom for a hundred dollars or so and no effort is needed on your part! Who wouldn’t want a lifetime income, for the cost of a night at the bar? It looks to good to be true and is and anyone who buys these systems, soon losses their money.

3. Hard Work and Intelligence will Increase Your Odds of Trading Success

You won’t increase the odds of success in FX trading by working hard, your only judged on the money you make and that doesn’t mean hard work, it means -working smart and learning the right information. Also, the best currency trading strategies are always simple and anyone can learn one of these. Being clever can be a disadvantage because, clever people make their strategies to complex and if a system is to complex, it will have to many elements to break.

4. Believing Forex Markets can Be Predicted

Buy low sell high goes the conventional wisdom and you need to predict where prices go in advance but this is yet another dangerous myth to believe. You can’t predict lows or highs in advance and while many traders like to follow far out theories like – Gann, Elliot Wave and Fibonacci which all say markets move to science and can be predicted they can’t. Currency trading is an odds game, so you should trade the reality of price change and not try to predict price moves in advance; if you do try, your predictions will be about as accurate as your horoscope!

5. Market Timing is the Key to Success

You don’t need to buy the exact low to make money, You simply need to follow market action – and wait for confirmation of a trend change. Of course, if you do this you will miss the exact low or high but that’s impossible to predict anyway so trade with the odds on your side and don’t worry about the little bit of profit you have missed, focus on the big profit ahead of you. Forex trading is not about perfection and buying the exact turn, its about making money and that means waiting for moves to be confirmed and trading the odds.

Why You can Win at Forex Trading

From the above points, its obvious that you can win with a simple system, based upon trading price action which anyone can learn to do. If you want to become a Forex trader from home and make money, you can learn all you need to know in a few weeks and soon be making big profits in around 30 minutes a day.

This may seem odd as it’s an accepted wisdom, but if you try and apply it in your forex trading strategy you will lose money.

If you don’t realise why this is – read on and we will explain why.

Of course, the aim of all traders is to buy in at the bottom of trends and sell out at peaks – but it’s impossible to do and the way most forex traders do it means they lose.

The key to understanding why you can’t do it, is to realize that you have to predict in advance where prices will go or buy into a low or sell into a high and “hope” the levels hold.

Fact is you can’t predict where forex prices are likely to go and if you rely on hope then you shouldn’t be trading forex.

What you have to do is not predict but get confirmation of price momentum changes, above the level of support – BEFORE executing your forex trading signals.

A simple example will show you how to do this.

Many Forex traders watch a support level such as, Fibonacci level, pivot point etc, and as prices come to perceived support; they simply buy into it just above the level.

There logic is, they are in at a low “if” the level holds – of course the important word here is “if”.

Support lines, Fibonacci levels, pivot points break frequently, so if you try and buy into them just hoping they will hold you will buy the low will see you lose.

A better way to trade:

Is to use price momentum to check that support and resistance will hold – and then trade on confirmation.

Trading on confirmation gets the odds on your side trying to predict will see you lose it’s as simple as that.

So how do spot changes in price momentum?

Great indicators to use are the stochastic and relative Strength Index (RSI)

You simply watch for prices to move to support and then turn up supported by RSI or stochastic.

You won’t buy the bottom you will miss a good bit of the move, but by trading in this way you will get stopped out less and always trade with the odds – this means bigger forex profits longer term.

“Buy low sell high” is an accepted investment and many traders accept it at face value trade and lose.

Over 90% of forex traders lose and “buying low selling high” without confirmation will see you join them, don’t fall into this trap.