Forex scalping is one of the most popular methods of making money on the net and involves day trading and taking small regular profits that will eventually lead to huge gains over time. Let’s look at forex scalping in more detail.
There is a huge industry in forex scalping systems and vendors promote them heavily on the net with track records that are quite simply mind boggling. The problem however is – they don’t work and you will lose.
These guys are NOT traders in most instances, their simply marketing organizations.
As a trader for 25 years I simply laugh when I see headlines such as “make 700 pips a week” etc but many naive and greedy traders get taken in by forex scalping marketing copy and its no laughing matter when they lose their money!
So why doesn’t forex scalping or day trading work?
Well if you think about it it’s obvious:
You have millions of traders, trading trillions of dollars and to say that you can predict what this huge mass of people will do in just a few hours – is quite frankly ridiculous.
Volatility can and does take prices anywhere in a day and support and resistance levels are meaningless – so you cant get the odds on your side and you cant win.
Anyone who thinks they can win has not tried forex scalping!
So you can’t win longer term?
No you can’t –
Many vendors claim that you can predict with scientific accuracy what will happen in forex -Really?
If they could, they wouldn’t be selling forex scalping systems – they would be to busy making money.
Another point of course is if you could predict what markets do in advance then there would be no market as we would all know the answer in advance, markets move on uncertainty and opinions and thats an investment fact.
The vendors however do produce track records but their meaningless and not worth the paper their written on.
Check the disclaimer and you will see the words “simulated” and in “hindsight” – so there done KNOWING the closing prices – how hard is that?
You, me or anyone else could do that. There is a problem though!
In the real world, you have to trade without knowing the closing prices and that makes things a little bit harder.
The rewards of forex trading are huge and its not easy to make money – but if you try a methodology based upon forex scalping, you are simply going to get a lesson in how hard it is.
THE GOOD NEWS!
Of course, with the rewards on offer you wouldn’t expect it to be easy either and that really is good news.
Leave the forex scalping systems to the dreamers and lazy traders and do your homework and get the right forex education and that means trading longer term and getting the odds on your side.
You can trend follow longer term or do short term swing trading and both can make you money you just need to get a simple system to trade the odds and in these time frames you can get the odds on your side.
Forex trading can give you gains that can be life changing and everything about forex trading can be learned by anyone, with the desire to succeed and the right education.
So if you want to win at forex trading, forget forex scalping and trade longer term, get the odds on your side and you could soon enjoy currency trading success.
By: Monica Hendrix for Streetdirectory.com