ArticlesTree

Day Trading - Want to try it? Then Say Goodbye to Your Equity

Posted by: kelly Price    Posted on: February 7, 2008


More Investment Articles

Technical Analysis - The Art Of Trading
Performing technical analysis is a vital component of investing wisely in various securities and can be done to any type of security, including: stocks, mutual funds, bonds, etc. When you do a technical analysis on a specific security, you are looking for price fluctuations, trends and price patterns.

Investors Need Positive Numbers
Investors Need Positive Numbers By William Cate Most investors gamble against overwhelming odds. They lose. Many investors don't even realize that they have lost. To be a winning investor, you must gamble with the odds strongly on your side. Conservative investments are relatively safe losing investments.

500% profit return in Five Years investment in Cheap Bulgarian Property
Are you always looking for that rock solid, amazing profitable investment to provide financial security for you and your familys future? If you have just answered yes, then read this article and you will be amazed by this once in a lifetime opportunity to invest in unbelievably cheap property in the last affordable country in Europe left outside of the European Union.

High Flying Stock: L International Computers, Inc. The Next DELL?
L International Computers, Inc. is a publicly traded company on the pink sheets under stock symbol LITL. According to a recent press release, the company designs, manufactures, markets and distributes high-performance, opulent PC/Windows© laptop, desktop, workstation and server computers. Further, the company states it also produces the largest and most spectacular personal & professional visual displays as well as ultra-high performance software, peripherals, and personal electronics technologies.

Options Trading - Advantages And Disadvantages
Options trading is yet another possibility when it comes to investing and trading. An option is defined as a specific contract that fixes the price of a certain security (i.e. stocks) over a designated period of time, and options trading involves trading on different exchanges such as the New York Stock Exchange and the American Stock Exchange.

Stock Trading Class For Your Success.
If you are going to get into the stock market, taking a stock trading class is the most important thing you can do to become a success. If you start your stock trading with no knowledge what so ever, you are headed for failure, and will lose all your money. You should take your time when it comes to learning how to trade stocks.

How To Find Tomorrow's Winners
Don't waste your time and energy worrying about the big ones that got away, invest these two precious commodities to find tomorrow's winners. If you are hunting for individual stocks or sectors, begin with an assessment of what people are going to need more of in coming years and try to find those companies that are leaders or trying to become leaders in those fields.




Day trading is popular with huge numbers of novice traders yet you are guaranteed to lose in the longer term, as the logic it is based upon is simply not true and can never work. ..

Lets look at the two reasons why if you day trade you will lose.

Before we get started on the reasons why day trading is a guaranteed route to losses lets look at why you see track records with huge profits on many day forex day trading systems.

Here is the reason they all carry a disclaimer like the one below which means they have NEVER been traded:

"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 you can make anything up you like and the track record is not worth the paper it's written on.

What's the point in having a track record if it isn't real and also you would think that the person selling the system would actually show confidence and trade it!

The reason they don't is most are sold by marketing companies looking to dupe naďve and greedy investors. Try and find a forex day trader with a real time track record and let me know if you find one you won't

So why doesn't day trading work?

The reason is obvious all volatility in short time frames is of a random nature and all support and resistance levels are not valid.

You cannot get the odds in your favor when day trading and if you can't get the odds in your favor you will lose - Period.

You simply can't judge in such a short time span what prices will do.

You have millions of people all with different motivations and personalities and to say you can measure what this vast diverse group will do in under a day is simply destined to failure.

So the next time you see that tempting day trading track record check the small profit, as chances are its never been traded. Then think about the above and you will see that day trading is a total mugs game.


About the Author

NEW! 2 X FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and more on currency trading systems visit our website at: http://www.learncurrencytradingonline.com



Source: Investment Articles on ArticlesTree.com





Recent Investment Articles

ETF Profit Driver Review
ETF Profit Driver takes investing in exchange traded funds to a new level, adding one more reason to abandon your old mutual funds in favor of ETF products. Bill Poulos has assembled a comprehensive method of managing a portfolio of ETF's in a manner that drastically reduces risks associated with market downturns, while dramatically increasing potential for sustained capital appreciation.

ETF Profit Driver - Another Reason To Favor Exchange Traded Funds
Bill Poulos has developed a comprehensive course designed exclusively for use with Exchange Traded Funds. ETF Profit Driver consists of four trading methods that, when used with ETF's, offer earnings potential that will make you question why your capital is tied up in mutual funds.

Defense! Defense! Five Stocks That Win In Every Market Scenario
In a shaky stock market environment, there is no better place to turn than the defense contractors. Leading the S&P index by about 20% in 2008 (the 8th straight year of better relative performance), the so-called "big five" have their work cut out for them in 2008 and beyond.

Current Indian Stock Market Scenario vs US Recession.
Indian Stock Market including both NSE-National Stock Exchange and the BSE-Bombay Stock Exchange have certainly taken a tremendous beating in the past few weeks. We are sure most of us here knew that the correction in the trading curve was round the corner which would be healthy, and the markets would bounce back from 18k levels with the help of mutual fund investments & buying of Indian stocks again.

Work from Home Jobs can build your Future
As time proceeds, so civilizations design new techniques and tools to make life easier and simpler. The advent of the Internet has revolutionized not only the information industry, but also the life and habits of people.

Learn to invest money - with funds
If you want to learn to invest money the first thing you should know is that it is not as hard as you might think. In addition you'll also be pleased to know that it may require much less money than you initially feared to get yourself started making successful investments.

Forex Assassin review.
It was something about four weeks ago when I first learned about Forex Assassin. I read about it at one of Forex forums and the guy who mentioned it said everybody should get it in order to succeed in Forex quickly.

Forclosures
Forclosures Hello Everyone, What is a forclosure and how do I find them? Bank foreclosures are homes or properties that are owned by banks or lenders. The banks own them because they are the result of foreclosure.

'Doubling Stocks' Pick Up 37.03% in Two Days
NOTE: Just two days after "Doubling Stocks" editor Michael Cohen announced his latest stock pick -- i.e., Rudy Nutrition [RUNU.PK] -- the stock rose a whopping 37.03%. Last evening [03/26/2008], just after the trading markets closed, here's what Cohen reported to his subscribers: By Michael Cohen -- Editor, "Doubling Stocks" Since I picked RUNU [Rudy Nutrition] as a company to write this week's report on.

Picking Hot Penny Stocks
Penny Stock investing can be an exciting and very profitable way to make some extra money from home or on a part-time basis. For beginner investors, penny stocks are a low-risk entry into the stock market.

Capitol presorvation, the overlooked part of trading
Capital preservation is one of the most important things to consider when you are trading. You may have a system that works, but if you lost all your money on 1 trade you cannot make money with your system.

The Best Investment Most People Don't Care About
Many are looking for investment opportunities that would yield them a lot of money. They shop around for such investments while others just rely on others opinion of such investment opportunities without really understanding why that investment is good.

Stock Market Timing >> Timing Stocks .. Stock Market Strategies
BY.- http://www.PracticalDayTrading.com In the stock market its always possible to watch certain stocks go up between 10% and 60% within a few hours or days.

Are You Thinking About Investing Internationally In Stocks?
One of the big challenges an investor faces on a daily basis is market risk. Working hard to satisfy your investment goals while at the same time limiting your risk and exposure to volatility takes a solid strategy, reliable information, and a patience like no other.

'Doubling Stocks' Editor: Drink Up Rudy Nutrition [RUNU.PK]
Editor's note: Yesterday, "Doubling Stocks" editor Michael Cohen gave his subscribers a heads-up regarding what he called a "famous stock pick" that deserved attention, and promised that he'd provide full details this morning.



Terms of Service