Incoming LinksIn the last couple of postings on day trading I have been looking at the down side of day trading and a look at a popular system and why it fails. In this third and final posting I want to unpack an example of someone who has made a bucket load of money, how they did and why it works.
In the previous posting on day trading currencies, I looked at the issue of how the effect of the brokers spread is magnified when you trade with tight profit targets (e.g. 10 pips) and how many beginner traders think that the popular systems out there are so good they can still overcome a house edge of 20% (i.e. a profit target of 10 pips and a 2 pip spread). In this post I will take one of the more popular day trading systems out there and show you that traders of this system certainly have no chance at over coming the house edge. (more…)
If you read the forex forums or buy ebooks on forex trading, it seems that the whole retail forex trading world is obsessed with day trading. Forums are replete with newbie traders all desperate to become “financially free” using day trading on currencies. I know I was one of them. Like an addict trawling the streets for a dealer to hook them up, I would spend all night ignoring my wife while I trawled my way through forums looking for that holy grail indicator. All the while I kept one eye on price action on another screen littered with various charts and one ear on CNBC. In between all that I would make the occasional trade and feel the elation of that 10 pip win or the downer of that 20 pips loss that you hoped would come back and never did. Then I would wake up and the next day exhausted. I would drag my arse out of bed and spend all day at work half focussed on my day job while I anxiously waited to come home and repeat the exercise. I was living the “dream”. The only thing that stood between me and wild success was an indicator or something or other and I knew all I needed to do was to just keep on searching those forums.
In this posting I might go after the day trading sacred cow and share with you some of the things I learned from my brush with day trading. (more…)
Notice: The content of this site is informational only and does not provide personalized investment advice. Each user is responsible for their own investment activities and should seek advice from a financial adviser. Trading on margin carries a high level of risk and is not suitable for all investors. Read More ...
