Day traders look to use hourly charts within the day so they can trade with limited risk and get out with a profit.

When doing this they use a variety of technical indicators such as pivot points to help them.

Let’s see how intra day charts can be used to help make profits in forex day trading.

The answer is you cannot make profits consistently trading using intra day charts!

This is obvious to most people except day traders.

The Proof

The reason is obvious, but many novice traders fall for the hyped sales copy of vendors selling these forex day trading systems.

However, if you ask them for their real time track record you won’t get one.

Of course, you will get a hypothetical track record done in hindsight.

These show wonderful profits, but as the track record has been constructed in hindsight knowing the closing prices it’s not exactly hard to make money!

If I knew tomorrow’s closing price today I would be a multi millionaire but of course forex trading is not like that.

The reason why intra day charts are useless and day trading logic is flawed:

1. Consider this everyday trillions of dollars are traded by countless millions of traders all with different investment objectives and styles.

To think that this mass can be predicted in the time period of a few hours is laughable.

2. Most of these traders pay no attention to day or intra day levels the only people who do are day traders and their a tiny losing majority.

As these levels are not considered important, volatility can and does take prices anywhere.

3. It’s a fact that volatility within in any day is random.

It doesn’t matter what indicators you use, day traders are working with meaningless data.

4. Day traders who use intra day charts think that they can restrict risk, but of course they actually create it.

Their stop levels get triggered the majority of the time, as volatility stops them out.

When their lucky enough to get a winner, they don’t run the position and are grateful to get out with any profit they can.

So not only do day traders use meaningless data, they also break the fundamental rule of investing:

Cut your losses and run your profits to cover them.

Day traders to be fair do keep losses small ( and they have a lot of them ) but of course they can’t run profits to cover them.

What is the end result?

A wipe out of account equity.

If you want to lose your money quickly, their really is no better way then trading with intra day charts.

So why do so many people fall for day trading systems?

They tend to be greedy investors who think forex trading is easy, or novice traders who don’t know any better.

Day trading systems are sold by vendors who rely on attractive sales copy.

They tend to fall into two groups failed brokers or marketing people who have never traded.

Of course their not stupid enough to trade the systems they sell themselves – That’s why you never get a real time track record

They simply make money from selling the system and leave buyers to lose money.

They win, day traders lose, it really is that simple.

Forex day trading and success are a total contradiction in terms – day traders don’t make money. If you want to prove this, just ask anyone selling a day trading system for a real track record – you won’t get one. Why? Let’s take a look.

The Odds

If you want to trade and win you need to be able to take calculated risks when the odds are in your favour and you cannot do this in day trading, as you have no reliable data.

Consider this:

Countless millions of traders all with different opinions trade trillions of dollars per day and to say that you can measure market movement in just a few hours or a day is ridiculous – you can’t.

Prices can and do go anywhere in a day and support and resistance levels are meaningless.

You may as well flip a coin it will be just as effective.

FACT – If you dont have relaible data you will lose over time its 100% certain – PERIOD

BUT I SEE GREAT DAY TRADING RECORDS ALL THE TIME!

Yes you do, but look at the track record and it will say:

“Hypothetical” and you will get a disclaimer.

In case you have never read one – it basically says that the track record is done knowing the closing prices!

Well that’s hard!

Let’s see if I knew tomorrow’s price in advance would I make a lot of money – of course I would. However, you don’t have the luxury of knowing the closing price when you trade though and you will lose.

Claims with No Proof to Back Them Up

I have always maintained that these hypothetical track records should be banned – There of no use at all.

Vendors use them to dupe people into buying forex day trading systems and normally throw in some outrageous headlines as well that never have any facts to back them up.

The vendor wins You Lose

The vendor’s don’t trade these systems (as they know they have no chance of winning) so they sell them to you take your money and you trade and lose.

The Myth & Reality of Forex Day Trading

The myth of making money in forex day trading is perhaps the biggest myth in currency trading – it’s actually a guaranteed way to lose and if you don’t believe me try and find someone who has made money at it.

Get ready for a long search!