Forex scalping systems;Choosing the best for a regular income
Forex scalping is a method of trading that is very popular online and intends to take small regular profits each day to mount up big profits over time. There are many vendors selling forex scalping systems but how do you choose the best - lets find out.
While there are many vendors who claim to make a living forex scalping none of them do as it's a method destined to failure which we will look at in this article.
Forex scalping involves calculating where prices may go in a matter of hours and as all short term volatility within a day is random this is doomed to failure.
If you think about the above its really common sense to anyone but forex scalpers:
Trillions of dollars are traded daily, by millions of participants and to say that you can work out where prices will go in such a short time frame is simply laughable.
Forex day trading and forex scalping simply doesn't work - PERIOD
The Myth of Forex Scalping Track Records
So why do you see so many track record that make money sold by vendors?
The answer is these track records are not "real" - to understand this, you need to understand and digest the disclaimer they use.
Below is the standard CFTC disclaimer you will see and after you have read it you will see why the track records presented are so meaningless. Here it is:
"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 show".
If you have read the above disclaimer you will realize that any forex scalping system that uses this disclaimer needs to be treated with extreme caution.
Hypothetical and simulated means exactly that - the track record has been compiled KNOWING The closing prices! So how hard is it to make one profitable?
Its not difficult and anyone who can read and write can do it - and it is amazing people take them seriously.
The forex scalping systems you see have marvelous results on paper ( and no wonder ) and then fail in real time trading - no surprises really.
The only way to judge a system is its performance going forward, NOT knowing the closing prices - but the people who sell these systems, know they don't work and want to make money selling systems not trading them.
Of course this is fairly obvious when you think about it.
If a vendor could produce the track record in real time they do in their simulations, they wouldn't bother you for a few hundred bucks - they would be to busy making money!
Do not fall for the myth that forex scalping systems will make you money - they wont and never will succeed, because the logic they are based on is totally wrong.
If you are ever lucky enough to find a real time one that does let me know I have been looking for one for over 20 years!