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    of these pay attention to daily levels or ranges?

    A tiny minority of losing day traders.

    As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

    So why

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    Perhaps the biggest myth of FOREX Trading is you can make money with day trading systems.

    Day trading systems make money only for the people selling them and the investors who use them, simply lose their money and lose it quickly.

    If you want to know why read on.

    The Logic

    Day trading logic is based around the fact that you can make money by predicting where prices will go in a day, or even a few hours.

    The reality is:

    All short term volatility is random, which is of course common sense to everyone but day traders.

    Think about it:

    You have trillions of dollars traded each day, by millions of participants all with different investment objectives.

    The major groups can be summarized as follows:

    Central Banks – Trading at key levels to push currencies up or down.

    Large speculators – Looking to make money for themselves or for their clients.

    Hedgers – Interested in offsetting risk.

    Small speculators – Everyone else, who does not fall into the above groups.

    How many of these pay attention to daily levels or ranges?

    A tiny minority of losing day traders.

    As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

    So why

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    why read on.

    The Logic

    Day trading logic is based around the fact that you can make money by predicting where prices will go in a day, or even a few hours.

    The reality is:

    All short term volatility is random, which is of course common sense to everyone but day traders.

    Think about it:

    You have trillions of dollars traded each day, by millions of participants all with different investment objectives.

    The major groups can be summarized as follows:

    Central Banks – Trading at key levels to push currencies up or down.

    Large speculators – Looking to make money for themselves or for their clients.

    Hedgers – Interested in offsetting risk.

    Small speculators – Everyone else, who does not fall into the above groups.

    How many of these pay attention to daily levels or ranges?

    A tiny minority of losing day traders.

    As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

    So why

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    to everyone but day traders.

    Think about it:

    You have trillions of dollars traded each day, by millions of participants all with different investment objectives.

    The major groups can be summarized as follows:

    Central Banks – Trading at key levels to push currencies up or down.

    Large speculators – Looking to make money for themselves or for their clients.

    Hedgers – Interested in offsetting risk.

    Small speculators – Everyone else, who does not fall into the above groups.

    How many of these pay attention to daily levels or ranges?

    A tiny minority of losing day traders.

    As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

    So why

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    evels to push currencies up or down.

    Large speculators – Looking to make money for themselves or for their clients.

    Hedgers – Interested in offsetting risk.

    Small speculators – Everyone else, who does not fall into the above groups.

    How many of these pay attention to daily levels or ranges?

    A tiny minority of losing day traders.

    As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

    So why

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    of these pay attention to daily levels or ranges?

    A tiny minority of losing day traders.

    As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

    So why do people buy these day trading systems?

    Basically, because they have good sales copy and appeal to the greed of investors.

    The only people who win are the vendors selling the system and they are of course not stupid enough to trade it themselves.

    Don’t believe me?

    Then ask for a track record of profits made over the longer term by vendors trading the system and you won’t get one.

    What you will get is:

    Maybe, some testimonials from friends or people who have had a lucky trade, or the favourite of day traders:

    The Hypothetical track record.

    This of course shows great profits, but there is a major problem:

    A simulated hypothetical track record is done knowing the closing prices and is constructed in hindsight.

    Let’s see, if I knew tomorrow’s closing price today could I make a profit?

    Umm hard question, think I might be a multi millionaire!

    The myth that day trading systems make money is one that novice traders fall for all the time – don’t make the same mistake.

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