Forex Scalping Systems
I want you to read at our section of forex day trading first, this information is also applicable to forex scalping.
There are many forex scalping systems that claim to make money. They publish track records, telling you how to make big long term profits from scalping small regular profits.
Of course, if you read what I wrote in forex day trading, you will know that these track records are not real - it is composed. They are simply simulated in hindsight knowing the closing prices. If we all knew tomorrow's price today, we would all be millionaires - but forex trading is a little harder than that!
Below you will see the disclaimer that accompanies most forex scalping system track records. After reading it, you'll understand why performance presented is quite meaningless:
"CFTC RULE 4:41 - .. Hypothetical or simulated results have certain limitations Unlike actual performance record, simulated results do not represent actual trading Also, since trades are 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. Do not make a representation that any account will or is likely to to achieve profits or losses similar to those shown. "
Anyone who believes the performance with accompanying written above are asking for trouble as the system has never been proven in real time. It is surprising how many people trust these compiled track records, then wonder why they lose real time trading!
As mentioned in our forex day trading section - all short term volatility is random, you can not get the odds on your side and you can not win - period.
If you think about it the reason is obvious:
You have millions of traders from all over the world, with different forex trading strategies, different levels of skill and the vast majority subject to their emotions.
So how can you predict what this vast diverse mass of traders will do within a few hours or minutes?
You can not and thinks he can be funny.
Just as day trading systems, so forex scalping systems, such logic simply will not allow you to gain a trading edge.
Forex scalping is promoted as a low risk form of trading but its very high risk as they have no chance of winning. You are simply guaranteed to wipe out your equity if you try. Sure you may be lucky - but in any random game, your luck will run out and lose.
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