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All over the net you see day trading systems promising extraordinary gains but the fact is none of them work and never will for the following reasons. Before we start looking at day trading systems and why they don’t work, lets look at the fantastic track records many vendors produce which are quite frankly not worth the paper their written on, as they don’t even mean the system has been traded! How can people do this? Well read the track record and we will explain. Here is the CFTC standard disclaimer. “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” Providing you put this disclaimer on the track record, you can go ahead and make the track record up and say anything you want. Could you make money KNOWING the closing prices? Of course you could, so can any one who can read and write! These track records allow vendors simply to make them up and they appeal to greedy, naive or lazy investors and they sell loads of them. These traders then wonder why they get wiped out! Ever wondered how you can get a 5 figure monthly income with no drawdown - if you buy a system for a few hundred bucks? Well now you know it’s made up. If anyone thinks that because a track record done knowing the closing prices will win going forward, in my opinion deserves all they get - a swift wipeout. Do you ever see a real time day trading track record of profits? Of course you don’t – because it doesn’t work and the vendors rely on selling courses for a living - their far too sensible to risk their money in the market! They get a guaranteed profit and you get trading loss – that’s the deal. Day trading has never worked and never will - that’s why no day trading system will ever make money. WHY DAY TRADING DOES NOT WORK The reason is all short term volatility is random – this means you can never get the odds in your favor, as volatility can and does take prices anywhere in a day. You actually would have as much luck tossing a coin. The myth that you can make money day trading, is one of the myths novice traders fall for and if you do to then you will lose all your money. If you don’t believe me - try and find a real time track record and let me know when you do, as I have been searching for 25 years and never found one.
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