So you want to day trade Forex, can you do it and can you make money day trading? This article will give you the reality of day trading and scalping the Forex market so let's take a look at the money making potential...

Lets look at day trading and Forex scalping in more detail. Let's start with why the majority of traders decide that they should try this method of trading.

Forex Day Trading Advantages

The majority of new Forex day traders read the copy the write from the huge number of courses and trading systems that are sold online and are told the following:

1. Day trading is a low risk high reward form of trading.

2. You can trade with tight stop loss protection with a day trading system and risk a low number of pips per trade.

3. You can win far more trades than you lose and win, on up to 90% or more of your trading signals.

    

4. You can make a regular monthly income over time.

Day Trade Forex Markets – The Advantages are not Quite as they Seem

The advantages of Forex scalping or day trading, are all a myth though so lets dispel the myths above

1. Day trading is low risk – no its not, your trading random volatility or the market noise and this means you have random price movement. This means you will lose long term. Smart traders trade longer term moves of days or weeks where the odds can be traded and they can win.

2. Anyone who thinks they can trade with 5, 10 or 20 pip stops and win long term is in for a reality check; these stops will be in random volatility and see a trader lose money.

3. The best traders in the world, probably only win on around 30 – 50% of their trades so to say you can win on 90% is not true. When you lose more trades than you win, you have to cover your losses with bigger profits. Trading within a day session simply will not allow you to do this with your trading system.

4. Markets change all the time and so do the conditions of trading pairs from trending to range trading and you will not make money regularly. Sure you can make money over longer term time periods but even the best Forex trading strategies, will lose for several weeks or a few months. Trading Forex markets is long term and your trading systems performance, needs to be judged over the longer term too i.e. 1 – 3 years.

Final Words

If you want to day trade Forex markets we would recommend you don't. We would suggest your Forex trading education is focused on longer term trading methods where not only will you have the odds on your side and can make more money from your trading signals, you will also spend less time and effort trading.

Forex scalping and day trading is promoted as an easy way to make money with low risk but this is all hype and the reality is - it's not a great method to use to seek long term profitability.

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