Most new traders want to try short term trading strategies and end up day trading or scalping but which are the best strategies to use? In this article we will look at the best short term trading methods for profit.

The first point to keep in mind is how many people lose when they trade currencies and its 95% that's a big percentage, meaning that only 5% of traders actually make money. The 5% of winners are not day traders or scalpers, their trading long term.

The reason they don't day trade or scalp is simple – it's what losers do. Sure, most new traders day trade or scalp but as we have just seen these traders lose money so why are short term trading strategies doomed to failure?

Random Volatility and the odds of Success

in short term time frames Forex price movement is totally random and there is no way of making money long term. Traders think they can predict just a few pips movement but how is this possible?

Literally countless millions of people are all trading and making the price and they all have different skills, objectives and emotional make ups and you simply cannot in a a small time frame work out what they will do, the idea is absolutely ridiculous. If you don't believe me about top traders not day trading, simply read some of the books by real pro traders who have made money – none day trade or scalp which leads me onto the next question.

Why do People Scalp and Day Trade?

If day traders lose money and it's obvious they do, why do most new traders decide on this method of trading – the answer is naivety and greed. Since online Forex trading has opened up trading to everyone with a hundred dollars or so, a massive industry has grown up selling get rich quick systems and signal services.

The vendors of the these systems just make up a story which is you can make money every day trading and do so with low risk. You can take small regular profits and make money with no effort with so called Forex robots or Forex Expert advisors

Forex Trading Robots

These are cheap mechanical systems which the vendors say will let you trade Forex successfully with no effort. For a few hundred dollars, you but the program and then just sit back, as the robot makes you huge gains – the story of course is a lie. When 95% of traders lose making money is not that easy and all these traders who trade these systems, soon lose all their money.

Winning Strategies

If you want to make money trading currencies, you should focus on longer term trading strategies and accept losses and don't expect to win every trade. You need to focus on longer term trends and tight money management to win – this is what all successful traders do and you need to do it to if you want to win – so don't trade the noise of the markets and trade short term focus on the long term trends.

Final Words

Don't believe the hype about currency day trading and scalping – it doesn't work. Focus longer term and don't look for easy money – treat currency trading as a serious business. In a business such as Forex trading, its the trader who gets the right education and focuses on the long term that wins. The greedy and naïve trader, who trades short term loses – it really is that simple