Many trader use intra day charts to try and time the market for maximum profits and keep losses small and make big profits overtime.
But how can you do this? Lets find out.
Intra day charts sound like a great way to maximize profits and keep losses small but all you will do is end up losing money quickly.
Why?
Consider what the FOREX market actually is and you will see why using intro day charts is simply a good way to put the odds firmly against you.
The FOREX markets are huge and trillions of dollars are traded everyday and you cannot predict what will happen in such a short time frame as a few hours or minutes.
Its a ridiculous way to trade.
There is insufficient data and volatility in such short time frames is unpredictable.
Trade with the odds
Currency markets trade longer term and reflect the underlying health of the economy (which of course is long term) and intra day movements are random.
You cannot set stops intra day, as daily resistance and support points are meaningless.
The scenario that dooms you to lose.
You can keep your losses small, but your chances of being stopped out are also high.
As for running profits, intra day traders simply want to get out in the day with a profit.
They can do this sometimes (by luck more than anything else) but their profits are never big enough to cover their inevitable losses.
Ever heard the phrase
Run your profits and cut your losses?
Its sound advice.
You cant do this trading intra day.
All you will end up doing is keeping your losses small, have higher odds of being stopped out and never be able to run your profits to cover your inevitable losses.
The net result You lose all your money over the longer term.
Intra day trading is mostly promoted by system sellers or vendors who simply make money selling to you.
They dont trade themselves and if you ask them, can NEVER Produce a real time track record of consistent gains.
You may get a few testimonials or a hypothetical track record in hindsight.
We can all make money in hindsight, but trading intra day in the market real time is far harder and you will lose.
Dont fall for this method of trading you will simply lose as the odds are firmly against you.
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