Many new traders often fail to make money trading forex because they are lured by the easy prospects of making millions of dollars and are confused over the hundreds of indicators and forex financial terms. With tons of data and indicators constantly changing, it can be difficult for new traders to grasp the underlying trends and that will lead to poor trading decisions.

Day traders are concerned with what happens in the market today. Your trades start and finish the same day. Not tomorrow, not next week and not next month, but same today. The job of the day trader is to capture intraday price swings. Depending on the system or trading method employed, this can mean capturing one intraday swing or various intraday swings.

As a day trader you need to capture various price swings during the day, your objective is focusing on the appropriate time frame chart and naturally your profit objectives will be much smaller than that of a swing trader (who places a single trade aiming for a much larger profit objective).

So, when placing several trades during the day it can be easy to drift away from your pre-determined stop loses. A day trader's thought is - if I extend my stop loss just a bit I hope the market will turn around! Forgetting that Hope is one of the traders biggest enemies.

These little extensions of stop losses add up and suddenly without noticing you are losing more dollars per trade than planned making your risk/reward ratio turn against you.

The Challenges For Any Day Trader

One challenge for any day trader is to accurately predict the range when faced by:
Trillions of dollars traded each day, by millions of participants which include:
Central Banks, large and small managed funds, hedgers and individual speculators.

They all have different investment objectives. Some want to make money and some simply want to hedge their risk. How many of these pay attention to daily movements and ranges within the day?
Only a very small minority.

With such a vast and diverse trading base, support and resistance calculated within the day is bound to be a fruitless exercise.

Reason being that you cannot accurately predict volatility within such a small time frame and the vast majority of participants are not bothered about day trading levels.
This means you are using meaningless data that has no validity.

Day trading is still the equivalent to flipping a coin and traders in this category lose all the time and never make money longer

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