FOREX Day Trading - Brokers Love Day Traders For One Reason

Forex day traders are like brokers traders they simply want more than any other retailer.

Forex day traders are wary of brokers, because they think they pick their stops off and that's why you love them - but the real reason is:

Day traders are bound to lose their money without any help from the broker. I used to work in back office and the broker, and we are factored in as a loss immediately and fat profits for us.

So here are the reasons we liked them and other brokers do:

1 Day trading by its very nature does not work

attempt to trade in a short time spans several hours or a day and to try to measure where the prices are going is ridiculous.

All short term volatility is random and prices can and do go anywhere.

We traded several thousand day traders, and not one made ​​money, they are all lost.

day forex trading logic is based on completely wrong.

Try this simple test:

Ask any vendor selling system on the net and ask for a real time track record and see if you can get one - you will not

.

Many of these are not just writers or broker.

They make the track records they sold, and then do a deal with a broker to kick back a commission and we believe the commission is good - we paid out tens of thousands each month

!

2 large commissions

is the best day of trading capital you can get a commission for the broker who is great.

A lot of trades, eroding the capital account to zero and pay a commission every day.

much better than a trader comes and blows his capital in a few trades.

Market makers are just as happy.

as they want retailers and lost deposits on their books.

They have been trading against the client and not have to worry that they will soon be in the bank. Furthermore, as the day traders would not be a big profit (profit running is totally foreign to them)

carries the risk of a trader in his book as a mediator is low.

NO AGENTS HUNT stops?

the answer is no.

Day traders believe this, but the real reason is to set your stops in the immediate vicinity.

Support and resistance are meaningless in the day session and that is why stops get hit all the time.

Its not blame the broker, to the day traders are stupid and putting his stops in meaningless time frames in which volatility is random.

Does it.

The reason brokers love day traders is their big money earners for the house and certainly lose, but it is perfect for market makers.