There are many preconceptions about what it actually takes to become a successful trader. However here are a couple of points to consider if you want to become a profitable forex trader.
Firstly you should try and forget about trading short-term / day trading strategies. Many people believe that if they want to make big profits from forex trading, then they need to trade lots of positions every single day. However this couldn't be further from the truth.
Day trading in itself is very difficult. You have to make quick decisions and deal with highly volatile markets, particularly during times when economic data releases are announced. You also have to deal with increased spreads during these busy periods which can seriously deplete your overall profits. You also have to deal with the random noise that occurs when the price isn't trending in one direction or the other, so overall it is far from easy.
A much better strategy is to use much longer time frames such as the 4 hour or daily charts, for instance. In general you will often find that technical analysis is much more reliable when you use these longer time frames.
This is something that is endorsed by many top traders such as Bill Poulos who has actually devised several trading strategies that only use end of day charts. (More details can be found by reading this Forex Profit Accelerator review).
Anyway the point is that although you can make money from day trading, it is so difficult to consistently make money in the long run. Scalping systems will often generate short-term profits but there are very few systems that will continue to be profitable in the long-term. Longer term systems are usually much more dependable and are often much more profitable because each trade usually has much larger profit targets.
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