There are many reasons why short term trading is very difficult but a major reason that makes it so hard is because the spread is such a high percentage of your bet.
For example, let's say that you are trading a pair with a 3 pip spread and you are going for a 10 pip profit with a 10 pip stop loss.
In order for you to hit your profit, the pair has to move 13 pips.
In order for you to get stopped out the pair has to move 7 pips.
It really seems like this is the sucker bet of all bets unless you have a holy grail system that works nearly all the time and I am sure that as we all know that, due to the nature of the markets, the holy grail does not exist.
Due to these horrible odds, it seems that if you are trading- short term- with anything but the holy grail, over time you are guaranteed to lose all your money.
For example, let's say that you are trading a pair with a 3 pip spread and you are going for a 10 pip profit with a 10 pip stop loss.
In order for you to hit your profit, the pair has to move 13 pips.
In order for you to get stopped out the pair has to move 7 pips.
It really seems like this is the sucker bet of all bets unless you have a holy grail system that works nearly all the time and I am sure that as we all know that, due to the nature of the markets, the holy grail does not exist.
Due to these horrible odds, it seems that if you are trading- short term- with anything but the holy grail, over time you are guaranteed to lose all your money.