Is Forex Trading Classed As Gambling

Is Forex Trading the same as Gambling?

I have been asked many times 'Is Forex trading the same as gambling?'.

My answers:

Yes, it is gambling when one treats the Forex market like a huge Jackpot machine or Roulette table where the hope of winning is dependent on nothing else but pure luck.
The problem with casino gambling is that the odds are stacked heavily against the gamblers.
In Forex trading, the trader needs only to overcome the odds of a few PIPs spreads payable to the broker before he/she can attempt to make a profit.
Trading 'blindly' in the Forex market with no plan or strategy will cause the Forex gambler to lose money just like any game of chance.
The consequence is worsen when the Forex gambler does not apply stop losses in his trading.
No, it is NOT gambling when one treats the Forex market like any other business or profession where opportunities can be seized and risks can be mitigated.

Trading is gambling. If you don't accept that or understand that you shouldn't be trading. Gambling is betting on an uncertain outcome. Even if you have an edge that has a very high win% the outcome is still uncertain.

• Comparing forex trading to gambling holds an argument that is, on its own merits, practically sensible. The mechanics are analogous in that both activities are exposed to a financial risk and reward tradeoff. Addiction is presumable, and evidently, emotional roller coasters are also at play.
• Spend any time delving through the copious trading literature on a popular forex trading company like iMarketsLive, and you’ll see that, for the most part, “educated gambles” are discouraged. Gambling in forex often creates a vicious cycle, one that puts the unwary investor in a hole really fast.

The difference between the Casino and the Forex market is that, most are games of chances with the former versus a contest of strategy for the later.
Unlike a game of chance, the Forex trader can rely on price patterns and analysis to decide on the opening and closing a position with a probability of winning in his favor.
One of the main issues with gambling, is that it is addictive.
Gamblers step into casinos with nothing but their hope to make money. When they lose money, the desire to recover losses will lead them to gamble more, and often more aggressively.
A Forex trader can easily become a Forex gambler when he lets his emotions dictate his actions to trade impatiently and illogically.

Unlike gambling, trading is much more than just betting on an outcome.

A good trader has and adheres to a trading plan that gives him the statistical edge of winning.
He monitors the trades in progress and trail his stops to maximize his profits and minimize his losses.

Automating his profitable trading plan will give him the added advantages of freeing him the time to trade around the clock and without the emotional ups and downs that can cause many good trades to turn bad and bad ones to become worse.

The fact is:
The buying and selling of currencies is no difference from the trading of goods which we try to buy at a lower price and sell them off at a higher price to make a profit.

Why Forex?

No other businesses and professions can beat the $5 trillion a day Forex market in size and the advantages and benefits of Forex trading.

The entry barrier is low. A trader doesn't need a University degree and years in practice to trade.
All he needs is an internet connection and a couple of hundred dollars to trade for real, 24/5.5 days a week.
The daily swings of a hundred PIPs or more for the major currency pairs offer the astute traders ample and unmatchable opportunities to ride the trends or to take the profits.

The earning potential is unlimited and the freedom to work for yourself is priceless for those who care to master the skills of trading.

A good trader is like a successful surgeon or business owner.
The pre-requisite is for them to master their skills before they can start to earn a good living for themselves.

The Holy Grail in trading is no different from good practices adopted and perfected by these professionals and businessmen.
They adhere to proven principles and adjust their approaches to changing market conditions to stay ahead of their competitions.

Please click on High Probability Trade Setups and Triggers + Trading the EURUSD to see how price patterns can be used to trade profitably.

My Observations:

It's always better to trade with your own system than to rely on others' because the market is dynamic and requires you to adapt to stay profitable.

Trading with an EA based on profitable trading strategies is a bonus as it will free the trader from having to monitor and react to changing prices.

As an IB, I know of some traders who are making profit consistently in their trading, manually or otherwise.

Based on my analysis of the Traded Volumes, Funded Amounts and Current Balances, many of the profitable traders opened and held on to their trades before closing them within the following few days.

In my opinion, the trader who has the patience to wait for the optimal price to enter the trade, take the first profit with a partial close and let the remaining lots ride the trend will survive and become profitable under most market conditions.

This approach allows the trader to minimize losses from erratic price movements and still capture profits whenever the price continues to move in the right direction.

Why Forex?

Are You Trading Forex Or Are You Gambling?

There is a very awkward reality many traders need to face; they may not be trading at all!

Yes, certainly, there is an element of gambling. Or some may say it is flat-out gambling.

I guess I couldn’t disagree according to the definition.

The Oxford dictionary definition states:

The action of gambling money on the outcome of a race, game, or other unpredictable event.

However, I would class myself as a trader and not a gambler although I’m sure many would disagree.

I would say that after consistent gains there must be an element of predictability, right?

Forex requires a strategy, proper risk assessment, and management, yet many believe it is nothing but trying to play chances.

This creates an incorrect approach that remains embedded in their psychology and one that is difficult to accept and overcome to become consistent in gains.

Anyone can learn how to leave such a mindset. But it requires them to swallow their pride remove the ego to realise it. Don’t worry! You are about to learn how to judge your trading mindset and correct it.

How Does A Gambler Think Forex Works?

Because of the speculating nature of trading in itself, many see it as random.

It is easy to dismiss Forex as just trying your luck at predicting, and that is what draws the idea of similarity with gambling and more likely excitement and getting rich quick!

A trading gambler sees indicators and charts as measures of likelihood instead of data, so they believe that everything is left to chance. To them, a strategy is pointless in a seemingly random industry.

As such, risk management is something they do not take into account, and why would they? It would be akin to using a shield if you do not know where the strike is coming from.

For trading gamblers, Forex is more about using assistance and luck than studying, and it is easier to get on that train than taking responsibility and making a real effort to apply and learn.

How Should A Forex Trader Think?

Now, many read the previous paragraph and nodded, the idea is obvious, but others saw their eyes open. The truth is that many traders, even those with positive numbers, think that way.

So, how should someone trading Forex see the market?

Well, the chance is always a reality. You cannot ensure that a strategy will yield a 100% chance of winning, but risk can be curbed through many methods.

Capital preservation is key

Is Forex Trading Classed As Gambling Advice

Good Forex traders realise that studying price movement and coupling market sentiment, along with fundamentals like political and economic events, is helpful for success. For real traders, Forex is a market of demand and supply, and those pinch-points are what I look out for.

In the end, you are trading a type of commodity that others want(to speculate on), so the market itself will inform you about your chances for trade depending on its situation and conditions

With that in mind, successful Forex traders design their strategy understanding how risk plays a part in trading, and they work around it through studying the market for indications in direction and remain patient for the correct conditions to present itself.

Is Forex Trading Classed As Gambling Money

How Can You Leave Your Old “Strategy” And Embrace Real Trading?

All mistakes can be fixed by studying and taking trading as a serious career. That is why finding the right source of knowledge is critical.to understand the basis of risk and working a strategy—or if you are starting out from scratch— The Able Method course will certainly help you become the best trader you can be.

Is Forex Trading Classed As Gambling Winnings

Through consistent effort and perseverance, you can be sure that you will get to the necessary point to make consistent gains Forex trading.

Is Forex Trading Classed As Gambling Losses

I know, I was once in your position! Do you want it bad enough?

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