Forex trading vs gambling

The Difference. In Forex, you can have both investors and gamblers. There are people who get in the market without a clear strategy, hoping to “.
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Trade Forex with top rated broker eToro , which has been selected based on its high rating and your location. When Trading Forex Becomes Gambling. Forex Trading Articles. Last Updated March 27th Without A Forex Trading Strategy You Are Gambling Before we dive right into how trading can become gambling, we should just clarify that there is a clear difference between the two and they are not interchangeable terms. Find out more here or read to the end of this article At what point does forex trading become gambling?

Chasing losses Chasing losses is one of the most common ways people gamble on the forex market. The trader makes a loss closing the position at 1.

Trading vs Gambling: the Real Difference - Orbex Forex Trading Blog

What are the signs of gambling? Here are some of the most noticeable: Socially isolated. Their addiction has reached the point where they are no longer talking to their family and friends. Finances are a mess.


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They may have lost a large amount of their money on trading, perhaps even to the point where they have lost their savings and may even be asking people for more money to continue gambling. Lack of sleep. They are spending all their free time gambling to the point that they rarely sleep. Thinking about their losses or the idea of regaining what they lost may be keeping them awake. Not caring for themselves.

Aside from not sleeping, they may not be eating enough, taking care of their hygiene or their home. Emotional problems. This can take the form of anxiety, anger issues or even depression. Trouble at work. They may perform badly at work, have issues with colleagues, miss whole workdays, be frequently late, and they may even attempt to gamble while working.

Combine their addiction with other addictive behaviours. They may start drinking heavily when gambling or involve other illicit substances. They are unaware that they have a problem. They believe that their behaviour is completely normal. To them, what they are doing is forex trading, to everyone else it looks like forex gambling. They are uneducated in forex trading. How to avoid forex gambling First and foremost, if you have a history of addiction, specifically gambling, it is probably for the best to avoid forex trading or any other form of trading for that matter.

Though it easily can become gambling when you do not have the right mindset.

Trade Like a Casino for Consistent Profits by Adam Khoo

There are obvious signs. If you are concerned you or someone else is addicted to trading, look out for the signs of addiction. Real traders set themselves goals and never enter the forex market blindly. Trading forex requires an education. Gambling involves pursuing a return on investment that is well beyond the amount of effort put into the act. Although there may be some mathematical logic to it, price patterns and analysis are far less likely to play a role.

Success in gambling is overwhelmingly based on luck and chance rather than skill, as games of chance rarely offer the opportunity to develop the skills needed to generate consistent returns. In this regard, unsophisticated forex traders have a lot in common with the casual gambler. For example, the novice or not so savvy trader might start trading the forex market without ever having developed a well thought out trading plan.

The World’s Biggest Casino – Forex

Basically, these traders make up the gamblers of the forex market that essentially just make bets on the direction of the forex market. Often, such traders will eventually wind up losing some or all of their trading funds as they pay for the entertainment of trading in the forex market. Log in. Apart from the technological advancements and enhancements, you can also use a human mentor for your trading. Would the casino allow you to bring a mathematician with you on the casino floor to count the cards on Blackjack?

1 The Forex Trader Vs The Forex Gambler

In forex trading, there are almost no limitations to the way you trade, what tools you use, and how you behave. Moreover, on your trading journey, you can meet plenty of professionals, financial experts, etc. Nevertheless, gambling can also be profitable. As I said, you can learn to count the cards to win the Blackjack, or you can learn how to develop a statistical edge to win the bets in horse races, however, in the long run, the casino always wins and even if you find a loophole in those casino games, you risk being kicked out and get banned from casinos.

In conclusion, Forex Trading can be gambling if you treat it like gambling. If you have no plan, no strategy, or no systematic approach to the market, and you rely solely on luck, then the outcome will always be a loss because you are trading against the big guys.

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Those guys do not only have an overview of the market as such, but they also know the behaviour of the mass people and the big guys that I am talking about here are the big banks. So in order to win over those big guys, you have to think like the big guys.

You have to be willing to take the small losses, to be able to take the big wins and thus ensure profitability in the long run. It is a long and lonely road towards consistent long-term profitability in Forex Trading, which demands a lot of consistency, discipline, and dedication. And just like any other occupation or profession, in order to be the best at Forex Trading, you have to be willing to sacrifice the sweat, blood, and tears in terms of learning to control your psychology, manage your risk, planning, testing, re-strategizing and so on.

The process is long but the good thing is that you have all the available tools, resources, people, and companies that will support you along your journey and it is up to you how much of yourself you are willing to dedicate. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies.

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Earning living as a trader

Is Forex Trading gambling? When we look at forex trading in general, from the rookie point of view, we are able to see that the basic process of Forex Trading is almost identical to gambling: Money This is clear and straightforward. Risk As the game goes on, the market or the spinning table of roulette performs itself and the outcome decides whether you lose money or you win money. Emotions Throughout the game or the trade as well as in the outcome there are a lot of emotions involved. Why is Forex trading more than gambling?