Forex trading business and gambling has very thin line and only those who this difference and do not breach that thin line will survive in this highly risky forex market to make money.
It is gambling in one aspect- you never know what the crowd will do, only you can guess where the trend will go. Is there have no such a system which can give that kind of information. But your percentage can go higher with the news, trends, history, analysis… How can you made profit with gambling machine, with red and black button? Luck? Only?
In Forex, you must have hundreds of pips to give, cause is the life here. If you don’t like it, go trade treasury notes…either way!
Forex trading is any day different from gambling but if you start putting money into the Forex market without any strategy, you will land up doing gambling only.
Forex trading needs awareness about the markets and proper analysis needs to be done by the traders before holding positions. If a person invests his/her money into the forex market and makes use of serious techniques and tactics, it would also get differentiated from gambling. :58:
I have thought about this very question. My answer is this; It can be both for you, gamble or investment, depending on your view of it. Treat trading as a business and also incorporate proper money management, and you will see the sharp contrast, you’ll have a better chance of success.
Alex makes a good point, here: it’s all too easy (and I’m probably no less guilty of this than anyone else, here) to assume that all aspiring traders and newcomers to the BabyPips forum have the same intention of eventually making a full-time living from trading. The reality, of course, is pretty different: for many people it’s intended only as a form of online relaxation or hobby, even if they’d prefer to earn some money from it than to lose, and to some it’s never really intended as anything much different from a gamble … and (“note to self”!) actually we do well to remember that.
Forex, in particular, among trading media, is particularly open to attracting gamblers, partly because of the ease of availability of high leverage through counterparty market-makers who actively and loudly present themselves to a largely uninitiated public as “brokers”, because their own business model revolves around exploiting those with a gambling mentality.
For me it is very similar. Here and there is necessary to know and to feel the moment.
I’m not a gambler but … is it so necessary to feel it? I thought that feeling the moment comes with practice, and practice comes from some theory? hah
Well I feel trading is not like gambling, if you are clear what you are doing! Those who believe forex trading to be gambling will end up getting same long term results as in Las Vegas. But if you treat forex as a business with proper risk and money management strategies, you certainly have better chances of success.
Forex is just another instrument to speculate through, despite if you win or lose.
Trading is a form of speculation, which is gambling, albeit more controlled than other speculative mediums. The physical aspect of trading is easy, hence why many beginners are able to make money trading a demo account. but once you switch to a live account, in theory nothing changes apart from your own psychology.
gambling is a lot easier on the mind.
You have fixed bet increments and you have to wait until the event is fully played out.
In trading you can repeatedly buy in an uptrend, get scared when there’s a small retracement and close out at a small loss and continue to do so and keep losing money, despite being right every time!
2 Likes
Forex trading is different than gambling as forex trading business involves analysis, calculations, risk management and a little bit of luck too… however gambling is truly based on luck where you either looses or win on your bets. While in forex trading we can also minimize our risks of loosing by effective money management.
In trading we have complete freedom of expression and can do anything we want. In life we often feel constrained.
We should find another creative outlet.
In the market you need rigid rules and a strict adherence to them.
Not lofty ideas that are not properly thought through, that’s where the gambler plays their game.
Forex trading is way more different than gambling if you treat forex as a business and makes a systematic approach with proper money management and discipline. If a trader just relies on luck and gamble with his money he will have the long term results same as a gambler do.
Professional Gamblers use the same systematic approach, money management skills and discipline… a business.
The HUGE difference between a Casino and Forex is you place $5000 on black of a Roulette Wheel in Vegas and it comes in Red… You lose $5000 no more, no less… even if the lights go out… your risk is locked.
You place a trade in Forex and the lights go out… your loss can be devastating… more than you have in your trading account…more than you have…period. Ask anyone who was trading during 2016 Swiss Franc unpegging… Stop Loss or not…
Try leaving a trade open after Friday market close… currency re-rate… global event over the weekend and you will find even a stop will not mitigate your loss… So FX is far more dangerous than Gambling…Think about it…
3 Likes
There are matches between gambling and forex. The casino / broker always wins 
Yes it can be akin to gambling, but like every thing it wholely depends of your perspective as well as approach.
it has been shown time and time again random entry using a timed exit with stop loss money management, produces better results as apposed to a system. “a gamble”
the word “system” is a gambler’s term. in reference to beating the house. laying technical or fundamental analysis over it, gives the user a conceived form of control, therefore removing the “air” of gambling.
win/loss and probability in the reference to money management is used in gambling. and has done such since before charting was even invented. trading has drawn from gambling many of its forms of risk management. So it is very easy to draw the conclusion it is a form of gambling. because at its core it is
1 Like
I don’t know of anyone who has proven to have a strategy that makes money in the long term. To me this means that Forex is gambling
So many people do not understand that there are two types of gambling - one in which the outcome is uncertain but that outcome can be affected by your skill, and the other on in which the outcome is uncertain but there is no correlation between any skills you may have and the outcome.
The one is like poker, the other is like the lottery.
So there is no point arguing over whether forex is gambling or not until it is agreed what sort of gambling. For pity’s sake stop this pointless argument until you can even understand it.
1 Like
What? lol
It is the oppisite of gambling. In gambling, the house always has the edge - the house is a business and the business would not operate without this edge, so the person playing against the house is always going to be a gambler (unless cheating).
With trading, you can become the house by creating an edge on your trading plan.
1 Like