In mt5 forum we are now seeing this that many traders are comparing forex with gambling but i want to tell them that gambling and trading is different.Gambling is a fun thing and many people gamble to enjoy but forex trading business is not like gambling.Forex trading business is an international business and many people lead there life by working on Forex trading business also this business has been submitted by religion so do not compare Forex trading with gambling.
gambling is quite different from Investment trading, irrespectively, once you bet you have no option for saving money in opposite results. Forex runs over market analysis and its technical interpretation, similarity is minor, both have two options like head and tell, here you see buy and sell, but all fenomenon goes through probable market behavior, forex market pertains to global macro economies and finential institutions and banks have major roles in bullisha nd bearish behavior of prices, in casino, only players perform through gambling tools and get final results in mean time, but here we have time to analysis for broad anaysis which is certainly not like final results and have side retrachments time to time. Betting is out of side action, we have choices for changing actions and actions wholly comprise subsidiary movement. It’s safe side and risk recovering point in forex.
Of course the 2 above are their opinions and we would need to know their definitions of gambling. When traders compare forex to gambling, they usually they mean that you need a lot of the same basic qualities to succeed and lack of to fail generally. The physical part of betting or investing is generally the same and both are done based on a strategy, using proper money management excersicing patience and discipline.
Their are good gamblers and bad, same as forex; good traders and bad. There are people who make their living gambling just like people make a living trading forex. Their are full time gamblers and partime gamblers; full time traders and part time traders. There are professional gamblers and non professional gamblers; full time traders, part time traders. Both are long term ventures and if when we say investing we’re talking about forex nothing is guranteed.
Yes, you’re right, forex trading is a business, gambling is not. But if there is one thing that forex and gambling have in common, it’s taking risk. Just like any business, we should also take a risk in forex trading.
All business, as a matter of fact all things from start to finish in life have risk. With some things you can eliminate risk. Example don’t put a loaded pistol in your mouth and squeeze the trigger. So the question is when risk can’t be eliminated such as having losing trades in the forex, how do we limit risk. Again if we use forex we would limit by having a strategy that puts more things in our favor when trading: trade with the trend, momentum on your side, beginning of a cycle, use proper money management work on keeping our emotions in check.
Retail forex is nothing BUT gambling. (Look up “spread betting”)
Why do people continuously try to convince themselves and others that it isn’t?
Your trades aren’t part of the main market, they are warehoused at your broker. Like sports bets at a casino. You can hope your horse the Euro goes long, or play short to lose. The only difference is, you can change your bet midstream. If you have a running winner you can take some off. Or you can double down. Or you can just exit the bet altogether if it’s a loser. Maybe you have very high risk tolerance, and will let it run until it pays. Those options can all be decided after the fact, which if employed properly can make you a winner.
And the poster above that said the trader is the casino is not seeing things as they are.
Your broker is the casino. They take your bets. The stack your bets against others in the house, and they charge you the spread to place your bets.
The Wall Street Journal constantly refers to traders “placing bets”. You “win” or “lose” a trade. You also “win” or “lose” a bet. If you opened a store that sold soap, and turned a profit, you wouldn’t refer to those earned profits as “wins”, they would be “sales”, and be recorded as such in your books.
The sooner you come to grips with what this truly is, the sooner you will be able to put that understanding in practice, and maybe actually “win” some money.
There is no justifying this as a “business”. It’s a market derivative, and has no value other than to give a market maker/casino more places to sell bets.
I guess like you they have an opinion. Im probably not as experienced as you with sports betting and trading, but in my experience trying to compare a horse bet to a retail trade is the same as saying an orange isn’t really an orange, it’s an apple see its round. Business or not, risk or gamble. . .thanks for sharing your opinion
Quite often the decision is being influenced by religious beliefs where gambling isn’t considered acceptable, so they try to justify it as a business.
I also think that most new traders are completely unaware of what they are actually dealing with. They are led to believe that profits are obtainable by following some sort of method, and they just need to find the right indicator, or indicator settings, or candlestick pattern, or the right system or mentor etc. most have no appreciation of what a trading edge actually is, or how this works out in practice.
I find myself increasingly reading material written by gamblers simply because in general, they tend to be of better quality, and far more realistic and grounded in reality.
Here some helpful dictionary definitions.
Gambling 1. a. To bet on an uncertain outcome, as of a contest. b. To play a game of chance for stakes.
The business of buying and selling commodities; commerce.
The foreign exchange market ( forex, FX, or currency market) is a global decentralized market for the trading of currencies.
a facility which houses and accommodates certain types of gambling activities.
Here some differences between a retail trade and a horse bet. A horse bet is based on odds (any type of retail bet will be made according to odds) A retail currency trade is not. You can not add or change a horse bet once it’s placed, you can with a retail currency trade. You can make a pending retail currency trade you can not make a pending horse racing bet. You can bet the same currency pair on an ongoing basis, you can not with the same horse bet. With a horse bet, you have 3 winning options win show or place each are different percentages of the specific purse for that race. A retail currency trade is win or lose based on a continuously flowing market. I can go on if you want? Reaching your arm up and down although it has movement it is not the same as brushing your teeth which also has movement.
Oh ya I almost forgot here’s another definition for you. A derivative is a financial instrument which derives its value from the value of underlying entities such as an asset, index, or interest rate. A business is occupation, work, or trade in which a person is engaged.
Just because the Wall Street Journal refers to traders “placing bets” doesn’t make it so. Look at you. . .you said you looked in earnest, and never found any difference between a horse bet and a retail trade.
How much more forum space is going to be wasted on this nonsense.
This must be the umpteenth thread dedicated to this subject (most with a similar title) & if the op had the sense he was born with he’d have conducted a search first before dumping even more rubbish onto the site.
Still, it wouldn’t really be Babypips would it if the latest bunch of blissfully naïve newbies didn’t start getting their panties in a twist at the mere mention of the G word.
No disrespect to you, I don’t wear them so I can’t really say what it’s like, but seems the only people who have their panties in a twist is you and a couple of others who like you who think they’re the only ones can have an opinion or take part in a debate cause anyone who doesn’t agree with you spouts rubbish. I don’t know op so I don’t know if he conducted a search on the topic or not.
Now here’s a fact, no opinion (you can search the difference in meanings if it’s not clear); since you and the other traders who get annoyed with newbie posts that recover a subject they’re interested in; unlike like some countries baby pips is democratic and allows anyone newbies or other to ask questions, make statements, give opinions even more than once and they even encourage it. Now if you or anyone else doesn’t like it, you don’t have to post in the newbie section; you don’t even have to read the posts if you don’t want. I believe there are other threads where you and everyone like you who is annoyed with newbie posts, can go post and read in the other threads and show each other how enlightened you all are.
Now for any newbies or not for that matter, if you don’t want to ask a question because you think you’re annoying someone, your question will be treated as rubbish or your opinion doesn’t matter or count. We did not all come to the forex enlightened profitable traders where we know everything no one else knows anything; I don’t want to overstate the fact, but a lot of us started off as newbies and learned by asking questions.
As I said no disrespect intended and please except my sincere apology for not being as enlightened as you. I can’t speak for anyone else but I really appreciate your posts and even though they differ with mine. I’m not annoyed
What is that? It’s NOTHING. It’s not a true trading instrument. Oil futures. There’s a real trading instrument. If you don’t close out your order before the quarterly expiry you used to enter the trade, you’d better have a place for the delivery truck to put your new stash of crude. Or maybe you’re in J C Penny stock. The difference is, you actually OWN something.
But in forex, you aren’t buying or selling commodities, or anything else in. EUR/USD? You NEVER buy any euros. The whole idea is NOT to. How is that a “real” instrument? Your only play in the EUR/USD is to hope the value of the one you played long gains against the other half of the pair.
Key word up there in you post that should clue you in. “Decentralized”.
That means that broker A, and broker B do not share info. Why? Because retail brokers don’t even register on the radar of the real market. It’s by your definition, a “derivative”. And your definition of the term should tell you the nature of a “derivative”. It’s not an actual asset, it is the VALUE of the underlying asset. Again. look up “spread betting”.
In my post I mentioned that the DIFFERENCE between a hard bet in a casino, and a forex trade, is that you can change your bet in any number of ways, or just welch on it altogether. Which in theory, should give you an edge that you can play into being a “winner”.
Which brings me to “odds”. No, there’s not a three to one favorite for a winner, but you have a risk/reward. Those are ODDS. You are betting one to get two (or three, or maybe even change your mind and close out at B/E) that the euro might rise.
It’s not a matter of being enlightened or new to a forum. It’s about using one’s initiative & common sense.
If folks can’t work out exactly what they’re involved in right off the bat then it’s little wonder so many struggle so badly emotionally & practically.
No-one’s suggesting folks shouldn’t ask questions about gambling.
They can also debate the whys & wherefores until the cows come home, just use the search feature at the top of each page first before starting yet another gambling thread & raking over the same tired old arguments that have been covered many times over the past few years.
To be honest the moderators should step in & actively manage these replicated topics. If they merged any new threads/posts into existing ones & deleted these new threads it would save a whole lot of wasted forum space.
I quote and respond to your entire post, but you cherry pick a few phrases of mine, and omit the explanation. Hopefully anyone reading through this redundant thread will see through that, and gain a little enlightenment.
You’re up again Casey, but I’m out of innings here. I learned a long time ago that reasoning with cheese was a futile endeavor.
Have a nice time deluding yourself about the merit of your trading actions.