Hillarious! Broker statements, insults all around whether FX is gambling…
It is the negative connotation associated with gambling I guess is the problem. Let’s have a thought experiment. If I entered a casino as a professional card counter determined to clean the house. Am I gambling or I merely attempting to rip the house off? Many people get thrown out of casinos for card counting.
If I enter the casino without any objective other than blind faith I will some money, then I am gambling my money hoping to get lucky. Gambling can be employed as a strategy in any scenario. Trading assets be it a house or FX or stocks can be a gamble or calculated attempt to make a gain from buying and selling an asset. So it is a non-argument.
Secondly, it is the presence of leverage in the FX market and the microseconds the market is being made in that sweeps FX in to the territory of Gambling. To most it is inconceivable how one could buy an asset an look to profit from 1/10000th of price change (absolutely fair) arguably it is very hard to make a reliable logical prediction on the best possible price. That level of volatility doesn’t really exist outside of the financial markets.
Let’s rewire the discussion. Presumably, I am friends with Mario Draghi and he had told me 6 months before that a QE bond buying program was going to be approved for the Eurozone. I then took 1,000,000 EUR cash and sold them for the equivalent in Dollars knowing the fundamental effects of QE will depress the Euro am I gambling? Not really, I Know the outcome, granted Draghi may change his mind but that is the risk on my decision. The absence of leverage essentially means any loss is manageable.
How is this different from buying house in an area that is known to hold value against buying in a slum and gambling your savings? How is it different from buying the stock of a company based on a solid performance and buying the stock of a company that your buddy told you was good and gambling your life savings?
To conclude it was a non-starter argument. The key difference between gambling in markets and participating in buying and selling is the availability of information or the unavailability depending on the participants sphere of influence, operational knowledge and market knowledge. In the absence of this you are no doubt gambling. There is nothing wrong with gambling as long as you are comfortable with it. Likewise there is nothing wrong with trading if you have the knowledge for it. Are they the same? CERTAINLY NOT! END OF…
Please stop posting statements, etc. It is embarrassing. As a someone who is in a brokerage, some of the most successful traders started with on average 10-20k our least successful clients have usually in excess of 100k and have been successful in other areas of life and don’t trade usually for profit. Show me a balance of 10k - 100k or even 50k, you have my respect. Beyond that save your breadth. (Sorry for the harsh words) and myfxbook is a load of rubbish not only does it hold fake accounts but also if you move money around or change brokers or hold multiple accounts, gains can’t be accurately calculated and the ability to customize periods also has limitations to a show of real consistent performance. Even the largest hedgefunds can’t show consistency over time as investors join and exit the fund, they can only paint a picture of performance so not worth publishing your private information on public forum unless you have an agenda.