Is Forex Trading Gambling
If you try to trade Forex with no discernible plan and with no defined strategy, then the answer would have to be: no, trading Forex is basically no different than gambling. You can get lucky for a while, but long-term it’s an absolute certainty that you will lose your money. Professional Forex trading is all about habits, and the first step to changing your habits from a gambling trader to those of a pro trader is by determining whether or not you have a problem. What gives Forex trading a bad connotation is when people treat the Forex market as a casino. It's also my hope and prayer that through my trading and programming skills, I can be a blessing to others. Is Trading the same as Gambling? The Potentials of Automated Forex Trading.
A common question currency traders face is, “How is trading Forex any different than gambling?” After all, the premise is the same. You’re risking money on an unknown outcome with the hope of winning more money back.
What is gambling?
It’s a fair question, but first of all people have to define what they mean by gambling; if we assume that gambling is risking something in order to gain a reward, then people gamble everyday of their lives. If you eat at a restaurant on somebody else’s recommendation, you’re risking money on an unknown outcome based on what somebody else has told you. Every time you take the car out for a drive, you’re accepting that the benefit of the trip outweighs the risk of a car crash.
People obviously tend to have a much more simplistic view, and what they really mean when they talk about gambling is the person who bets on horses or football matches and generally, consistently loses money. From here on we will use this fairly narrow definition of gambling.
Is Forex any different?
If you try to trade Forex with no discernible plan and with no defined strategy, then the answer would have to be: no, trading Forex is basically no different than gambling. You can get lucky for a while, but long-term it’s an absolute certainty that you will lose your money. The kinds of people that trade Forex that way aren’t treating it like a business, and it’s incredibly naive to think that you can make a living that way.
Trading Forex as a business
A professional trader can actually make money as consistently as somebody who earns a salary if they know what they’re doing, but there are a few requirements that a lot of wannabe traders haven’t yet undertaken in order to get to that stage of success.
You absolutely have to approach your trading as a professional business, work hard, put time in and be dedicated to it. You must keep detailed records of your trades at all times, you must be up and ready to start as if you had a boss to report too, and you must make sure you have a thoroughly tested trading strategy to follow in order to make your trading decisions.
Developing a trading plan
A detailed trading plan is generally the difference between failure and consistent success for a trader. Your plan must include everything, from your strategy, to what time you start and finish each day. Every single move you make in the market should be planned beforehand and based on research and study, so you know every move you make is a logical one with a positive expectation.
The biggest barrier to long-term Forex trading success is the psychology of greed and fear that affects every single trader at some point. If you trade without a plan, you will without doubt end up making decisions based on emotion rather than logic, and there’s no way you can succeed that way. If you have a trading method to follow, then fighting the demons of fear and greed becomes infinitely easier and aids your trading journey immeasurably.
Conclusion
Is Forex Trading Gambling Reddit
Is trading Forex the same as gambling? It can be, but the choice is yours. If you’re willing to treat it like a business and put the work in, you can take the risks away and make money just as consistently as anyone else. It’s all up to you.