Are You Gambling or Trading? Think about this.

[AwarenessForex]

Originally Posted by AlchemistX

Seriously though, when you take into account what is required to become a profitable trader, it is a far cry from gambling. First you have to educate yourself, then you have to follow/develop an effective strategy over a long period of time. This takes discipline and a lot of perseverance. Hardly the traits of a gambler.

Risk alone does not make an endeavour, whatever it may be, gambling. It only becomes gambling when a positive outcome depends on luck. When I trade, I am taking a calculated risk. Therefore, I am speculating not gambling - big difference. Obviously I don't know what the outcome of any one trade will be, but I have a positive expectancy over time.

Trading involves risk, but that in itself does not make it gambling. It is only gambling if you rely on luck. A successful trader takes calculated risks. They may not know what the outcome of individual trades will be, but they know they will come out ahead in the long run. This is because they follow an effective strategy, and because they took the time to learn.

I think it's more of the negative connotation that comes with the word "gambling". I would say clinging onto a j.o.b. is a gamble. We all start somewhere, but it is amazing how most people value security over a chance at unlimited income. Professional traders tend to bet on sure things.

Edit: really the markets are not all that difficult to trade. Chasing all those opinions of other traders is what causes a lot of the confusion. As one other poster pointed out, just learn the basics; the rest you should be able to figure out yourself or find someone who has figured it out. The less you know, the better chance of you seeing what the markets really are doing, and trade accordingly.

[AlchemistX]

Originally Posted by AwarenessForex

I think it's more of the negative connotation that comes with the word "gambling". I would say clinging onto a j.o.b. is a gamble. We all start somewhere, but it is amazing how most people value security over a chance at unlimited income. Professional traders tend to bet on sure things.

In today's economic climate, relying on a job for your income is risky and far from secure (unless you're a cop or a teacher). Professional traders take high probability trades and use good money management. This gives them an edge, so they are consistently profitable regardless of the economic climate. They don't have to worry about being made redundant either.

[Irene Ivory]

Forex trading differs from gambling for instance in casino, as there markets behavior reflect global economic and politic events and if to understand correlation of events and direction in which markets go than it is possible to trade rather successfully, what is not possible in any type of casino by definition.

[AlchemistX]

Originally Posted by Irene Ivory

Forex trading differs from gambling for instance in casino, as there markets behavior reflect global economic and politic events and if to understand correlation of events and direction in which markets go than it is possible to trade rather successfully, what is not possible in any type of casino by definition.

This is reflected in the charts, where you can see from the way price behaves that it is not random. Support and resistance, trend lines etc. Something is clearly driving the market, whereas with gambling everything is down to chance.

[AwarenessForex]

Originally Posted by AlchemistX

This is reflected in the charts, where you can see from the way price behaves that it is not random. Support and resistance, trend lines etc. Something is clearly driving the market, whereas with gambling everything is down to chance.

Almost. There are games like blackjack and no limit poker where you can have a strategy that gives you an edge. Most other games like roulette, slot machines, etc remove the edge from the player, making it impossible to win over repetitions.

[AlchemistX]

Originally Posted by AwarenessForex

Almost. There are games like blackjack and no limit poker where you can have a strategy that gives you an edge. Most other games like roulette, slot machines, etc remove the edge from the player, making it impossible to win over repetitions.

It's not gambling if you have an edge

Take professional poker players, for instance. They are not gamblers, because they rely on skill.

[Irene Ivory]

To a large extent movements of Forex market can be predicted with the help of fundamental analytics, so I would not say that it is the same as gambling.

[arkasha]

Folk's where is this gambling thing coming in from! Gambling is what we do in a casino! The word gambling means you have a 50/50 chance at what your doing! Forex trading consist of trading when there is something to trade! there is no 50/50 in forex, there is only your knowledgeable decisions of why you are getting into a trade! Why would you ever get into a trade knowing you have a 50/50 chance at wining! a 50/50 chance at winning in forex, means you have a 95% chance of loosing, does anyone like those odds! Now, a 50/50 chance at gambling in a casino, means the actual thing, 50/50 chance at wining! But in forex its different, more then not you are loosing, so in all actuality gambling doesnt exist in forex because you are wrong more than not!

[AwarenessForex]

Originally Posted by arkasha

Folk's where is this gambling thing coming in from! Gambling is what we do in a casino! The word gambling means you have a 50/50 chance at what your doing! Forex trading consist of trading when there is something to trade! there is no 50/50 in forex, there is only your knowledgeable decisions of why you are getting into a trade! Why would you ever get into a trade knowing you have a 50/50 chance at wining! a 50/50 chance at winning in forex, means you have a 95% chance of loosing, does anyone like those odds! Now, a 50/50 chance at gambling in a casino, means the actual thing, 50/50 chance at wining! But in forex its different, more then not you are loosing, so in all actuality gambling doesnt exist in forex because you are wrong more than not!

There is no such thing as a 50/50 chance of winning at a casino. Each game is carefully designed to make the player's chances of winning at less than 50%. They remove the mathematical edge from any game that you play heads up with the dealer. They also take additional precautions like rotating dealers and bringing in new card decks or dice, so no 'streaks' or 'card counting' is minimized. So the dealer, regardless of the number of repetitions, will end up on top.

The only way to win consistently in a casino, is to play a game where you play against other players (poker). In this way, the casino only concerns itself with the rake, which it makes regardless of which player wins.

In forex, the coin toss method can be marginally successful initially, but it is the spread and commission that makes those methods less than 50% chance for trader, and thus the trader will lose over time (many repetitions)

[traderwannabe]

Originally Posted by Jonay

gambling is based on emotions, but emotional trading will screw you every time

Gamblers more likely depend on luck.