In order to understand where the Forex gambling is going and what it is about, we must go to the definition of gambling, since the market is still the same, but in this case the trader faces other circumstances.
The world of gambling
Gambling bases its way of trading on risking money for a prize or something of monetary value, but the result will be by chance.
Then there are only two possible endings, one in which the person earns money and in the other loses money.
Gambling can be carried out in different types of situations or games, such as lotteries and scratch cards, blackjack, sports or event bets and in our case, Forex.
Now, have you ever asked yourself if gambling works? Well the answer is no, and you need to know if you are doing gambling or if you are not.
Forex gambling
We can see the Forex gambling as a way of trading used by some traders; however it is not the correct or usual way in which traders trade their products, since it is considered as something messy and without discipline.
And why is it seen this way?
This is because Forex always talks about how important it is to have a trading strategy and having a way to take care of your capital and because gambling depends solely and exclusively on luck, then it is not recommended.
There is the case in which the traders consider the Forex trading as gambling, trying to make out of this something that is not.
When you are doing gambling?
Gambling can be carried out in different types of situations or games, such as lotteries and scratch cards, blackjack, sports or event bets and in our case, Forex.
Now, have you ever asked yourself if gambling works? Well the answer is no, and you need to know if you are doing gambling or if you are not.
- Is Forex gambling when you trade without a strategy.
- Is Forex gambling when you don`t analyze the market and you just try to trade whenever you want.
- Is Forex gambling when you don`t stay with just one broker and you are just trading with different brokers without focusing.
- Is Forex gambling when you let yourself be dominated by your emotions
- Is Forex gambling when you don`t use a demo account to understand the market in a better way and you just get in the waters without knowing a single thing.
To be a real trader you must know that the knowledge that you have is the most important part of everything, so don`t hesitate about learning.
Now we will show you some differences between gambling and trading:
- Emotions and psychology: In the case of gambling we are facing the addiction to it and the need that at some point the person can take the jackpot.
Gambling does not require more analytical effort than deciding what to bet on, however in the case of Forex trading we find ourselves in a place where emotions can occur in a slightly less intense way where a large part of things depend on you and the way you analyze the situation.
The emotions in Forex trading should be set aside from the beginning, since they can really affect the way in which people carry out their operations.
- Earnings: In the case of Forex gambling and Forex trading, people look for money, and ultimately more money is obtained from the techniques, tactics and strategies compared to the mere fact of betting on a single movement.
Gambling can produce great profits that may not be repeated.
- Strategy: None of the previous rations means that in conventional Forex trading no money is lost, since it is not so, in fact most traders lose a lot of money, however this does not mean that the use of established trading strategies is a mistake.
Trade strategies give the trader a north and an objective, as well as teach him to wait for the arrival of certain factors that should be reflected in the market so that the trader can proceed to bid.
The strategies used in the market may vary and depend on the type of trader that is going to use them and in what season of the market is being applied.
In gambling this does not happen because everything will depend on the moment in which the trader decides to do it, without a deep market study or Forex psychology analysis.
Summary
Gambling is a different way to carry out Forex operations and will depend clearly on the way in which the trader decides to operate in the market; however it is not the same as conventional Forex trading. Gambling is not the right way of doing thing, and simply as it sounds, is gambling when you are trading without discipline.
