Forex trading is not gambling, nor is it like gambling, however, it can be considered a gamble in the sense that markets act at random, and it may be difficult to speculate correctly, and No, forex trading is far from a regular gambling game. You are in control of your odds if you study the market properly. If you follow the rules of forex trading, you can save yourself from 8/11/ · Uncertainty. One of the most significant similarities between forex trading and gambling is the uncertainty of making a return on the money invested. The forex market is There is no clear answer to the question, “Is Forex trading gambling” because it depends entirely on the background of the person who answers this question and their market 31/10/ · Well – in and of itself Forex trading IS NOT GAMBLING. That is because all you are doing is speculating on currency pairs. BUT There are many mechanisms around the ... read more
But the opposite is true because it is precisely in this aspect that they are diametrically different. In the end, we could spend long hours arguing whether this is or is not the case, but let us rather look at the whole matter from the practical point of view. Let us present some examples that will make you believe that Forex is not a gamble. Probably everyone who has ever spent some time coquetting with gambling has probably encountered the famous French roulette unlike the American one, it has only one zero on the playing field.
Therefore, if we take into account the theory of probability , then we find that the playing area consists of 37 numbers including zero and the player gets a payout in the ratio of 36 times the bet amount if the number is guessed. It is already clear that a player will always be at a disadvantage in the long run, as he will lose an average bet for every 37 rounds played. MarketMaker MM or DealingDesk DD are brokerage firms that, as the name suggests, are active market makers, which means that these brokerage firms normally become counterparties to trading positions that are executed by their own clients.
So if a trader earns money, then these brokers lose. This often leads DD and MM brokers to the practices used by gambling companies, and traders unfortunately eventually assume that trading is ultimately just a kind of disguised gambling. The trader has a high probability edge that tips the odds in their favor.
Whilst the trader will never win every trade, overtime their edge will play out and they will come out on top. When a gambler trades a live account with no idea if they are profitable or not, it means they are guessing and hoping they will make money and obviously all the odds are stacked against them doing anything else, but getting flogged by the markets and losing their money.
It does not have to be like that and it should not be like that. When learning to trade and becoming a consistently profitable trader there is no reason to lose money. Every dollar lost whilst learning to trade is another dollar that will have to be made back to move into overall profitability.
The traders that succeed are the traders who take their trading seriously and treat it as a business. The best businesses are the ones that use plans and strategic steps to implement new strategies and with trading it works exactly the same. You can find how to create your own trading plan here.
Forex traders are so lucky in the fact that they have some of the best demo accounts available to learn to trade with. Traders can open a free demo with many different brokers and these charts will normally move and behave in the same way as what the live platform does.
This is a super advantage for Forex traders and something that is widely underused to its full potential. This will allow you to make trades, practice your strategies and continue to perfect them until you know you are profitable, without risking any real money.
Whilst many traders only use a demo account to familiarize themselves with the trading platform before jumping onto a live account, the demo accounts can be used for much more. For serious traders looking to treat their trading like a business the demo account provides a platform to become successful. Before ever risking a cent of real money on a live trading account, a trader should know if they are consistently profitable or not. This is where the demo account can be used by smart traders.
Demo accounts can be used for full dress rehearsals for the real deal. Read about how to get free demo charts here. Before moving to a live account, traders can perfect their method and make the journey from struggling to profitable trader before ever risking a cent. Once a trader has become a consistently profitable trader, they can then take the step to a live account knowing that they are no longer just guessing and hoping. As we spoke about above the best businesses are the ones that use plans and steps to implement new strategies.
Once a trader has become a profitable trader using a demo account they should not then all of a sudden load up their account with all the money they have and start trading. On a real account there are going to be challenges to face that were not present on the demo such as dealing with greed and fear. These are new challenges that will have to be faced and dealt with. If a trader has got to this stage they know they have a method that works, and it is all about working on the mind and discipline.
Instead of loading up the account and making huge trades right from the start, you should use a step-by-step path to gradually increase your trade risk. The key with this is not to rush it and end up back at the start on the demo wondering what went wrong! If at any stage you cannot sleep or are constantly stressing about your trades it may mean you have hit your current limit and are risking too much.
Everybody has a psychological money limit and whilst this can be increased gradually over time, trying to do it all at once can cause major psychological hurdles.
Many traders try to trick their minds in to thinking they will be the lucky one who makes profit right from the start. Even though most traders have no idea what they are doing when they start out they still hold this hope that somehow they will manage to make money.
I can tell you it does not work this way and trading a live account from the start will just ensure you lose in the process gambling away your money. You may win a trade or even three in a row, but overtime you will lose what you made and more.
Start with a demo. Forget what someone tells you on some random forum and understand that whilst trading on a demo means you are guaranteed of not making money, you are also guaranteed not to lose any!
There will always be more trades and always more time to make money. Until you are consistently profitable stick with the demo and when you are ready to make the change to live account do it in stages.
Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world. Great article johno… I started a demo account and never even considered funding it. I traded very small amounts and built up from there.
I laugh when the broker keeps asking me if I would like to fund my account. Thanks to them I have never had too. I do not agree with this, I think you should make up your own mind, with trading a demo account or not. It depends on the type of person you are. I personally think that you should trade from a real account.
When you have business, like I do, it from day one real, there are no demo businesses in live. So you think you should risk real money on a live account, like most do, before you are yet to work out if you have a profitable method or not? Hello Johnathon I totally agree, I started with a demo account and didnt open a live account 2 years later.
I agree, when I started, many traders said do a live account. I did a demo and lost because I forgot to close out 2 trades. Anybody new should start with a demo. this is a very common story. You would be amazed how many people I talk to who email who have lost money trading live accounts when they have no idea if they are profitable or not.
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Many traders like to see themselves as professionals or business people. Most Forex traders do not see themselves as gambling when they are trading.
Many of these people are business people or industry professionals outside of trading and have high power job roles. When it comes to trading however, the actions that most traders take are far away from being professional and lean more on the side of a gambling.
I talk to traders everyday of the year and one of the most worrying myths and false beliefs I come across time and time again is traders think or have been told that the only way to gain solid trading experience is to trade using a live account. They think they need to risk real money even when learning how to trade. I have seen this sort of myth spread in forums and around the internet myself.
One unsuccessful trader has been told this myth and they then pass the same message onto the next trader coming through.
The new trader takes it is gospel and on the cycle goes. One problem with being a new trader is that every other trader out there seems more experienced and more knowledgeable. This often leads to the new trader taking everything another trader says on board and treating it as fact. When I ask a trader why they are trading with a real account and risking real money before they know if they can successfully make profits or not is often the same.
Whilst it is true that trading with real money brings about many different emotions that traders have to deal with and work through such as greed and fear, these emotions are only brought out when there is enough money on the line to mean something to the trader.
In other words; if you are risking a small amount that means very little to you, then the forces of fear and greed are no where near what they will be when risking greater amounts of money. This is the reason that trading with small amounts does not work and is gambling. The only time the emotions will come out and can be learnt to be dealt with is when there is enough money on the line to be significant to the individual trader.
When a trader trades in a live account and risks real money before working out if they are consistently profitable or not, they are not trading, they are gambling.
I have spoken to countless amounts of traders who have emailed telling me how they have been fleeced by the market and wanting help because they have not taken their trading seriously enough. The distinction between a gambler and a trader is that a gambler is making trades with no idea if they have an edge over the market similar to someone at the horse races. The trader has a high probability edge that tips the odds in their favor.
Whilst the trader will never win every trade, overtime their edge will play out and they will come out on top. When a gambler trades a live account with no idea if they are profitable or not, it means they are guessing and hoping they will make money and obviously all the odds are stacked against them doing anything else, but getting flogged by the markets and losing their money. It does not have to be like that and it should not be like that.
When learning to trade and becoming a consistently profitable trader there is no reason to lose money. Every dollar lost whilst learning to trade is another dollar that will have to be made back to move into overall profitability.
The traders that succeed are the traders who take their trading seriously and treat it as a business. The best businesses are the ones that use plans and strategic steps to implement new strategies and with trading it works exactly the same. You can find how to create your own trading plan here. Forex traders are so lucky in the fact that they have some of the best demo accounts available to learn to trade with.
Traders can open a free demo with many different brokers and these charts will normally move and behave in the same way as what the live platform does. This is a super advantage for Forex traders and something that is widely underused to its full potential. This will allow you to make trades, practice your strategies and continue to perfect them until you know you are profitable, without risking any real money.
Whilst many traders only use a demo account to familiarize themselves with the trading platform before jumping onto a live account, the demo accounts can be used for much more. For serious traders looking to treat their trading like a business the demo account provides a platform to become successful. Before ever risking a cent of real money on a live trading account, a trader should know if they are consistently profitable or not. This is where the demo account can be used by smart traders.
Demo accounts can be used for full dress rehearsals for the real deal. Read about how to get free demo charts here. Before moving to a live account, traders can perfect their method and make the journey from struggling to profitable trader before ever risking a cent. Once a trader has become a consistently profitable trader, they can then take the step to a live account knowing that they are no longer just guessing and hoping.
As we spoke about above the best businesses are the ones that use plans and steps to implement new strategies. Once a trader has become a profitable trader using a demo account they should not then all of a sudden load up their account with all the money they have and start trading.
On a real account there are going to be challenges to face that were not present on the demo such as dealing with greed and fear. These are new challenges that will have to be faced and dealt with. If a trader has got to this stage they know they have a method that works, and it is all about working on the mind and discipline. Instead of loading up the account and making huge trades right from the start, you should use a step-by-step path to gradually increase your trade risk.
The key with this is not to rush it and end up back at the start on the demo wondering what went wrong! If at any stage you cannot sleep or are constantly stressing about your trades it may mean you have hit your current limit and are risking too much. Everybody has a psychological money limit and whilst this can be increased gradually over time, trying to do it all at once can cause major psychological hurdles.
Many traders try to trick their minds in to thinking they will be the lucky one who makes profit right from the start. Even though most traders have no idea what they are doing when they start out they still hold this hope that somehow they will manage to make money.
I can tell you it does not work this way and trading a live account from the start will just ensure you lose in the process gambling away your money. You may win a trade or even three in a row, but overtime you will lose what you made and more. Start with a demo.
Forget what someone tells you on some random forum and understand that whilst trading on a demo means you are guaranteed of not making money, you are also guaranteed not to lose any! There will always be more trades and always more time to make money.
Until you are consistently profitable stick with the demo and when you are ready to make the change to live account do it in stages. Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.
Great article johno… I started a demo account and never even considered funding it. I traded very small amounts and built up from there. I laugh when the broker keeps asking me if I would like to fund my account. Thanks to them I have never had too. I do not agree with this, I think you should make up your own mind, with trading a demo account or not.
It depends on the type of person you are. I personally think that you should trade from a real account. When you have business, like I do, it from day one real, there are no demo businesses in live.
So you think you should risk real money on a live account, like most do, before you are yet to work out if you have a profitable method or not? Hello Johnathon I totally agree, I started with a demo account and didnt open a live account 2 years later.
I agree, when I started, many traders said do a live account. I did a demo and lost because I forgot to close out 2 trades. Anybody new should start with a demo. this is a very common story. You would be amazed how many people I talk to who email who have lost money trading live accounts when they have no idea if they are profitable or not. Your email address will not be published. Forex Trading for Beginners. Price Action Trading. Forex Charts. Forex Trading Strategies.
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Is Forex gambling? When trading Forex, there are a lot of traders who approach this full-fledged business as if it were a gamble, and of course, this does not bode well. It may seem that There is no clear answer to the question, “Is Forex trading gambling” because it depends entirely on the background of the person who answers this question and their market 26/11/ · Is trading gambling? Quick answer is; yes it is the way most people trade. Many traders like to see themselves as professionals or business people. Most Forex traders do Forex trading is not gambling, nor is it like gambling, however, it can be considered a gamble in the sense that markets act at random, and it may be difficult to speculate correctly, and No, forex trading is far from a regular gambling game. You are in control of your odds if you study the market properly. If you follow the rules of forex trading, you can save yourself from 31/10/ · Well – in and of itself Forex trading IS NOT GAMBLING. That is because all you are doing is speculating on currency pairs. BUT There are many mechanisms around the ... read more
From your post, that means buying a property with the aim of selling later is gambling. Author Recent Posts. The following points would give you the crux of this article. And oh, there are risks everywhere and in everything we do. of course he is not sure if all will be sold, perhaps some will be rotten and that is his loss. On the other hand, the professional Forex traders or people with knowledge of the financial markets must answer negatively to this question.
Trading Lessons. Facebook Twitter Youtube Linkedin Instagram. If one has learnt forex trading carefully, he does not doubt profit because by mere setting his eyes on the chart,he can easily see that here profit is a is forex trading gambling case because the chart itself shows that before he even launches a trade, is forex trading gambling. Stock Exchange Trading Hours Which Forex Broker Accept Paypal? Avatrade Exness JustMarkets Oanda BDSwiss Hotforex Pepperstone FBS OctaFX GoMarkets Menu. New York Stock Exchange. this is a very common story.