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ForexTools
07-03-2011, 09:07 PM
A Trade or a Gamble?

I love to trade a lot - which is of course a euphemistic way of saying I love to gamble. Although I have been to Vegas more than a dozen times I never laid down so much as a dollar bet in any casino. I have absolutely no interest in backjack, craps, slot machines or any other games of chance and I look down with disdain at the excited masses crowding the cavernous Vegas gambling halls. But deep down, if I am honest with myself, I have to admit that whenever I trade a lot I am just as much of a sucker as every hopeless loser that gives up his hard earned money to Steve Wynn or Sheldon Adelson
If you are constantly trading just for the sake of trading, just for the rush of being “in the game”, just for the momentarily thrill of being right you are gambling. You are trading without an edge, without any solid information and are therefore completely vulnerable to the random vagaries of price.
Towards the end of last year I decided to do something about my toxic addiction and created two separate accounts - one for trades that would only follow my trading plan - the other for all my trading/gambling impulses. But before I share my experience with you allow me to define the difference between a trade and a gamble. The key distinction is information. The less information you posses the more likely the chances are that your trade is gamble.
A techincal trader who only looks at the five minute chart to gauge his support and resistance points is just gambling. On the other hand a trader who looks through the hourly, daily, weekly and monthly support points, carefully calculates Fib retracement positions and only acts when multiple time frames confirm his analysis has a much greater chance of success. Similarly a fundamental trader who mindlessly reacts to the latest economic release without understanding the prior market expectations, the current price flow and and countervailing information on the other currency in the pair is also just gambling.
Notice the unifying theme? Like everything else in life success in trading requires hard work and homework. There is no magic formula, no simple 5 minutes per day method to make you money. In trading, working hard is no guarantee of winning, but not working hard is an assurance of losing, because trading at its core is a game of information and you must always be up to date on what' s gong on in the market or become the sucker at the table.
Now back to my experiment. I subdivided my trading into two accounts - one where I traded only calendar risk on a reactive basis with very disciplined entries and exit rules and strict adherence to money management. The other account was just for my whims and impulses. An interesting thing occurred. My “trading plan” account which I traded far rarely and more carefully became much more profitable and incurred much lower drawdowns. Meanwhile the equity in my gambling account bounced up and down like a hopped up rubber ball. Suddenly the thrill of “being in the game” wasn't so much fun. Like a reformed smoker who appreciates the smell of fresh air, I was no longer drawn to making impulsive trades. That's not completely true. I still dabbled in my gambling account (who amongst us can completely give up our vices?) but my need to trade constantly has been reduced substantially. The less you gamble, the more you realize how stupid it is and that has been the most valuable lesson learned so far.

Master Forex IB
07-14-2013, 06:51 PM
I love to trade avoid gamble in forex. It can be a gambling if I ignore management .I remain conscious to select lot and leverage according to the capital . Then I decide when it is safe to close positions so that it not harm my amount badly.

samuel_p80
07-15-2013, 10:18 AM
many people said that forex is gamble, i don't think so...
It right that gaining profit in forex is difficult,,but it can't be judge as gamble. it need skill and knowledge. if forex said as gamble, all business is a gamble too..
Gamble is unrealistic business, we do not know which its sources.

iukknkqo
07-19-2013, 02:14 AM
Gambling with Forex trading is sometimes about the same, when you numb trading, random transaction, then you are gambling

Master Forex IB
10-12-2013, 01:48 PM
We can not become a successful trader by doing gambling method .It is much risky that make you greedy to make money in no time. I trade in forex market . I had not much amount to gamble with , Risky trading can blow up my account if it had a possibility of high profits.,

sorafx
10-19-2013, 09:16 AM
many people said that forex is gamble, i don't think so...
It right that gaining profit in forex is difficult,,but it can't be judge as gamble. it need skill and knowledge. if forex said as gamble, all business is a gamble too..
Gamble is unrealistic business, we do not know which its sources.

I agree with you..
But trade in forex can be gambling if they just trade using naked chart...
Naked chart is unpredictable, so it turns you on a gamble...

iryna
10-22-2013, 04:17 PM
I agree with you..
But trade in forex can be gambling if they just trade using naked chart...
Naked chart is unpredictable, so it turns you on a gamble...
i think forex is a fame and trade in the same time!
its up to you what you gonna choose

Master Forex IB
10-27-2013, 07:22 AM
You can not rely on even indicators.I toink naked trading is best which enablestraders to do analysis onthe base of his expereince and market situation.In this way he will manage his trades on self base he can decide well how much he should use in trading .

UMOFX AIR
04-02-2014, 07:16 AM
I do not make gambling with my precious money .,I have to use my amount in careful manner. People who had a lot of money they can do some risky trading because they had a chance to overcome their loss in next trading. With limited moneyh I have to trade as a business.

babushkafx
04-28-2014, 08:57 AM
Trading can be considered as gambling if you don't apply any strategy to it. ( I have to notice that even gamblers try to use systematic approach to their "hobby"). You don't have to be afraid of losses, your trading system has to lay down some % of losses, otherwise your system piece of crap.

casama
05-30-2014, 06:46 AM
it is not gamble. but some trader see as gamble .they trade without analysis . we must have clear purpose for this market . if not you will lose money

babushkafx
06-23-2014, 09:22 AM
Trading is pure gambling if you don't have trading strategy and open orders randomly. My Hotforex trading yields me High profit as I don't hurry, use small lots and rare entries..

babushkafx
08-20-2014, 08:51 AM
A telling example of how to manage your trading money wisely is making entry on breaking fundamental news (NFP, CPI, etc.) or hedging your positions when you enter in flat market. Thankfully Hotforex allow me to trade on news and hedge positions, though many other brokers are only looking for an excuse to accuse you in improper use of that techniques.

orni308
12-28-2014, 01:28 AM
Forex market is not a gamble, but it depends how a trader takes, if trader trades on sheer luck then for him its a gamble and if a trader analyze various aspects of it then he could be a professional.

HundEr
06-16-2015, 11:20 AM
If you tade without money management or emotional control, Forex trading definitely becomes gambling.

Annette Ashley
04-23-2016, 05:15 PM
HundEr, you’re right to half level but I believe education is more important and if we’re not having that then we will struggle and shift our gear into gambling instead of real way of trading. I work with OctaFX broker and with them, it’s always easier for me to do things through their educational setup while there is also epic demo contest like Southampton Supreme Game, it’s extraordinary on every note with having unlimited prizes to be won for us with just been 90 minutes duration.

blueberry
06-15-2016, 08:15 AM
Trading is an art which requires skills so i think forex trading is a purely business based on calculations and analysis, so it cannot be classified into gambling.

Annette Ashley
06-22-2016, 01:36 PM
If we do it through proper planning then it’s definitely not gamble, but if we are working without any plans then we are just gambling and I am sorry but that’s never going to lead into benefits. I am grateful to OctaFX broker to guide me well through their educational setup while they also have amazing demo contest that I can participate on and get great help in terms of performance and making my life easier and far more enjoyable.

Women Spin
06-24-2016, 08:06 AM
There are alot of difference between forex trading and gambling, in forex trading we buy and sell for a reason which we came about ofter due analysis, but in gambling we just do it with the hope that it will favor us, so gambling is totally different from forex trading.

blueberry
06-24-2016, 09:56 AM
The one and major difference between trading and gambling is that trading involves proper planning and analytical works however gambling doesn't..

Hilry Canes
07-14-2016, 07:53 AM
That’s correct, Blueberry. We also need to realize knowledge and experience too is important difference, if you got that then we are trading instead of gambling. I used to be a gambler, but ever since I joined OctaFX broker, I have learned to trade and that’s with help of their educational setup which has really helped me big time and allowed me to trade with absolute ease and comfort, it has automatically increased my chances of making profits and that too without increasing in risk.

Battledoom
07-19-2016, 02:40 AM
I don't think that Forex Trading is gambling, Gambling depends upon mere luck while Forex Trading requires certain trading skills which are very important for it.

Martin Kent
08-11-2016, 04:33 AM
This is entirely dependent on how we go about things, if we work through proper manner and strategy then it would always be profitable and we won’t have to gamble. I am grateful to my broker OctaFX since it’s only through their awesome demo contest that I have been able to practice and get myself into right frame and that’s especially with Southampton Supreme demo contest with having unlimited prizes to be won, so that really keeps the thing going nicely for me.

felix
09-07-2016, 09:06 AM
Definitely a trader. I always think twice and switch off all the emotions befor making a deal. I also use 101% bonus from FreshForex broker.

Women Spin
09-15-2016, 04:52 AM
If any trader trade like gambling then he is never going to earn profit with his gamble technique. Because trading is more about analysis and learning the market. If one want to have good amount from investment then he must learn Trade first.

felix
01-26-2017, 10:42 AM
I consider forex to be trading place, but when you're working with unreliable broker it can really become gambling, indeed. That's why I prefer trading with FreshForex broker. It's reliable company regulated by KROUFR and CRFIN and I really trust them.