Without fail, one of the first comments people would make was,. Being the naive trader I was at the time, I would get a little defensive and respond with something like,. Fast forward to today…boy was I WRONG about that statement. Make no mistake about it folks, trading is gambling!

Notice a common theme? Because they want to sell you their product, of course. Because gambling is a bad thing, right?

The truth may surprise you. What is the truth? It all comes down to putting on trades where the probable win is higher than the probable loss. In other words, stacking the odds in your favor. In a previous lesson, I wrote about price action and confluence. Forex trading is the ultimate form of gambling. We get to review past price action before putting on a trade. The key is finding the right Confluence Factors that stack the odds in your favor.

All of these factors mean a higher probability that this trade will make us money, and it did. We can learn something from casinos. Then wait for the strange look they give you.

Do you think trading is gambling? Save my name, email, and website in this browser for the next time I comment. You can argue that people who do not have those skills, and there are many of them are gambling. But the few that have acquired the skills and know what they are doing are NOT gamblers. So you are not credible as a trader.

I am sorry. You should not be trading. Sorry you feel that way, Justin. Wagering of money on an event with an uncertain outcome with the primary intent of winning money — that sounds like trading to me. Every business gambles to some degree, not just the trader.

Hey Justin, If you think that way, you can say parents looking after their children and providing them with everything in theire capacity believing children would look after them in return when they will be needed and when the children ditch their parent to be in old age homes, the parent were gambling.

An entrepreneur who confidently relies on his hunch and abilities to grow a business is gambling. The investors who invest in companies and shares are gambling.

Nonetheless the very individual who is working hard to get a dream job is gambling because most of the time the aspirant does not end up with dream job or to make things worse even jobless. All of these people know nothing more than the history known to them and they are gambling with their time, money, resources. When I started Forex trading, i started with demo accounts and I traded without doing any analysis.

I ended up blowing my full account. I was gambling. It s been 2 years now and I am still in the process of learning, because I dont want to gamble. How do I do that. Not trading based on emotions, trade purely based on facts, get news updates constantly, follow mentors, research, back test. And I am able to make profit now. Those who think it is a serious business or investment venture and do everything necessary for its success, your success is guaranteed.

Good luck folks. So why do some people manage to maintain an edge in gambling, or an edge in trading? Well said, Dakao. But folks, if you can loose, it is a gamble, period! I am surprised that we are arguing over this. Tell me. If you are a trader, tell me if your results have improved from the last time we had this exchange.

You see, to become a good doctor, students are required to go to school for almost 10 years. Well, why do people think that trading, which when done well can make you a billionaire, does not require any formal training? In fact it does, but nobody will provide that training because once you are good at it, you keep the knowledge to yourself. And if you were right then all the investment banks that have trading desks are also gambling. Is that what you think?

How do you not realize that any human endeavor at which one can become better over time is not gambling? If you have not, please do. And once you have. Sit down, get yourself a good computer and start learning to read price movements.

Get familiar with Elliott Wave theory. Develop some good common sense. If you are really serious about it, you will soon develop a different mindset. Until you do though, I am afraid you will continue to lose your hard earned dollar because in fact before you get a serious training you are nothing else but a gambler. And those who are not in it to gamble will take your money. Well Justin, i want to ask you, what is the wrong in gambling? then what makes you want to compare forex with gambling???

money changer is gambling? buy and sell of currency is gambling? there is a lot of difference between Forex and gambling. Investing, trading, to me is not gambling, as you own shares in the company concerned. You put your money in a Bank or Building Society and get a fixed rate of interest.

You invest in the stock market hoping to make more than in a Bank or Building Society knowing that you are taking on greater risk. Investing in a share one takes into account the fundamentals of the company, how well it is run etc.. Gambling is like E G throwing a dice or a game of roulette, where you have no control at all. If we did not have Banks and private people investing in companies, our civilisation would not be so far advanced. Alex, this post is about trading, not investing.

Those are two very different things, especially when referring to fiat currency. hie Justin , what Alex is simply trying to tell you is : gambling is done on the basis of probability whilst forex trading is done on the basis of facts [technical and fundamental analysis.

Is there anyway around this? I have one important question regarding Forex Trading. Elias, the point of this post is that you need to trade like the casinos by stacking the odds in your favor. Trading is not gambling, it is possible to make money in the market, only those who know the market how it is moving.

the market always not work in the same way some time you have to away from market. i know that, I done that, I made money. It seems you missed the point of the post, which is to trade like a casino by stacking the odds in your favor. I agree with you Justin.

This is a great post. Easy to understand even for the layman. Thank you. The similarity to gambling is that the outcome of one individaul trade is unknown and ramdom. You can try to increase proabilities with more confluencies, but it is still ramdom. Serious traders make money via a series of trades with proper Risk Reward.

Absolutely true article. There is no way to guarantee your trade will be a profit. if some body open a restaurant. and he expect people to come to him. is he gambling,if he is. it is means every thing in our life is gambling. forex needs skills so its akind of a jop. If you define gamble as taking on risk in the hope of a desired result, then yes, opening a new restaurant is a gamble. Most life endeavors are gambles if you stop and think about it. Yes, absolutely!

It is a big gamble in running any business. I am a business owner myself and I have made a huge lost before in running a restaurant.

There are situation that you have either no control or little control or lost control. Trading means a supply and demand cycle. You get the supply so if there is a demand you sell your supply. If you have business, e.

selling fruits etc. of course he is not sure if all will be sold, perhaps some will be rotten and that is his loss. is that gambling? Very true. I think some folks get the literal definition of gamble confused with the idea of gambling. the analogy confuse me.

how come selling is gambling? of course if i have 5 apples, i already know i will get profit for 5 apples, if i am succeeded selling it.

but definitely not if i only sell, say less than 3 apples. the lost and profit is countable. For lots of traders who fail to properly assess and predict swings and trends in currencies, they are essentially gambling. Considering the definition of gambling, is forex trading just gambling? If gambling can mean taking risky actions with the hope of a certain outcome, forex can be considered gambling , depending on who is doing the trading. Also, no matter how good you are at trading forex, there is a lot of risks involved; the markets are highly volatile, and most traders utilize leverage which can be dangerous.

If a person is uneducated on the forex markets and has no clue what they are doing, and are also placing trades with the hopes of making some coin, they are by definition gambling. Many novice forex traders bring emotion and or feelings of luck into trading, which many people bring into gambling as well, which will not work.

However, gambling is not in the DNA of forex trading — most of us, especially the ones who are successful, are not gambling when we are trading forex. All you need to do is take the time to learn and implement the proper strategy in order to make it less of a hobby or money pit and more of a job.

So yes, while forex trading can be like gambling, forex trading involves strategy, analysis, and technique that most gambling does not require. These are only some of the most basic similarites and differences of gambling vs forex — obviously, the lists are endless. Those who are addicted to gambling typically have the belief that their next bet is the winner — this false optimism is what leads them into bankruptcy and debt, with them hoping that the next gamble will result in money and riches.

Unfortunately, forex trading can be the same — a lost trade is just as painful, and many traders will enter more positions in order to try and win back the money they just lost.

This is a painful cycle that only results in money lost. The only way to ignore this false sense of security is to approach every position or game with the viewpoint of a loss — to understand that there is a chance that you may lose. Similarities Between Gambling and Forex Trading Leverage Leverage tool in forex trading is probably the reason I would classify forex trading as gambling.

Here is why? It triggers people to invest more and risk more money with leveraged amounts. Leverage, as simplest way, trading with money that is not even yours! There are many brokers providing leverage on 10X, 50X, X, X, X even X. This means if you are investing dollars with X leverage ratio, your money assumed as For example, you invest Dollars with X leverage ratio. With this leverage, you could able to buy If Yen become , your investment would be somewhere around This is your profit!

But same works vice versa if Yen gets value against Dollar! You would probably not able to control your investment because the system would kick you out within seconds as your actual investment is not enough to cover this movement. If not today, it would be tomorrow for sure. Similar to gambling, people think that forex trading with leverage, would be able to make them millionaire overnight since there is really high potential to get this level if you really have large amount of investment.

If you have tendency of addiction, you would no longer be using forex trading as an investment but gambling. Majority of forex traders with leverage start so-called investing gambling to recover their loss out of casinos or online casinos. Besides, both gamblers and traders are lost their patience. They want to reach results in a matter of minutes or seconds. Once you see those fancy figures, money symbols, upright directions, amazing designs and sounds.

They leave happy even they lost. When we analyze both online casino platforms and forex trading platforms, numbers, symbols, colors and images are always in full HD and in attractive tones. According to my experience with Forex traders, they were getting back to leverage forex trading once they saw uptrend charts similar to below photo.

Somehow, I found myself in the system again. Both Gambling and forex trading have always reason to trade gamble on. For forex, you have great apps or well-known websites that shares calendars for approaching important economic events.

If you check the calendar carefully, almost every day, every 2 or 3 hours there are some important economic events in different parts of the world. This situation increases the eagerness of trader to trade on almost all events available on the calendar.

To answer the question, is Forex trading gambling , we have to break it down by the very definition of what it is to gamble. But before we do that, I want to share a brief outline of the way I used to think about trading and gambling. I remember when I first started trading Forex back in late , a little more than 6 years ago. Without fail, one of the first comments people would make was,. Being the naive trader I was at the time, I would get a little defensive and respond with something like,.

Fast forward to today…boy was I WRONG about that statement. Make no mistake about it folks, trading is gambling! Notice a common theme? Because they want to sell you their product, of course. Because gambling is a bad thing, right? The truth may surprise you. What is the truth? It all comes down to putting on trades where the probable win is higher than the probable loss. In other words, stacking the odds in your favor. In a previous lesson, I wrote about price action and confluence.

Forex trading is the ultimate form of gambling. We get to review past price action before putting on a trade. The key is finding the right Confluence Factors that stack the odds in your favor. All of these factors mean a higher probability that this trade will make us money, and it did. We can learn something from casinos. Then wait for the strange look they give you. Do you think trading is gambling?

Save my name, email, and website in this browser for the next time I comment. You can argue that people who do not have those skills, and there are many of them are gambling. But the few that have acquired the skills and know what they are doing are NOT gamblers. So you are not credible as a trader. I am sorry. You should not be trading. Sorry you feel that way, Justin. Wagering of money on an event with an uncertain outcome with the primary intent of winning money — that sounds like trading to me.

Every business gambles to some degree, not just the trader. Hey Justin, If you think that way, you can say parents looking after their children and providing them with everything in theire capacity believing children would look after them in return when they will be needed and when the children ditch their parent to be in old age homes, the parent were gambling.

An entrepreneur who confidently relies on his hunch and abilities to grow a business is gambling. The investors who invest in companies and shares are gambling. Nonetheless the very individual who is working hard to get a dream job is gambling because most of the time the aspirant does not end up with dream job or to make things worse even jobless.

All of these people know nothing more than the history known to them and they are gambling with their time, money, resources. When I started Forex trading, i started with demo accounts and I traded without doing any analysis. I ended up blowing my full account. I was gambling. It s been 2 years now and I am still in the process of learning, because I dont want to gamble. How do I do that. Not trading based on emotions, trade purely based on facts, get news updates constantly, follow mentors, research, back test.

And I am able to make profit now. Those who think it is a serious business or investment venture and do everything necessary for its success, your success is guaranteed. Good luck folks. So why do some people manage to maintain an edge in gambling, or an edge in trading? Well said, Dakao. But folks, if you can loose, it is a gamble, period!

I am surprised that we are arguing over this. Tell me. If you are a trader, tell me if your results have improved from the last time we had this exchange.

You see, to become a good doctor, students are required to go to school for almost 10 years. Well, why do people think that trading, which when done well can make you a billionaire, does not require any formal training?

In fact it does, but nobody will provide that training because once you are good at it, you keep the knowledge to yourself. And if you were right then all the investment banks that have trading desks are also gambling. Is that what you think? How do you not realize that any human endeavor at which one can become better over time is not gambling? If you have not, please do. And once you have.

Sit down, get yourself a good computer and start learning to read price movements. Get familiar with Elliott Wave theory. Develop some good common sense. If you are really serious about it, you will soon develop a different mindset. Until you do though, I am afraid you will continue to lose your hard earned dollar because in fact before you get a serious training you are nothing else but a gambler.

And those who are not in it to gamble will take your money. Well Justin, i want to ask you, what is the wrong in gambling? then what makes you want to compare forex with gambling???

money changer is gambling? buy and sell of currency is gambling? there is a lot of difference between Forex and gambling. Investing, trading, to me is not gambling, as you own shares in the company concerned. You put your money in a Bank or Building Society and get a fixed rate of interest. You invest in the stock market hoping to make more than in a Bank or Building Society knowing that you are taking on greater risk.

Investing in a share one takes into account the fundamentals of the company, how well it is run etc.. Gambling is like E G throwing a dice or a game of roulette, where you have no control at all.

If we did not have Banks and private people investing in companies, our civilisation would not be so far advanced. Alex, this post is about trading, not investing. Those are two very different things, especially when referring to fiat currency. hie Justin , what Alex is simply trying to tell you is : gambling is done on the basis of probability whilst forex trading is done on the basis of facts [technical and fundamental analysis.

Is there anyway around this? I have one important question regarding Forex Trading. Elias, the point of this post is that you need to trade like the casinos by stacking the odds in your favor. Trading is not gambling, it is possible to make money in the market, only those who know the market how it is moving.

the market always not work in the same way some time you have to away from market. i know that, I done that, I made money. It seems you missed the point of the post, which is to trade like a casino by stacking the odds in your favor. I agree with you Justin. This is a great post.

Easy to understand even for the layman. Thank you. The similarity to gambling is that the outcome of one individaul trade is unknown and ramdom. You can try to increase proabilities with more confluencies, but it is still ramdom. Serious traders make money via a series of trades with proper Risk Reward.

Absolutely true article. There is no way to guarantee your trade will be a profit. if some body open a restaurant. and he expect people to come to him. is he gambling,if he is. it is means every thing in our life is gambling.

If gambling can mean taking risky actions with the hope of a certain outcome, forex can be considered gambling , depending on who is doing the trading. b It's also possible to make a living out of gambling. Is Forex Trading Gambling Summary: When is Forex trading gambling? c Forex actually is gambling, no-one knows where price is going to head in the future. I will bake cakes but am not sure if the stock will consumed until there is no more cakes. As in the case of the unlicensed or inexperienced driver.

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