{"id":24545,"date":"2011-10-19T11:30:41","date_gmt":"2011-10-19T15:30:41","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=24545"},"modified":"2011-10-19T11:30:41","modified_gmt":"2011-10-19T15:30:41","slug":"reasons-why-money-making-from-forex-trading-and-gambling-are-not-same","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/10\/19\/reasons-why-money-making-from-forex-trading-and-gambling-are-not-same\/","title":{"rendered":"Reasons Why Money Making From Forex Trading and Gambling Are Not Same ?"},"content":{"rendered":"

I think everyone of us ever bought a lottery ticket or approached somewhat they call a \u201cbandit.\u201d I did\u2026 before I started my own \u201cForex way.\u201d And still there is a single question I can watch us, the traders, arguing about: it\u2019s not life forms on Mars, but IF there is gambling than Trading with Forex? Ok. Before I\u2019ll hit you with those ultimate \u201cfive\u201d non-gambling Forex features I just want to admit: there is something to that gambling-trading question.<\/p>\n

When we are opening up a Forex position, there is some percentage of a gamble. Why? No Forex \u201cveteran\u201d or expert can tell you which way the US Dollar is going today.\u00a0\u00a0 Of course, there many helpful tools that will make your decision more educated. And here BEWARE of so called Forex experts who tell you they\u2019ve got the entire currency picture clear. They won\u2019t beat math and simple logic\u2019s as a person holding a trillion-dollar day market in hands must be a billionaire. And of course this \u201cminion of fortune\u201d would not waist his precious time to convert you into a Forex trader.<\/p>\n

The core is\u2026 there is always risk as there is NO \u201cForex Secret.\u201d Even if you handle all the technical indicators and totally \u201cfall in love\u201d with fundamental analysis, there is still some risk and a gambling factor.<\/p>\n

If you\u2019re a newbie, opening your Forex account, you better say your money a warm \u201cfarewell\u201d to know that you might lose it. Face the fact! And face the common statistics: because of a small piece of gambling too many Forex traders just lose.<\/p>\n

Are you still with me..? OK, heads up! With Forex there is the REWARD that we cannot ignore. The money-making potential is endless! I call it \u201cthe FX-Galaxy\u201d. \u00a0Below I put the gambling-trading comparison that basically differentiates \u201cthe FX Galaxy\u201d from \u201cGambling Space\u201d.<\/p>\n

1. NUMBERS & numbers<\/strong><\/p>\n

Let\u2019s put off all the morals, ethics and speak about MONEY! That\u2019s why we trade\/gamble Forex. I admit that money circulation within the whole of gambling arena is huge. However, still it\u2019s a fly in comparison to \u201ca Forex elephant.\u201d Nearly two trillion dollars change hands each day with Forex environment! I am unaware of exact casino numbers but pretty sure they do not compare.<\/p>\n

2. Safety Players<\/strong><\/p>\n

FX market has the biggest \u201cbodyguards\u201d behinds its back. The highest level of legitimacy is supported by the most important financial institutions on the globe. So what about gambling..? It constantly struggles on the legal front while Forex legitimacy is as proven as of stocks or commodities. Ask your hard earned \u201cgreens\u201d of the way to be invested: where law and moral is on your side or\u2026 elsewhere?<\/p>\n

3. Tools or Trumps<\/strong><\/p>\n

When starting with Forex, you must know that it\u2019s not about luck. The light bulb in the darkness of the unknown is presented by different schools of thought. Their goal is to lower as much of risk as possible. You can trust in the technical analysis and \u201cTrend is your friend<\/a>\u201d saying. On the other hand, you can just live constantly \u201chunting\u201d all the Forex news and be the disciple of fundamental analysis, etc. It\u2019s definitely like hunting\u2026 you wait for your victim until make a shot. And so is with Forex. Analysis and close watching do precede opening a trade. You are keeping a close eye on the desirable currency and only then, after studies, make a move.\u00a0\u00a0 I don\u2019t think that gambling keeps such tools for your success.<\/p>\n

4.\u00a0Motions and Emotions<\/strong><\/p>\n

Gambling often causes addiction. Common fact. It happens when emotions rule the people so their mind totally belongs to the game.\u00a0 And yet it is still unproven: whether a loss or win is more dangerous for the appearing addiction. You lose \u2013 you want to carry on getting your money back and gaining your profit. You win and here comes greed saying: \u201cWhat are you afraid of? You are lucky today, son, grab it while you can!\u201d It is a big problem. The first Forex rule is put off emotions aside. You have your objectives set up so stick to them. It saves you from overcompensating with trades (money loss) or beats up your greed when profits come to you. Follow the strategy, Forex-soldier!<\/p>\n

5.\u00a0Non-Military Strategies<\/strong><\/p>\n

Many Forex traders end up losing this\u2026 um\u2026 \u201cMoney war.\u201d Let\u2019s call it like this. Why? They trade blindly and have no strategy. Biggest mistake! When start trading, you must know your goals and limits. Only then try to implement them with your trading platform:<\/p>\n