Gambling Vs. Speculative
Gambling is the act of betting on something with the goal of winning a monetary gain. Gamblers depend heavily on chance, or “luck” as they call it; rolling the right dice, betting on the right horse or mastering the right face. Gamblers play a numbers game where they play repeatedly, such as this: insert a coin, pull a lever – lose, insert a coin, pull a lever – lose…and this action may be repetitive until all the coins are gone, with possible small wins in between to fuel the gamblers stimulation for more lever-pulling. Obviously, the goal is to make money, usually to make a lot of money quickly, and with the risk of losing all your money in the process.
The nature of gambling is speculative.
Speculation is engaging in a transaction based on the hope that the purchase will become more valuable in the future. When discussing Forex trading, the goal of Forex is to benefit from fluctuations in the market value of a currency pair.
The nature of Forex is also speculative.
But, just because something is speculative does not mean that it is gambling.
Gambling Is In The Eye Of The Trader
Just as beauty is in the eye of the beholder, the answer to the question “is Forex trading gambling” is in the eye of the trader. Let us consider.
Forex Traders VS Forex Gamblers
Depend on Luck: Gamblers
Gamblers depend on chance or luck, and some Forex gamblers do too if they blindly take trades based on hunches, gut-feelings or just to try make money without having any foundation to take the trade.
Depend on Strategy: Traders
Forex traders on the other hand never take trades based on hunches or gut feelings. They do not enter a trade without a method or strategy, something solid as a reason for entering a Forex transaction. This differentiates a Forex gambler from a Forex trader.
Machine Gun Blasts: Gamblers
Gamblers place many trades and scalp the market to try small profits quickly and without any thought process other than “take the trade.” If you are a machine-gun trader who blasts out Forex trades with the greedy intent of fast profits then you are gambling, not trading.
Sniper Method: Traders
Forex traders are deliberate; they have a set of trading rules such as the trader criteria used by the ForexSignal Trading Desk. When the trading criteria is reached, then trade. True traders do not always have to be involved in a trade, and once in the trade they do not have to exit it quickly. They are patient both when entering and exiting a trade.
Just like a sniper is aware of their target and their current surroundings, a sniper trader is aware of fundamental factors that could affect their aim, such as NFP Friday and other major market moving events.
Forex gamblers aim for fast and unrealistic profits in a short time. Just like most get-rich-quick schemes, this involves spending too much for a fast return and usually results in losing all your money with no happy outcome.
Slow And Steady: Traders
Forex traders aim for consistent monthly returns, not necessarily huge monthly returns. They do not over-leverage with each trade but rather trade just a small percentage of their account at time. Learn more about using your leverage sword effectively.
What Will You Be?
We don’t believe in Forex trading as a gambling exercise and we hope that you agree. At ForexSignal.com we believe in trading with a solid method with the goal of consistent monthly outcome. Any other kind of trading isn’t trading, its gambling and you are on your own with that one. But if you want to be a Forex trader – you have found the right place to learn.