Why do people see Forex trading as gambling?

[sunar14]

Forex becomes gambling when you become impatient and start to rely only on luck forgetting about means of self-control, abandoning risk-reward approach.

Yeah it's difficult to not get carried away with dreams in trading because of huge trading opportunities that markets offer.

 

[Aayushi]

Forex trading is no gambling. People enroll in classes and devote time to learning about the currency market. It's not a casino game where the outcome is solely determined by chance. Forex trading may be very profitable if done CORRECTLY with thorough market analysis and strong trading strategies.

The distinction between gambling and Forex trading is that it is systematic rather than social. Both carry a significant level of risk, but only one provides the consumer with meaningful control over their first deposits.

 

[darwisy]

We need to differentiate between trading and gambling.

Trading has proper trading plan, money management, risk management, SL placement, doing some research on current economy, having strategy and proper technical analysis.

Gambling just see and feel then entry without trading plan, money management and SL. They bet all the margin and hope market giving them a lot of profit.

 

[sunar14]

Gambling is bets placed on irrational reasons - that you are lucky or that you need to beat market after loss no matter what price or risk is or that you buy because you think other will buy (bubble, Ponzi scheme etc.). On the contrary fundamental trading is based on rational reasons - expectations that the asset will gain in value (not just appreciate in price) over time.

 

[Electric Rainbow]

You should always keep these aspects in mind and always remember that Forex trading is not gambling. When you accept this, your decisions get better and you can learn to develop strategies to take profitable trading positions. Forex trading is very different from spinning slot machines.

 

[sunar14]

Gambling in trading is not sustainable in the long run? Who will agree to play the game if for example he knows that it ends up in guaranteed loss? Clearly it's irrational but there are people who are still willing to accept such rules.

 

[Electric Rainbow]

You can utilize various components of tools such as Stop Loss to ensure that you close trades at the right time. Gambling, on the other hand, does not involve any strategy as it is fate that decides whether you win or lose. This is a major and very noticeable difference.

 

[darwisy]

Most of retail trader is gambling while trading forex because they can't control their emotion and discipline then end up with MC.

Only trader who has the capability to control their emotion and discipline we can call it trading.

 

[Electric Rainbow]

You should always keep these aspects in mind and always remember that Forex trading is not gambling. When you accept this, your decisions get better and you can learn to develop strategies to take profitable trading positions. Forex trading is very different from spinning slot machines.

 

[sunar14]

At least they have to limit possible risk and protect trading capital from volatility, i.e. use stop loss. Even random betting with stop loss has good chances to make initial profit for you. Try and demo and convince yourself in that.