Is Trading Like Gambling at a Casino?

There are some risks associated with trading in the Forex market as well as casino gambling. However, it is essential to remember that no expert can tell you what the US Dollar will do in the future, even if they have been in the market for ages. There are many tools out there that can help you make a better-educated decision but do not use them if they are not backed by solid evidence. No individual is perfect in the forex industry; that is why people are trying to eliminate the trading risks to convert their stakes into real cash. Forex trading in Europe vs Canada is no different, and plan executions are similar.

No one knows what the Forex Secret is, and you can hardly do anything with it except study it. Endow yourself with all the technical aspects to analyze the market and understand the various elements.

A gambler will not accept that the odds are always favoring if they are not counting cards or employing other tricks to try to place the numbers in their favor. Often, a Forex trader will try to use a strategy or multiple strategies to put the odds in their favor. Successful Forex trade is never guaranteed. There are plenty of reasons to believe that many successful trades will be profitable overall over time. There is a crucial difference between gambling and Forex trading. Around 72% of retail Forex traders lose more than they gain, which is not because they are gambling. Before you start trading, make sure that you are fully aware of the rules and regulations applicable to the industry. Put it away for your Forex account.

If you are still reading, then you know that there is a significant risk in Forex, but the possible reward is something that you cannot ignore. The potential profitability of Forex trading is as endless as any market on the globe. The following are five attributes that distinguish the two industries.

Numbers

Before we get into any moral issues, let us focus on why people make money in the first place. There is no comparison between the amount of money traded in the Forex market and the gambling industry. There are around 2 to 5 trillion dollars traded in the Forex market each day. It is believed that approximately 2 to 5 trillion dollars are sold in the market.

Players

The Forex market is carried out by the world’s most prominent financial institutions. These institutions provide the necessary support and capital to the global financial system. Even though it’s not considered a legitimate industry, the presence of such an organization provides a higher level of legitimacy than the gambling world. While it can be challenging to gain approval for certain activities in gambling, such as online gambling, Forex is as legitimate as other markets. If you are looking for a haven from the uncertainties of the world, then you should consider putting your money where your mouth is.

Tools

Several factors can affect the profitability of a trade-in Forex, and it is essential to remember that you are not fully aware of all of these. There are various schools of thought regarding how much time and resources should be allocated to minimize the risk involved in deciding. Whether you are a technical analyst or not, there is no denying the importance of fundamental analysis. You can also watch and analyze the markets for days before opening a trade. I am not sure what these tools are supposed to do in the gambling world, but I do not want to rely on luck or fate for my money.

Emotions

One of the main reasons why people get into gambling addiction is that they are too emotional. People who enter casinos with nothing but a desire to make money usually do not succeed. They tend to lose all their money. In forex trading, the first rule is to leave your emotions out of the equation. Trade scientifically and objectively to attain your set goals. Set goals and stick to them. Doing so will prevent you from overcompensating or letting your greed take over. Is it possible to leave your emotions out of a picture?

Strategies

A high percentage of traders indeed end up with significant losses. However, I would tell you that this is due to them blindly trading and not having a strategy. The biggest mistake a trader can make is not making the right decisions before they change a penny. Stop-loss strategies are used to prevent emotions from pushing you to sell or stay in the trade. They can also help you manage risk and make sure that the transaction is executed correctly. Use Take Profits to prevent your human greed from telling you to get out now that the value of your currency has increased.

Do you think you have a gambling problem?

If you wish to determine if your gambling practices are in the gambling market, then ask yourself some of these questions;

– Do you have a trading strategy that gives you an edge over the market?
– What percentage of your account do you stake on a single trade?
– The amount you are using to trade, can you afford to lose it?
– Are you holding onto the next massive trade?

Suppose your answers are yes to these questions. In that case, it is a high probability that you are gambling with your hard-earned money in the Forex market compared to the trading experts who approach trading cautiously like running a business.

Gamblers do not realize that what they do is a dangerous business. Instead, they approach it with a lot of enthusiasm. Unlike gambling, Forex trading is not illegal. Rather, it is regulated by the Financial Industry Regulatory Authority.

Hope is the main reason why most people act on hope. When it comes to Forex, most traders work in the hope that they will get into hazardous waters.

In conclusion, most of the retail traders in the gambling market lose money over time. There are  no gamblers who make money in the long run. These are no real gamblers because most of them use math models and money management strategies. There are no professional gamblers out there who can make money in the Forex market. The key to avoiding becoming an unsuccessful Forex player is studying various strategies and trying to understand why they work.