Equating the stock market to gambling is a myth that people on the internet and television pundits have perpetuated for years. And, it’s simply not true. And, it’s simply not true. While investing and gambling have a few similar characteristics, they are very much different. Apr 3, 2017 at 7:16PM. Options are one of the least understood aspects of investing for everyday investors. In this clip from the Industry Focus podcast, options expert JP Bennett answers a listener question and explains how trading options is very different, and much more reliably profitable, than gambling. Trading and gambling are similar in that they both attempt to create a capital gain, over a relatively short period of time, without creating new wealth. If I am a shoemaker, then my efforts create a pair of shoes that someone else can wear (new wealth), while I earn an income from cobbling. Stating that Forex trading is not gambling would suggest that you can predict the future--and nobody can. But like casino bets, some gambles are riskier than others and with forex trading, you indeed have tools available to help you make educated decisions. Gambling is defined as staking something on a contingency. Also known as betting or wagering, it means risking money on an event that has an uncertain outcome and heavily involves chance.
Business and individuals are looking to lower costs in order to maximise profits therefore the trading of the currency is neither gambling but risk related speculation back by perception. It is a relatively new market and with that it has characteristics that see it move with a high trading range intraday and is not for the faint of heart. Gambling has a fixed odds system for all major games, while trading in the markets is truly unpredictable. The “house” or market does not have any unfair advantage as with casino style games. If you are able to exercise extreme discipline and laser focus on your trading strategy, you can profit in the market. Trading and gambling are very similar. However, to benefit from the similarities you must increase your odds and think like a casino boss. The best way to trade like a casino operates is to focus on fewer trades that align with your edge and having lower volatility of performance by keeping a disciplined approach to money management so that you don't take a significant drop in your trading progress.
You can familiarize yourself with all the technical indicators, study fundamental analysis from dusk till dawn, and there still is some sort of a risk when trading Forex. Numerous attempts have been made to simplify trading in the forex market, and while a degree of success has been achieved in this area, trading forex is more Forex trading is considered by many to be nothing more than gambling. After all whenever you take a position in a particular currency pair, you are essentially
27 Jul 2010 I am also a professional online poker player by trade so I have an extensive understanding of probability, the online gambling markets, and 21 Jan 2015 Forex trading is not new, but the electronic platforms and extreme trouble taking highly leveraged "off-piste" bets on European interest rates. 23 Mar 2015 Individuals that bet on FX like to call it trading, but lets be honest, the FX regulated in the UK, by either the FCA or UK Gambling Commission. However, placing these bets many times will lead to long term losses. To avoid being a gambler, the trader must make trades that have a positive expected value . Make no mistake about it folks, trading is gambling! Here’s what Webster’s Dictionary has to say about the definition of the word “gamble”: To risk losing (an amount of money) in a game or bet; To play a game in which you can win or lose money or possessions; To risk losing (something valuable or important) in order to do or achieve something Gambling is defined as staking something on a contingency. However, when trading is considered, gambling takes on a much more complex dynamic than the definition presents. Many traders are gambling without even knowing it — trading in a way, or for a reason that is completely dichotomous with success in the markets. The differences between trading and gambling. It should go without saying that there are many differences between trading and gambling. For starters, if you are a proficient currency trader you will have a system for trading that has a positive expectancy over the long run.
8 Jan 2018 My take on this as a Forex Trader myself is that the market itself isn't a gamble, the market is the market. Its the induvidual who goes into it with 25 Jul 2018 Why currency trading today is more like gambling than when Soros made his billions. Why trading closed end funds can be more profitable 18 Jun 2018 And I'm here to tell you the honest truth — trading is gambling, Adam Khoo is a professional stock & Forex trader and award-winning financial 28 Feb 2009 Currency trading: A high risk punt on money. By Philip Scott For instance, a punter bets £2 that BP at 540p will rise by June. He collects £2 for 2 Jun 2016 Yet they still keep turning to high-reward, high-risk foreign exchange market and majority of the people call this as gambling. Mr. Bolduc, a 55 8 Mar 2010 12 Reasons Your Currency Trading Account Is About To Be Banned Some sites literally advertise Forex and gambling services side by side. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets