Forex casino

Before I get into morals, ethics, legal issues, and legitimacy, let us just focus on the reason anyone gambles or trades Forex: to make money. There is absolutely no comparing the amount of money traded daily in the Forex market to that of the gambling arena. In fact, I am not aware of any industry ok maybe there are a few exceptions that handles so much money on a daily basis.

Depending on who you ask, there are anywhere between 2 and 5 trillion dollars traded daily in the Forex market. I could not find exact statistics about how much money passes through the casinos daily, but I am pretty sure the numbers do not compare. The Forex market is backed by the biggest and most important financial institutions on the globe. It is true that traders do not trade with the banks, but rather on the retail market, even so, the fact that the market is supported by such organization provides a much higher level of legitimacy than the gambling world.

While gambling always faces challenges on the legal front, Forex is as legitimate as any other market, such as stocks or commodities. While there is a risk factor involved in Forex trading, you are not totally in the dark when opening a position. There are various schools of thought that dedicate much time and resources trying to eliminate as much of that risk as possible. You can watch and analyze the Forex market for days before opening a trade , as well as keep a close eye on the currency you are looking to buy, and only then, based on your studies, make your move.

I am pretty sure such tools do not exist in the gambling world, which leaves you in the hands of luck or fate. Either way I would not want to depend on chance with my hard-earned money. How about you? One of the main issues with gambling, as we all know, is that it causes addiction. If we think about this for a second, we will understand that the reason this is, is because people let their emotions get the best of them. People step into casinos with nothing but their desire to make money. When they do not fulfill this desire, they try again and it is not long before they have lost all their money, which usually leads them to gamble even more, and often more aggressively.

This is of course a big problem. In forex trading, on the other hand, the first rule any trader knows is to leave their emotion out of the equation. Trade objectively and scientifically. Set your trading goals and stick to them. This of course prevents overcompensating with trades, when you have lost money, or letting your greed take over when you are profitable.

This leads me to my next point, use trading strategies.

It is true that a very high percentage of traders end up losing, and if you ask me why this is, I will tell you it is because they trade blindly and with no strategy. This is the biggest mistake a trader can make. Before you trade a penny, you need to make some serious decisions about your trading goals and limits. Once you have make those decisions, you must implement them using your trading platform. Use Stop Losses to prevent your emotion and your inner voice from telling you to stay in the trade because it has to go up eventually.

Use Take Profits to prevent your natural human greed from telling you not to get out now since your currency will continue to increase in value.

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Stop your losses and take your profits based on trading strategies and not weak human emotions. To determine whether you are gambling in the Forex market, ask yourself the following questions:.

If you answered yes to these questions it is a high probability you are gambling with your money in the Forex market, as compared to the professionals who approach their trading more cautiously, as they would running a business. Gamblers do not see what they do as a business. Instead, they approach Forex with a dangerous zealousness. But here is exactly where Forex trading can differ from gambling.

Traders can use a proven method such as Price Action trading to give themselves and edge over the market. Most gamblers act on hope. Hope of the next win and hope that they can claw back the losses they have sustained. When Forex traders act on hope they get into very dangerous waters. Realizing that you are trading like a gambler is a painful realization, but one that can be overcome by beginning to treat your trading like you would a career or a business.

All businesses have a sound business plan, and your trading should be no different. Your business plan should contain the following elements:.

Being realistic about what can be achieved in your trading plan is essential. Moreover, every business must keep a record of money made and lost. Your trading should also have such a book or trade journal. Professional traders do not see the markets as a game or a place to take huge risks. Professional traders know that trading Forex is all about managing risk. Start getting into the right mindset and become a professional at managing your risk.

Stop over leveraging your positions and taking risks that could cripple your account. Instead work out your money management techniques and how you can protect your downside whilst not capping the upside potential. It is true that most retail Forex traders lose money over time. However, there is a significant minority that makes money over time. There are no gamblers that make money in the long run, with the exception of professional poker players.

These are not really gamblers because they count cards and use money management strategies based on mathematical models, the same way professional Forex traders do. There are professional Forex traders who make money every year over years and years, but no professional slot machine players who can do the same. The key to avoiding becoming a Forex gambler is to study various trading strategies, back test them over many years of historical price data and learn what works and what does not — and try to understand why.

No, in the sense that in gambling the odds are slightly against you or even, while good Forex traders know how to trade when the odds are on their side. Yes, in the sense that any single trade might end in a loss. Most religions or ethical belief systems would only see Forex trading as a sin if executed as gambling. Therefore if you have reason to believe you can be an informed and intelligent trader and profit over the long run, without risking money you cannot afford to lose, it is hard to argue you are committing a sin.

Yes, most people who attempt to trade Forex lose money, mainly because they risk too much and do not follow proven Forex trading strategies. Hillel Fuld, a pre-eminent technology blogger and strategic advisor to dozens of tech startups, got his humble beginnings as the Content Manager at DailyForex. In this role, Hillel published hundreds of articles for new traders about how to better understand the Forex markets and how to trade intelligently.

Is Forex Trading Gambling?

Upon leaving DailyForex, Hillel continued writing and eventually began his own technology blog. We commit to never sharing or selling your personal information. Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions.

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Thanks for explaining this to me. I kinda think they were the same at something, but after reading this article clearly they are NOT the same. I totally agree with some of the comments here because it is not unless you are educated or you are being guided with knowledge. I've tried using FX Leaders and so far I am getting good results for the past week. I hope it continues But I've got questions.

Hi Keith, Thanks for the comment and nice words. Of course you can use the article, just please make sure to add a link back to DailyForex. Many thanks in advance Keith. The real issue is, Are your profits coming purely from the losses of other speculators? And, in Retail forex, are we are we trading an actual asset, or are we in reality just placing side bets on the action of the real forex market?