We have to admit. A lot of the people tend to compare forex trading with gambling.
And we also have to admit that both of them do bear some similarities. Both of the activities are designed for the trader-gambler to lose their money or win big amounts. And now we have to say that the people who think that gambling and trading forex are the same have never done neither of them.
It seems to be an initial thought in the minds of people – if you are a trader you should not be proud of that because trading is pretty much like gambling and that you must have a problem with both – money and your head, as you are easily betting your money with no certainty to multiply it but rather lose all of it. And we have to cut these people right off. That is not true at all. There is enormous difference between gambling and forex trading. It is the same as comparing Formula1 racing and driving up to your mom’s house for her birthday.
Gambling is usually associated with risk and losing. At least these are the first words that come to my mind when I hear about a casino. When I hear a word forex the first words are knowledge, experience and hard work. Feeling the difference there, right?
Second, while some parts and activities that include gambling do include possession of some knowledge and experience in the success rate, most of the time it is pure luck. With forex, as you can probably tell, the process is different.
In order to be successful in forex trading you have to see a lot of process happening all at once. You have to have more than basic understanding of the mechanism and market behavior. You have to always be on your toes and just like a scout – always be prepared for action.
There is also a difference in the goals that people set in front of themselves when entering a casino or a trade. Those going into casino usually hope not to lose all of the money. Those, going into the trade believe they are going to make some money and profit.
See the difference? Once again – although these two activities do share some similarities and are viewed upon like two totally same things it is not true. Forex trading and gambling are not the same things.