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Is forex gambling?

Ali Zainal Abidin Bil Fagih (Cleeon)
Dec 23 2013 at 02:23
31 posts
SwissManagement posted:
Cleeon posted:
sorry, little confuse and maybe We just out from topic of this thread about is trading forex gambling or not ?

above, I just ask to Swiss Management, which one is His/Her Pamm, that offered to Me :) ?


My pamm account is 'Pamm hotforex'


thanks :)

sometime, We can't change what happening to other peoples, the fact and the truth is, We really can't change what happening to other peoples, maybe someone can tell to Her/His friend about forex online trading, then His/Her friend will going to try it, but believe Me, even You are'nt need to do that, Your friend will find the way to know about forex online trading, You just choose Your ways of life, be the one Who first tell about it to Him/Her or not :)

when someone see forex trading is part of gambling You can not change it, He or She must act for Him/Herself, no other human :)

korvix
Dec 30 2013 at 06:47
4 posts
In any gambling game there three elements:
1. Odds
2. Upside
3. Downside

Let's look at a sport bet with very high probability
1. Odds: 90%
2. Upside: 10% - The higher your odds, the more limited your upside gets
3. Downside: 100% - You always lose 100% of the money invested

And now forex:
1. Odds - you decide
2. Upside - unlimited
3. Downside - you decide

Even a forex trader with 50% success rate:
1. Odds - 50% (Going with trend and using s/r should give you odds that are greater than 50%)
2. Upside - 15%+ (A wise trader always aims for a minimum 3:1 profit/loss ratio)
3. Downside - 5% (wise trader will limit risk to 5% of his account per trade. For example a 25 pip stop loss means you can enter with 20% of your account into a trade to risk 5%)

So yes, forex is gambling but with great conditions, you get to decide them.
Even if odds are 90% in your favor, your upside profit always stays unlimited.
Go ask in vegas if they can give you such gambling conditions.

Rizki Kurniawan Paradja (minyu2)
Dec 30 2013 at 08:39
38 posts
But there are always odds of upside and downside potential when we try to predict something dont you think?

korvix
Dec 30 2013 at 11:22
4 posts
Yes, that's why a good trader uses s/r zones as his locations of entry.

Because if price goes against him, he knows that he's entry was wrong and he can exit.
And also for exit, before entering a trade you look at where is your potential exit.

This way you calculate your risk/reward ratio before entering every trade, anything less below 3:1, don't even touch.

If I go short at R1 on a downtrend, I know that my next potential exit point is S1 (150 pips distance)
and if I'm wrong and price continues to climb to r2 (I will lose 25 pips as my stop loss is above the r1)

Odds: 80%
Downside: 5% (I enter with 20% of my account, and with my 25 pip stop loss, only risk 5% from total of account)
Upside: 30% (150 pips gain on 20% of account = 30%.)

That's a worthwhile trade to put your money on.

forexpipcatcha
Dec 30 2013 at 11:30
325 posts
korvix posted:
Yes, that's why a good trader uses s/r zones as his locations of entry.

Because if price goes against him, he knows that he's entry was wrong and he can exit.
And also for exit, before entering a trade you look at where is your potential exit.

This way you calculate your risk/reward ratio before entering every trade, anything less below 3:1, don't even touch.

If I go short at R1 on a downtrend, I know that my next potential exit point is S1 (150 pips distance)
and if I'm wrong and price continues to climb to r2 (I will lose 25 pips as my stop loss is above the r1)

Odds: 80%
Downside: 5% (I enter with 20% of my account, and with my 25 pip stop loss, only risk 5% from total of account)
Upside: 30% (150 pips gain on 20% of account = 30%.)

That's a worthwhile trade to put your money on.


How did you come to the 80% odds in your favour my mathematical genius?... show us your two years of genius 805 win rate results in a live market lol

Rizki Kurniawan Paradja (minyu2)
Dec 30 2013 at 15:49
38 posts
@korvix I think you missed my point. I'm saying if you put it like that then everything are gambling. And most people would argue that not everything are gamble.

And pipcatcha has a point there. 3:1 risk/reward ratio trades dont usually have more than 50% accuracy. But this is out of context already.

But anyway I liked that @korvix try to define what is gambling first before making conclusion. I think anyone asking if forex gambling or not should try to compare their own definition of gambling and compare with the definition of forex trading. Then you should have the answer.


forexpipcatcha
Dec 30 2013 at 20:37
325 posts
It doesn't matter if trading is gambling or not, the question is can you make consistent money from it like a business? If not then give it to someone who can because if you could you wouldn't be here arguing you would be one of the richest idiots on the planet in their mansion.

ArdiFX (ahuruglica)
Dec 30 2013 at 22:21
852 posts
forexpipcatcha
Dec 31 2013 at 01:53
325 posts
The brokers and liquidators I.e banks etc... Just like the casino wins in the long run

HolyCow
Jan 01 2014 at 13:52
41 posts
There is way to get funded trading Demo for just 20 trading days via TST or Pulsar try outs. However I doubt it many day traders who show profit could have made it in controlled environment. The catch is that they have got so many various rules to keep traders disciplined and keep risk low that it is really not easy to make it. But it is doable.

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