Is forex gambling?
Member Since Aug 30, 2013
3 posts
Dec 14, 2013 at 11:39
Basically, if you are trading without any kind of a system, it's gambling 100%, if you add any kind of technical or fundamental analysis, or a combination of both, it becomes more like an educated guess although the outcome is still random. You never know which side of the probability of your system will be respected. Difference between gambling and trading is that trading always follows some kind of a logic regardless of whether you get that logic or not. People do not go into a position without a reason. The thing is that you have to go with the majority, and not with the majority of traders but with the majority of the volume traded in the same direction. A lot of people have tried to explain how markets are driven but they have not managed to explain it yet. For me it's a combination between probabilities and game theory. You have to be familiar with the probabilities of the setups you are trading but you also have to have an idea where the majority of trades are placed and in what direction. I regard FX trading as playing with probabilities rather than gambling. With gambling the odds are always against you and in the long run you will lose no mater what. With trading is different since you can determine if the probability of a given setup is positive or negative and you can practice money management systems. ;)
Member Since May 04, 2012
1608 posts
Dec 14, 2013 at 12:10
(edited Dec 14, 2013 at 12:11)
ypetrov123 posted:
Basically, if you are trading without any kind of a system, it's gambling 100%, if you add any kind of technical or fundamental analysis, or a combination of both, it becomes more like an educated guess although the outcome is still random. You never know which side of the probability of your system will be respected. Difference between gambling and trading is that trading always follows some kind of a logic regardless of whether you get that logic or not. People do not go into a position without a reason. The thing is that you have to go with the majority, and not with the majority of traders but with the majority of the volume traded in the same direction. A lot of people have tried to explain how markets are driven but they have not managed to explain it yet. For me it's a combination between probabilities and game theory. You have to be familiar with the probabilities of the setups you are trading but you also have to have an idea where the majority of trades are placed and in what direction. I regard FX trading as playing with probabilities rather than gambling. With gambling the odds are always against you and in the long run you will lose no mater what. With trading is different since you can determine if the probability of a given setup is positive or negative and you can practice money management systems. ;)
Very nice comment! I agree with all of it, except for this sentence: 'with gambling the odds are always against you'.
Just look at the PRO Poker players on World Poker Tour. Mostly the same people make the final tables. Yes, they are gamblers and they gamble, but they have a certain EDGE over their opponents.
It is the same with Forex: you have to have a SOLID EDGE over your opponents to belong to the 5%, who make it. Without that edge, you are really-really just gambling and belong to the 95% providing a generous income for the 5% who have an edge.
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Dec 17, 2013 at 14:53
efata_investasi posted:
Is trading Forex gamble? because so many people often told me that forex is gambling, and if that is gambling then God will never help us with it right? because gamble is forbidden by any of religion in the world right😇?, so there is more loser than a winner on forex business because God dont like this stuff 😁 if you say forex/futures is trading so my question is what trading definition? if there is stuff to buy/sell and involved money right? so forex/futures/index is pure gambling?
OF COURSE TRADING FOREX IS GAMBLE.it is damn sure.but gamble is a bad thing? so drug is. is drug the bad thing? drug can also help people in hospital.
Member Since May 04, 2012
1608 posts
Dec 18, 2013 at 16:08
(edited Dec 18, 2013 at 16:09)
caigege posted:efata_investasi posted:
Is trading Forex gamble? because so many people often told me that forex is gambling, and if that is gambling then God will never help us with it right? because gamble is forbidden by any of religion in the world right😇?, so there is more loser than a winner on forex business because God dont like this stuff 😁 if you say forex/futures is trading so my question is what trading definition? if there is stuff to buy/sell and involved money right? so forex/futures/index is pure gambling?
OF COURSE TRADING FOREX IS GAMBLE.it is damn sure.but gamble is a bad thing? so drug is. is drug the bad thing? drug can also help people in hospital.
It depends.
1. If you ask the vast majority of people (95%) who cannot make a living on Forex: Yes, they say Forex is gamble.
2. If you ask the minority (5%), who can make a stable living on Forex: They will say, it is not gamble (see my previous comment).
The conclusion: It depends on the perspective, like in case of the sledge dogs. The first dogs see the beautiful scene of the snow covered plains. Well the rest of them can see only the butt of the dogs in front them. Big difference and each would tell you a different story about being a sledge dog.
Another example can be the description of an elephant by blindefolded people... See the picture...
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forex_trader_150670
Member Since Sep 12, 2013
110 posts
Dec 18, 2013 at 22:14
Forex is not gambling. It's serious business. Just need to use good money management is the key ;)
Dec 19, 2013 at 01:14
I am agree with FxMasterGuru and also Swiss Management.
if You said drugs which can be tools to help You against disease is same like heroine or morphine who fraud you with fake happiness and give you hallucinations, that means very difficult to make what is difference between devil and angels, they're same creature, created by same GOD, but when the one choose to be obey and still beautiful (angels), other choose do not obey and accept the consequence to be cursed.
When You have around $50 USd, and feel hungry, You can buy a pizza, a hamburger, or chocolate, or maybe ice cream.
or going to bar to order a glass of cocktail or I don't know yet how much is the price, go to drugs dealer for some little marijuana.
the choice is yours, but the choice make a difference.
some Traders said, 'I can see forex, just need technical analyze', Others said 'I don't give much attention with technical, fundamental news is the key', but Traders in different side can also said 'how They can choose technical or fundamental only ?, We need to see and check both point of view and have sentimental analyze'.
We can't force a cheetah to be a lion or lion to living like a tiger do, but they are in fact is brother, they just choose different ways of life, but We can see the different between them, isn't it ?
if You said drugs which can be tools to help You against disease is same like heroine or morphine who fraud you with fake happiness and give you hallucinations, that means very difficult to make what is difference between devil and angels, they're same creature, created by same GOD, but when the one choose to be obey and still beautiful (angels), other choose do not obey and accept the consequence to be cursed.
When You have around $50 USd, and feel hungry, You can buy a pizza, a hamburger, or chocolate, or maybe ice cream.
or going to bar to order a glass of cocktail or I don't know yet how much is the price, go to drugs dealer for some little marijuana.
the choice is yours, but the choice make a difference.
some Traders said, 'I can see forex, just need technical analyze', Others said 'I don't give much attention with technical, fundamental news is the key', but Traders in different side can also said 'how They can choose technical or fundamental only ?, We need to see and check both point of view and have sentimental analyze'.
We can't force a cheetah to be a lion or lion to living like a tiger do, but they are in fact is brother, they just choose different ways of life, but We can see the different between them, isn't it ?
Member Since May 04, 2012
1608 posts
Dec 20, 2013 at 07:53
SwissManagement posted:
I'm agree with you @Cleeon .
You should check our pamm account and see this is possible to earn money on forex
47% DD...? Yes, it is possible it earn money by many different ways, but what is the risk of the capital?
Most serious investors run for the exit at 5-10% DD... not to mention 47%...
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Dec 20, 2013 at 12:41
@FxMasterGuru
Cool picture of the blind people with the elephant, a very succinct analogy. :)
I agree though, 47% is a massive drawdown, most serious investors wont touch an account with more than 10% DD.
A consistent, reliable strategy with a low DD will always attract more investors of all kinds than a volatile account with massive DD's, even if the latter produces a better overall return.
Regards,
Price Action Trader - 2% weekly return
Mr Patient
Cool picture of the blind people with the elephant, a very succinct analogy. :)
I agree though, 47% is a massive drawdown, most serious investors wont touch an account with more than 10% DD.
A consistent, reliable strategy with a low DD will always attract more investors of all kinds than a volatile account with massive DD's, even if the latter produces a better overall return.
Regards,
Price Action Trader - 2% weekly return
Mr Patient
Patience, above all else.
forex_trader_150670
Member Since Sep 12, 2013
110 posts
Dec 20, 2013 at 14:29
I'm smilling to read "47% DD is big". Because, why do you invest 1000$ to use only 100$ ?? If you use only 100$, so down your capital. It's ridiculous to have a big capital and use only 10 or 20%.
You are in forex guy ! Wake up ! It's not a fucking bank account without any risk. When my DD will be more than 70%, you could say i'm newbie.
Otherwise, say nothing and check my account grow ;)
SwissManagement
You are in forex guy ! Wake up ! It's not a fucking bank account without any risk. When my DD will be more than 70%, you could say i'm newbie.
Otherwise, say nothing and check my account grow ;)
SwissManagement
Dec 20, 2013 at 17:43
High drawdown is not in indication of a failing system or reckless trading. For example, a system that can make 400% in a year but has a drawdown of 80% is still a very useful system. Drawdown is only a component of risk management.
You win some, you lose some.
forex_trader_150670
Member Since Sep 12, 2013
110 posts
Dec 20, 2013 at 22:12
I agree with FXRX
forex_trader_150670
Member Since Sep 12, 2013
110 posts
Dec 21, 2013 at 11:30
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'
forex_trader_136673
Member Since Jun 28, 2013
852 posts
Dec 21, 2013 at 20:56
To some Forex is gambling to some is not.
Some traders trade like gamblers and some traders have an edge and trade like they are the house. At the end of the day, it's a zero sum game.
Some traders trade like gamblers and some traders have an edge and trade like they are the house. At the end of the day, it's a zero sum game.
Member Since May 04, 2012
1608 posts
Dec 22, 2013 at 00:00
ahuruglica posted:
To some Forex is gambling to some is not.
Some traders trade like gamblers and some traders have an edge and trade like they are the house. At the end of the day, it's a zero sum game.
Well said! If you like the truth of it, or you don't like it, it is still the naked truth...
Find your EDGE and become the House. Otherwise you are just led to the slaughterhouse...
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