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Is forex gambling?
Dec 23, 2013 at 02:23
(edited Dec 23, 2013 at 02:23)
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 :)
forex_trader_152530
Member Since Sep 22, 2013
4 posts
Dec 30, 2013 at 06:47
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.
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.
forex_trader_152530
Member Since Sep 22, 2013
4 posts
Dec 30, 2013 at 11:22
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.
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.
Member Since Aug 30, 2013
280 posts
Dec 30, 2013 at 11:30
(edited Dec 30, 2013 at 11:45)
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
Dec 30, 2013 at 15:49
@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.
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.
Wait for it
Member Since Aug 30, 2013
280 posts
Dec 30, 2013 at 20:37
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.
forex_trader_136673
Member Since Jun 28, 2013
842 posts
Dec 30, 2013 at 22:21
Who can win consistently?
Member Since Aug 30, 2013
280 posts
Dec 31, 2013 at 01:53
The brokers and liquidators I.e banks etc... Just like the casino wins in the long run
Jan 01, 2014 at 13:52
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.
Member Since Dec 27, 2013
42 posts
Jan 02, 2014 at 07:37
I say it's a 55/45 chance lol.. slightly better odds than gambling
When the waves are good- Ride them, If they are not, wait for the next set
Jan 16, 2014 at 11:06
Ironman posted:
Well, a few things need to be corrected at once.
1. There is no God... Not of any kind. If there was, why would he/she/it let the world be the way it is. Forget it. You'll do yourself a huge favour. According to religions there are over 2000+ gods. One more or less will not make any difference.
2. You will NEVER know in what direction a specific market will go. NEVER. If you enter a trade, it can go EITHER WAY. Period.
So, why isn't this gambling?
If you have a good system, try it for 200 trades. (Some will, of course, disagree with this number.) A good system will, on a Risk/Reward-ratio of 1:1 win 55-80% of the trades. (80 is a LOT.)
If your trial gives you anything lower (on a 1:1 RR), leave it be, and try another.
So, about the gambling...
When you look at it on just one trade, it is gambling. But if you have trialled your system correctly, you'll know that when you set a trade, you'll still win about 60 of 100 trades in the long run, but for that one trade, you have no idea. EVER. ;)
No matter what any system seller tells you...
So, why go Average Joe tell you it is gambling when you ask him? Because he has no clue.
If you want to do some trading, trust your own judgement. The average person will have no idea what you talk about.
Cheers and good luck.
/Tomas
I have read your post and found it really nice and interesting. I am totally agree with you and would like to say thanks to you that you share this post here with us.
forex_trader_112671
Member Since Feb 17, 2013
123 posts
Jan 16, 2014 at 20:45
i believe that if you enter/exit trade without proper analysis and don't know how to trade profitable continuously then it is gambling.
Jan 16, 2014 at 20:46
You can either go long or go short, so it's basically gambling.
Can you attempt to improve your odds of winning?
Sure you can. Like read the trends like the card readers do.
Like draw them fancy charts.
You are still gambling.
Gambling.
Gambling, yeah.
Can you attempt to improve your odds of winning?
Sure you can. Like read the trends like the card readers do.
Like draw them fancy charts.
You are still gambling.
Gambling.
Gambling, yeah.
Jan 16, 2014 at 20:47
http://www.myfxbook.com/members/aleku82/aleku-gkfx/780174
What do u tihnk guys? Is this gambling or a good strategy?
What do u tihnk guys? Is this gambling or a good strategy?
Jan 16, 2014 at 21:33
Aleku82: No, to Martingale your way through anything is hardly good money management.
(Or any variation of Martingale...)
Keep it up and let me know when it goes bust. ;)
If you win on level trading, then you are winning.
The OP in this thread wanted to know if Forex trading was gambling according to his religious beliefs.
And, yes it is... That's why some brokers have special accounts for muslims.
(Or any variation of Martingale...)
Keep it up and let me know when it goes bust. ;)
If you win on level trading, then you are winning.
The OP in this thread wanted to know if Forex trading was gambling according to his religious beliefs.
And, yes it is... That's why some brokers have special accounts for muslims.
Jan 16, 2014 at 23:27
(edited Jan 16, 2014 at 23:30)
aleku82 posted:
http://www.myfxbook.com/members/aleku82/aleku-gkfx/780174
What do u tihnk guys? Is this gambling or a good strategy?
Discribe your strategy please.
I think, all strategies whiere makes more than 10%/month, is high risk and will bust.
Some young traders have a very good time, but not for long.
They comes, and bust here accounts, fewer or later. This type of traders are much, here and anywhere.
Whatever, this traders we show in the mass of traders, who continious loose.
Whats your strategy?
Good luck
Joie
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