To understand whether or not Forex trading really is gambling or not, we need to understand the definition of gambling. So let’s take a look at 3 definitions of gambling by different sites. In blogger.com, gambling is defined as: the activity or practice of playing at a game of chance for money or other stakes 17/07/ · Forex John Smyth July 17, Forex trading is regarded by many people as nothing more than gambling. That’s why the question, “Is forex trading gambling?” is so pervasive throughout the Internet both in and out of online gambling communities and forums. It isn’t difficult to see why some people have this view of forex trading Is Forex Trading Gambling? Are You A Gambler or An Investor?
Is Forex trading gambling? The answer might shock you! - FTMO®
So is Forex trading gambling, or is it legitimately a place where you can consistently earn an income from? To understand whether or not Forex trading really is gambling or not, we need to understand the definition of gambling. In Dictionary. comgambling is defined as:. In Wikipediagambling is defined as:. And in Encyclopedia Britannicagambling is defined as:. The Roulette is a game where players bet on numbers on the roulette wheel and get a payout if the ball lands on their numbers.
You see, while you may get lucky and win a few games and even walk out of the casino a winner…. For example, if you flip a fair coin, it will be a chance of it landing in either heads or tails.
Percentage Win x Average Amount Won — Is online forex trading gambling Lose x Average Amount Lost. But just like the chart shown on the outcome of coin flips, the more times you play the roulette wheel, the more the actual probability will play out. Back in the s, is online forex trading gambling, there was a group of MIT students that went to the casino to play Blackjack and was said to have walked away with millions of dollars.
This group of MIT students used a method of card counting to have an edge over the casino in Blackjack. That means they used a method that has rigged the odds in their favor so they will win over the long run. They know that in the long run over hundreds of thousands of bets, the probability will eventually play out to their favor.
They even serve food, drinks, provide entertainment in the casino, and even give you free accommodation at their hotels if you gamble big enough. They want you to stay there for as long as possible until their probabilities play out and you run out of money. So now that we understand that the casino, is online forex trading gambling, in reality, is not gambling because they know they will win in the long run….
In my opinion, gambling is when you have absolutely no idea about the probability of you winning over the long run…. Or, you know that the odds are against you but you somehow hope that you can still be profitable. Positive Expectancy is when you know on average how much your trading system will make per trade. Win Percentage x Average Profit Per Trade — Loss Percentage x Average Loss Per Trade, is online forex trading gambling.
So when you hold a trade overnight, you are either paid a Positive Swap or you have to pay a Negative Swap. Long or Short. When you have both a Positive Expectancy trading system and Positive Swaps, you are putting the odds in your favor.
All you have to do then is to have good risk management, and let your probability play out over lots of trade to become profitable in the long run. Or do you treat Forex is online forex trading gambling like a business and trade with the expectancy of coming out profitable in the long run? So go ahead, click the share button below now to help more traders get an Edge trading the Forex market.
Who am I? I'm a Trader, Investor, Educator, Entrepreneur, a Loving Husband, and a REALLY Cool Dad :. On this blog, I will be sharing with you everything I've learned along the way to make you a more successful trader in the markets, and more importantly, help you create an edge trading the forex market :.
Your email address will not be published. Save my name, email, and website in this browser for the next is online forex trading gambling I comment. Additional menu. However, you have a concern… And the concern is whether Forex trading is gambling. I get it.
The Definition of Gambling To understand whether or not Forex trading is online forex trading gambling is gambling or not, we need to understand the definition of gambling. comgambling is defined as: the activity or practice of playing at a game of chance for money or other stakes. So the question comes is online forex trading gambling to: Is Forex trading really a game of luck, where you have no idea of your chance of winning?
Or is Forex trading a game of probability, where you can determine your chance of winning? The Casino Gaming Model Are casino games a game of luck or probability? There are different types of bet combinations on the numbers and different payouts. If you bet on individual numbers, your payout is If you bet on either of the dozens, your payout is If you bet on red or black, 1st half or 2nd half, even or odd, your payout is For our purposes, we will use the red and black bets with the payout of In the European Roulette Wheel, there are a total of 37 numbers.
Many people think that this is a 50 percent chance of a win. But is it really? There are a total of 18 black numbers on the wheel.
What difference does it make? For this, we use an expectancy formula. This is to determine how much you win or lose on average for each time you bet. Now, if you play just 10 times, you could leave the casino a winner. And that means you WILL eventually lose your money. How much? But the players going to the casino somehow think they can beat the casino.
Is The Casino Gambling? This method was developed by a man named Edward Thorp. He is a mathematician and even released a book about it called Beat The Dealer. They are running a business. That means they have to ensure that they are profitable in the long run, is online forex trading gambling. And the people who are contributing to their profitability are their patrons, is online forex trading gambling.
Many casinos now even implemented changes to their Blackjack tables… Particularly using automated card shufflers to make card counting practically useless. This is their Edge. Redefining Gambling So now that we understand that the casino, in reality, is not gambling because they know they will win in the long run… We have to redefine what gambling is and how it relates to Forex trading.
To get this data, you will have to test your trading system across many trades. Generally, the bigger the number of trades, the more accurate the data will be. Positive Swaps The other way to put the odds in your favor is through Positive Swaps.
Swaps are the interest rate differential is online forex trading gambling two currencies. So if you are Long EURUSD, it means you are buying the Euro and selling the US Dollar.
And by doing so, there is an interest rate differential between these two currencies. Conclusion So after everything said here, is Forex trading really gambling? Yes and no. So whether Forex trading is gambling or not ultimately comes down to you. Do you treat Forex trading like going to the casino and trade based on luck?
You get to decide, is online forex trading gambling. One more thing… Did you like this post? If you is online forex trading gambling this post or felt it was helpful for you, would you please share it? Spread the Love :. Related posts: Is Forex Trading Profitable And How Much Can You Realistically Make? Leave a Reply Cancel reply Your email address will not be published.
Trade Like a Casino for Consistent Profits by Adam Khoo
, time: 16:53Is Forex Trading Considered Gambling (Or Can You Really Earn A Living From It)?
In conclusion, Forex Trading can be gambling if you treat it like gambling. If you have no plan, no strategy, or no systematic approach to the market, and you rely solely on luck, then the outcome will always be a loss because you are trading against the big guys To understand whether or not Forex trading really is gambling or not, we need to understand the definition of gambling. So let’s take a look at 3 definitions of gambling by different sites. In blogger.com, gambling is defined as: the activity or practice of playing at a game of chance for money or other stakes yes I still think forex trading is gambling, I tried it before though I did not understand much of what I was taught and loosing a lot of money made me realize I
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