Are You Trading Forex Or Are You Gambling?
There is a very awkward reality many traders need to face; they may not be trading at all!
Yes, certainly, there is an element of gambling. Or some may say it is flat-out gambling.
I guess I couldn’t disagree according to the definition.
The Oxford dictionary definition states:
The action of gambling money on the outcome of a race, game, or other unpredictable event.
However, I would class myself as a trader and not a gambler although I’m sure many would disagree.
I would say that after consistent gains there must be an element of predictability, right?
Forex requires a strategy, proper risk assessment, and management, yet many believe it is nothing but trying to play chances.
This creates an incorrect approach that remains embedded in their psychology and one that is difficult to accept and overcome to become consistent in gains.
Anyone can learn how to leave such a mindset. But it requires them to swallow their pride remove the ego to realise it. Don’t worry! You are about to learn how to judge your trading mindset and correct it.
How Does A Gambler Think Forex Works?
Because of the speculating nature of trading in itself, many see it as random.
It is easy to dismiss Forex as just trying your luck at predicting, and that is what draws the idea of similarity with gambling and more likely excitement and getting rich quick!
A trading gambler sees indicators and charts as measures of likelihood instead of data, so they believe that everything is left to chance. To them, a strategy is pointless in a seemingly random industry.
As such, risk management is something they do not take into account, and why would they? It would be akin to using a shield if you do not know where the strike is coming from.
For trading gamblers, Forex is more about using assistance and luck than studying, and it is easier to get on that train than taking responsibility and making a real effort to apply and learn.
How Should A Forex Trader Think?
Now, many read the previous paragraph and nodded, the idea is obvious, but others saw their eyes open. The truth is that many traders, even those with positive numbers, think that way.
So, how should someone trading Forex see the market?
Well, the chance is always a reality. You cannot ensure that a strategy will yield a 100% chance of winning, but risk can be curbed through many methods.
Capital preservation is key
Good Forex traders realise that studying price movement and coupling market sentiment, along with fundamentals like political and economic events, is helpful for success. For real traders, Forex is a market of demand and supply, and those pinch-points are what I look out for.
In the end, you are trading a type of commodity that others want(to speculate on), so the market itself will inform you about your chances for trade depending on its situation and conditions
With that in mind, successful Forex traders design their strategy understanding how risk plays a part in trading, and they work around it through studying the market for indications in direction and remain patient for the correct conditions to present itself.
How Can You Leave Your Old “Strategy” And Embrace Real Trading?
All mistakes can be fixed by studying and taking trading as a serious career. That is why finding the right source of knowledge is critical.to understand the basis of risk and working a strategy—or if you are starting out from scratch— The Able Method course will certainly help you become the best trader you can be.
Through consistent effort and perseverance, you can be sure that you will get to the necessary point to make consistent gains Forex trading.
I know, I was once in your position! Do you want it bad enough?
Go to the course page here to find out more