[simple_series title=”Forex School”]
You might have read some articles discussing about the similarity between foreign exchange trading and gambling. Definitely, both share different methods though some people say that trading is just the same with gambling. In this case, traders have both chances in losing or winning. It is true that foreign exchange trading can deliver either high profits or massive loss.
Basically, forex trading is not based on luck, just like what gambling offers. Foreign exchange needs further analysis from the traders to apply theories in reading trading the foreign currencies.
In some cases, foreign exchange can be similar with gambling in terms of its volatility. There will be high profit and great loss which nobody can predict. Even professional traders can suffer from great loss and beginners can get good profits gradually when they are persistent in doing all theories in proper manner. The fluctuation in the forex trading market is rapid and some methods, which are considered good to apply in one circumstance, may not work in several cases. Successful traders are those who can make good strategies adaptation in very fast way—even faster than the market changes—to the current conditions of the market.
Discipline and proper methods should be combined in proper way so that traders do not only count on their luck. Some traders who have less experiences may get high profits in one time. But, they tend to be too much excited with this fast successes. Most of the time, they (hope you are not one of them) will go on trying other methods that they consider can get higher benefits. Less experienced traders can feel very panic of losing their chances to get profits and they will make rush decisions without considering whether the newly applied method works for their conditions or not. Panic traders who have just suffered from great loss may have been caught into the opposite of the main trend trading. They might think that they can get higher profits when they are going against the market. Keep in mind that following the trends of the markets remain as the best step in every circumstance. This will avoid drastic chances when there are market shifts.
The first thing that we can underline from the points above is that there is a major difference between forex trading and gambling because this is not a lucky game which is based on traders’ emotion. Smart knowledge about the changes market is what traders have to master before they take foreign exchange trading seriously. Just like a person who is deeply in love, emotions should not be involved before making any decision to get married. Impulse or instant decision will only kill them.
Giving up in trading forex is another mistake that any beginner does. Just like any other aspect I human’s life, giving up is the main indication of a loser. Nobody can get fast success unless he robs a bank without being caught. Our life is not a Hollywood movie and every good thing requires hard effort and high persistence of learning. So, do not gamble on your foreign exchange trading!