Is Forex Trading Same As Gambling?

I met a friend in the weekend and I haven’t seen this friend of mine for quite some time.

He was in town and we decided to make time to do some catching up.

We chat about the usual stuff like how he is doing and vice versa.

I told him that I am trading forex now and the first thing he asled was…

Isn’t Forex trading like gambling

I found it absurd to hear this kind of question coming from a friend who is a university graduate but he majored in science. (but so was I)

So, I told him it will take a long time to explain but he insist.

So I thought it would be good to share my answer here.

So if Forex trading like gambling?

My answer is yes if you treat the forex market like a jackpot machine or the roulette machine that you can find in Genting Highland’s casinos.

When you out down your money on a bet, you are just hoping that luck is on your side and the outcome will be in your favour.

But casinos have very high odds against you.

Take roulette for example.

Say that you bet on the number 9.

You only win when the ball ends up on the number 9 spot.

Any other number that, you lose.

So the odds of you winning are so small.

So, I went on to explain to my friend on how we make money by winning Pips in forex.

Yes, we need to cover the spread charged by our forex brokers but that is only a few pips.

Once we cover that, everything else is profit.

But if we enter the forex market blindly without any reasoning or strategy in place, we are considered gambling because we are taking a chance and hoping that the market will go our way.

Forex trading is not gambling when a trader treats it like a profession or a business.

There will be opportunities for us to enter the market and times when we just need to stay away and wait.

Isn’t this the same in stock market trading or property investment?

Forex traders will use tools like forex indicators to analyze patterns to decide on the direction of the market.

This can be called as the forex trading system and these systems has winning ratios that can be judges before put into use.

But like gambling, a forex trader will suffer huge loss when emotions take over the power to follow their trading system.

Similar to gambling, when you are on a winning streak, you probably feel that every bet you take will go your way.

This happens in Forex trading as well.

But with practice through time, a forex trader will be able to overcome this problem and develop a discipline required to be a successful trader.

So is forex trading like gambling?

NO, if you know what you are doing…

It is as simple as that.

happy trading

 Yours sincerely,




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