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Forex gambling?

  • #21
  • Oct 10, 2006 4:32am Oct 10, 2006 4:32am
Hi everybody,

This is the first time I reply a message at Forex Factory. I strongly disagree with those saying that forex is like gambling.

Why? Because I have realized that if you know how to use technical indicators, supports, resistances, trends, etc., you can reduce risk.

If I had to compare a good forex trader with something, it would be like throwing a coin: You can really reach that 1/2 probabilities of success -of course, adding that you have the chances to have reduced losses trades versus bigger winning ones-.

For me, forex trading is like a chess game: "strategy & tactics" is the name of the game. In chess there is no luck, but only good and bad decisions. Just like in real life.

That is my opinion.

iiivb
  • #22
  • Oct 10, 2006 4:40am Oct 10, 2006 4:40am
Quoting RizkInvestments
Anyhow, trading forex can certainly be classified as gambling. But what in life isn't gambling?
Well, my wife used to which gambled instead of doing Forex in the beginning since she thought my chances of profit would be bigger in Vegas! She has come around and changed her mind at this point
//C
  • #23
  • Oct 10, 2006 6:52am Oct 10, 2006 6:52am
gambling is when you bet money on a chance to win that is less then 50%.

investing is when you bet money on a chance to win that is greater then 50%.

so depending on how you trade, it could be gambling
  • #24
  • Oct 10, 2006 7:53am Oct 10, 2006 7:53am
I dont think it really matters what Forex is. I dont know much about gambling since dont gamble much. But then again, some part of trading forex has something to do with gambling. For example,


We enter the market when we feel or we know that the odd of winning is in our side but we are not 100% sure so we put a stop loss, right? Now, say it is the year 2002. Its the World cup in Japan/Korea, France the previous world champion (LONG) vs Senegal a country most of us never heard of (SHORT), if you have to bet on one side, which side would you bet on? LONG or SHORT? Thanks to SL we dont loose it all.

Happy Trading
Najib
I Love Forex Factory!
  • #25
  • Oct 10, 2006 9:15am Oct 10, 2006 9:15am
Quoting Yoda_Glenn
I don't mean to start a flame war here, but I have been doing some money management practice, as well as studying the "art" of technical analysis and I say Forex is far from gambling. Why? For a couple of reasons. Number 1: Technical analysis is nothing more than psychology, it's the interruptation of greed and fear, and not some random numbers game. Technical analysis is not a random act of gambling, as there are definate "patterns" to the psychology of buying and selling. Sure, technical analysis is not an exact science....but niether is psychology, yet no one calls psychology "gambling."

Once again, I don't mean to start a flame war, but to put it bluntly, the title of this thread reminds me of the controversery with guns. Are you gonna blame yourself, or are you gonna blame THE GUN for blowing your OWN brains out? It seems to me that only ametures blame their loss and pain on the Forex, while the professionals take FULL responsibility for their own mistakes...learn from them...and go on to make millions. It's that same old nasty trait that the poor lack, but the rich seem to have an abdudance of, it's called PERSONAL ACCOUNTABILITY.
Professional gambling (and there ARE successful professional gamblers out there) also requires knowledge (particularly of statistics!), good psychology and LOADS of discipline. Sorry, amigo but you have failed to differentiate
"The market will rally from this or lower levels"
  • #26
  • Oct 10, 2006 9:19am Oct 10, 2006 9:19am
Quoting iiivb
Hi everybody,

This is the first time I reply a message at Forex Factory. I strongly disagree with those saying that forex is like gambling.

Why? Because I have realized that if you know how to use technical indicators, supports, resistances, trends, etc., you can reduce risk.

If I had to compare a good forex trader with something, it would be like throwing a coin: You can really reach that 1/2 probabilities of success -of course, adding that you have the chances to have reduced losses trades versus bigger winning ones-.

For me, forex trading is like a chess game: "strategy & tactics" is the name of the game. In chess there is no luck, but only good and bad decisions. Just like in real life.

That is my opinion.

iiivb
Ha!

If relying on tactics such as reaching of probabilities of success to 1/2 is not gambling then I don't know what is. That's exactly the type of stuff gambling is based on.

You compare forex to tossing a coin. Need I say more?
"The market will rally from this or lower levels"
  • #27
  • Oct 10, 2006 9:19am Oct 10, 2006 9:19am
Simply forex is not gambling as long as you dont use leverage more than 100:1
  • #28
  • Oct 10, 2006 9:20am Oct 10, 2006 9:20am
Quoting witchazel
gambling is when you bet money on a chance to win that is less then 50%.
<------ Now that's one definition no one has seen or heard of before. Two points for creativity.....but.....bzzzzzzzz...wrong
"The market will rally from this or lower levels"
  • #29
  • Oct 10, 2006 9:24am Oct 10, 2006 9:24am
Quoting fx54xHRB
Simply forex is not gambling as long as you dont use leverage more than 100:1
Of course! Just like roulette is not gambling as long as you don't risk more than $5 per day
"The market will rally from this or lower levels"
  • #30
  • Oct 10, 2006 9:25am Oct 10, 2006 9:25am
Quoting witchazel
gambling is when you bet money on a chance to win that is less then 50%.

investing is when you bet money on a chance to win that is greater then 50%.

so depending on how you trade, it could be gambling
wrong, you can bet on soccer match with more than 50% chance to win and is still gambling
  • #31
  • Oct 10, 2006 9:28am Oct 10, 2006 9:28am
Quoting LightKeeper
Of course! Just like roulette is not gambling as long as you don't risk more than $5 per day
roulette is a bit different than forex
  • #32
  • Oct 10, 2006 9:31am Oct 10, 2006 9:31am
Quoting fx54xHRB
wrong, you can bet on soccer match with more than 50% chance to win and is still gambling
Hey, that's a GREAT POINT. Sports-betting is considered gambling and yet just how much analysis and technical knowledge and discipline does successful sports betting require? loads and loads and loads.

You can bet on a game between the Brasil national team and Degrassi Junior High, with odds 10000 to 1 and you're still considered to be gambling. In forex we don't even approach odds like that
"The market will rally from this or lower levels"
  • #33
  • Oct 10, 2006 9:33am Oct 10, 2006 9:33am
Quoting fx54xHRB
roulette is a bit different than forex
Of course. So is riding a bicycle. But so what? Let's not digress. The point was, it doesn't matter what you leverage. Leverage is just borrowing money.
"The market will rally from this or lower levels"
  • #34
  • Oct 10, 2006 9:39am Oct 10, 2006 9:39am
I just can't resist.

What is not gambling?
I am going to get up now and go to the kitchen and get another cup of coffie. I understand that there are about 1500 fires caused by coffie makers per year. I am going to bet I make it back. I will let you know.
  • #35
  • Oct 10, 2006 9:41am Oct 10, 2006 9:41am
Did you make it back? Should I call 911?

scott

Quoting bapxyz
I just can't resist.

What is not gambling?
I am going to get up now and go to the kitchen and get another cup of coffie. I understand that there are about 1500 fires caused by coffie makers per year. I am going to bet I make it back. I will let you know.
  • #36
  • Oct 10, 2006 9:44am Oct 10, 2006 9:44am
I'm back. I also stopped at the bathroom ( feeling brave today) cause I understand my chances of ending it all are really up in the lue. "spelling ??"
  • #37
  • Oct 10, 2006 9:48am Oct 10, 2006 9:48am
Quoting bapxyz
I just can't resist.

What is not gambling?
I am going to get up now and go to the kitchen and get another cup of coffie. I understand that there are about 1500 fires caused by coffie makers per year. I am going to bet I make it back. I will let you know.
Yes but statistically speaking most people die in their own beds. Maybe the kitchen isn't a bad idea after all.

And on another note....sure it's easy to simply say "everything's gambling". But that defeats the entire "debate".

But of course you're going to go to the kitchen and get a cup of coffee. But would you jump off a tall building with a parachute? Maybe you would. Most likely you wouldn't. Because you DO see the difference after all.

As for forex, it has EVERY element of gambling. Starting with the first; we're placing bets on currency movements. We're not really buying or selling anything, you know.
"The market will rally from this or lower levels"
  • #38
  • Oct 10, 2006 9:49am Oct 10, 2006 9:49am
Quoting LightKeeper
Of course. So is riding a bicycle. But so what? Let's not digress. The point was, it doesn't matter what you leverage. Leverage is just borrowing money.
I will try explain it :


If you have acc. with $10,000 and your broker offers 100:1 leverage:
a)You will take trades with 5 lots and s/l 50 pips.... 2 wrong trades and you are out...you can not do next trades with 5 lots(gambling)
b)trades with 0.5 lot and s/l 50 pips...you can do many wrong trades and you arent out( investing)

so it must be much less than 100:1 ....
  • #39
  • Oct 10, 2006 9:53am Oct 10, 2006 9:53am
In leiu of anything better to contribute, we British spell leu as loo, which is actually an abriviation of lavatory, which comes from the French, laver, to wash. OK, I'll get my coat!
  • #40
  • Oct 10, 2006 9:53am Oct 10, 2006 9:53am
Quoting fx54xHRB
I will try explain it :


If you have acc. with $10,000 and your broker offers 100:1 leverage:
a)You will take trades with 5 lots and s/l 50 pips.... 2 wrong trades and you are out...you can not do next trades with 5 lots(gambling)
b)trades with 0.5 lot and s/l 50 pips...you can do many wrong trades and you arent out( investing)

so it must be much less than 100:1 ....
fx54xHRB,

Thanks for explaining leverage to me. Finally I know what it's about. Took me 14 months of trading to finally find you. Thank you, really

Oh, now I see what you're saying. You're saying that if you risk all your money it's gambling. If you risk so little that you don't stand a chance of blowing your capital anytime soon, it's not gambling. But hey, hang on a minute. That's what I just said before! Betting $5 on roulette isn't gambling
"The market will rally from this or lower levels"
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