Investing in Forex as a speculator | Forex Factory

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Investing in Forex as a speculator

  • #1
  • First Post: Sep 7, 2023 11:02pm Sep 7, 2023 11:02pm
Note. Forex is gambling by being a game of change whereby we can't guess the result with 100% accuracy. So trade at your own risk.

The idea is you're working and so you have extra money after expenses, a bit of index fund you save over time, and you have a bit more than you can use for forex. This a bit more is the only thing you're allowed to gamble.

1. Use micro lots. Microlots will allow you to have lower risk than the standard and therefore give you more chances to increase your capital.

2. Risk of atleast 1rr so you can scale your capital consistently.

3. I'll classify the risk as to aggresive which is risk =1/20 of your capital to Conservative which is risk = 1/200 of your capital.

You must not change the risk. Whether you win or lose for every 20 trades or 1 month.

This is a practice of consistency.

4. Choose a strategy that works best for you. Example for me would be the ny range of 8 pm to 5 am ny time as range and breach of which before 8am ny time is allowed for the signal. This for a simple 1 to 1 rr.

You of course can choose what you like. What is important is that you focuse solely on 1 model and be repetitive with it.

Now that you have the process the idea is this.

You deposit your capital, you trade, you make 3 to 5%. You withdraw it all. The lag time between this and you receiving the money will be time for rest.

Once this is done. Save enough money to double the capital or atleast add something to it and again repeat the game.

3 to 5%. Withdraw lag time. Deposit a bit more. Doing this you'll ensure consistency. And enjoy trading versus rushing it.

Note. This is not a get rich scheme. This is extra money. If it's big enough you can withdraw and use it to invest in something else or treat yourself.

Now if you are broke. Please don't trade. Get a job, make sure you have excess. And only the excess you trade.
Trading is gambling. So gamble responsibly.
  • #2
  • Sep 28, 2023 9:45am Sep 28, 2023 9:45am
Trading cannot be gambling, think carefully and compare the differences between trading and gambling, trading = buying a item with the hopes of making a profit at the sale. Gambling = buying a item with the hopes of making huge returns with odds that is not in your favour in other words every gambling game is completely rigged against you hence the house always win. Nobody ever expects to make a million off selling a single pack of chips so why would you a slot machine.
  • #3
  • Sep 29, 2023 6:28pm Sep 29, 2023 6:28pm
Quoting Latanielv
Trading cannot be gambling, think carefully and compare the differences between trading and gambling, trading = buying a item with the hopes of making a profit at the sale. Gambling = buying a item with the hopes of making huge returns with odds that is not in your favour in other words every gambling game is completely rigged against you hence the house always win. Nobody ever expects to make a million off selling a single pack of chips so why would you a slot machine.
You are entitled to your position.

i justifiy my position in the sense that one has to rely on the probability that one can be wrong even with a high winrate. That wach individual trade we make is not related to the past one. That price will react differently to the same setup.

What i mean to say it, for example, if we see a hammer, price may go up as expected. But it could also go down too. We only know at the time the trade ends.

Trading is gambling. So gamble responsibly.
  • #4
  • Oct 2, 2023 4:15am Oct 2, 2023 4:15am
Quoting Sovy
{quote} You are entitled to your position. i justifiy my position in the sense that one has to rely on the probability that one can be wrong even with a high winrate. That wach individual trade we make is not related to the past one. That price will react differently to the same setup. What i mean to say it, for example, if we see a hammer, price may go up as expected. But it could also go down too. We only know at the time the trade ends.
I understand what you are saying but investing cannot be gambling if proper research is done. You could in fact trade with a gambling perspective as most of the retail space do when trading based off random lines on a chart however when proper due diligence and research is done it is hard to be wrong about a stocks long term direction, this applies to the Forex market aswell. The reason it feels like gambling is because you have not acquired enough information on the traded asset therefore confidence is nil and every trade feels like 50/50.
  • #5
  • Oct 2, 2023 4:30am Oct 2, 2023 4:30am
Quoting Latanielv
{quote} I understand what you are saying but investing cannot be gambling if proper research is done. You could in fact trade with a gambling perspective as most of the retail space do when trading based off random lines on a chart however when proper due diligence and research is done it is hard to be wrong about a stocks long term direction, this applies to the Forex market aswell. The reason it feels like gambling is because you have not acquired enough information on the traded asset therefore confidence is nil and every trade feels like 50/50....
This is word play. I feel the proper term is there is chance involved whether research is done or not per trade. Only higher probability for a well researched one.
Trading is gambling. So gamble responsibly.
  • #6
  • Oct 2, 2023 5:34am Oct 2, 2023 5:34am
Quoting Latanielv
Trading cannot be gambling, think carefully and compare the differences between trading and gambling, trading = buying a item with the hopes of making a profit at the sale. Gambling = buying a item with the hopes of making huge returns with odds that is not in your favour in other words every gambling game is completely rigged against you hence the house always win. Nobody ever expects to make a million off selling a single pack of chips so why would you a slot machine.
In gambling you rely purely on luck (even knowing that the odds are against you), but it's perfectly OK, since single outcome isn't governed by probabilities (house wins/loses on average as their wins cancel losses, leaving them with some profit). In contrast in trading it is quite possible, though hard to create a system with positive odds for you (for example arb strategies, some hedging portfolio etc.). This is the biggest difference between trading and gambling.
  • #7
  • Oct 2, 2023 11:21am Oct 2, 2023 11:21am
In trading as in any other business the deposit matters. With the small deposit it is hard to make anything on the market. Especially to comply with the risk management rules you are talking about.
But overall, I kinda agree with all the points made, except forex is gambling. The word gambling has a very negative connotation among the general public.
  • #8
  • Oct 2, 2023 11:53am Oct 2, 2023 11:53am
Quoting Raincrusher
In trading as in any other business the deposit matters. With the small deposit it is hard to make anything on the market. Especially to comply with the risk management rules you are talking about. But overall, I kinda agree with all the points made, except forex is gambling. The word gambling has a very negative connotation among the general public.
If one's deposit is small, indeed it is hard to make money and based on the broker if it is standard lot or micro lot, one is also limited.

Ex. 25 pip risk is my standard ftmo risk that I would expect any trader to use, unless they want their own based on market structure.

So in 0.01 that is 2.5 dollars max risk. For 5% capitsl, 2.5 x 20 is 50dollars. So a trader should have atleast that amount of money.

1% of that is 5 pips and .5% is 2.5 pips risk. It does not allow the trader a good enough chance to trade.

It's something i agree with mark doughlas that forex is indeed gambling by being a game of chance. But that does not mean one can't use an edge. Like pro gamblers use methods to win over the house.
Trading is gambling. So gamble responsibly.
  • #9
  • May 26, 2025 10:47pm May 26, 2025 10:47pm
Solid risk management approach! Love the emphasis on micro lots, fixed risk ratios, and consistency. Trading only with 'excess' money is key, forex isn’t a lifeline, it’s a side hustle. Discipline wins long-term.
  • #10
  • May 27, 2025 4:31am May 27, 2025 4:31am
Forex trading is only gambling if you're trading without a strategy, no risk management, and purely based on emotion or luck. But when you approach it with a solid plan, a tested edge, and discipline, it's more like managing probabilities—much closer to a business than a bet. The line between trading and gambling really depends on the trader.
  • #11
  • May 30, 2025 4:19am May 30, 2025 4:19am
It seems a lot of marketing around Forex tries to make it sound like traditional investing, but everyone here stresses it's pure speculation. Is it common for beginners to confuse these two concepts initially?
  • #12
  • Last Post: Edited 12:06pm Jun 16, 2025 4:42am | Edited 12:06pm
Trading on Forex demands a systematic approach and effective risk management. Without this, you can lose your investment in a short time because the market is very volatile. There are many risk control principles in trading are like those in online gambling. I visited https://casinosfest.com/casino-payme...line-gambling/ and became convinced of this. It provides a detailed explanation of how Canadian banks interact with online casinos. This highlights the need to grasp financial mechanisms. It’s key to stay in control and prevent unnecessary losses in risky areas.
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