Originally posted by davidalfonsi

There are differencies between trading and gambling. Gambling is on a 50% probability scheme, trading is not. Examples? 40% of the retracements happen between 61.8 and 78.6 Fibonacci. Pivots. Trendlines. ...

 

Still 50-50 long or short, higher or lower, win or lose. When players have a good hand in a card game you could say that isn't 50-50 anymore, maybe 80-20. When someone chooses the stonger boxer to win, the probability of getting your money miltiplied is somewhat increased. I get what you're saying, but not eveyone follows Fibonacci and pivot points though.

Leebut, is a very good topic I think. If the people who "bet" in the market before analysing it would not exist, people who take consistant profit in the market would not exist either :)

Originally posted by Champ

Nice thread. I am also with paradise. Trading cannot be a gamble. I am not good in argumentation but the paragraph from Mark Douglas clearly tells the difference.

 

forex trading is not gambling

forex needs skills and ability to make a decision, analysis and predict the trend will go, and open position in the right place and know what should we do for all condition

Originally posted by newentry

 

forex trading is not gambling

forex needs skills and ability to make a decision, analysis and predict the trend will go, and open position in the right place and know what should we do for all condition

 

Yep, you just described gambling. Professional gamblers use systems and skills, they analyse and predict what's going to happen. They place their bet on the (right) horse, boxer, hand, ... depending on the conditions, environmental and physical. Professional gamblers don't just jump in on a bet.

Forex trading involves serious money so it is not about gambling but it is trading by doing proper study and analysis and observing market movements. Traders who do not nalyze the markets are said to be gambling .

Basically, professional traders do not take a lot of fun to enter and exit the market. Unlike players, they do not seek uplifting emotions, because they know what they will do on the market before making a trade.

In that case, neither do professional gamblers. Just like people who go out for a night of fun at the casino, newbie and inexperienced traders get emotional when they win or loose and stop when they are cleaned out. They go in thinking about what they can win, not what they are more likely to lose. Professionals in both arenas are fully aware of the risks of losing money.

Take a crowd of inexperienced traders all in the same room, all levered up on the same pair. I reckon they'd all start getting exctited when the trade moves in their direction, just as they would if they had a horse that was winning a race. When pips move against, I reckon they'd all switch emotions, just the same as they'd start getting angry at the second place horse catching up. In that respect they are the same.

Based on watching 'Floored', I'd disagree to some point that professional traders are without emotions. The pits in Chigago seemed to be brimming with them.

i must say that forex ia a business and gambling is a game of pure luck so we can't say that forex is gambling because in forex we have to get knowledge

because the more knowledgeable you are the more profit you can make per day from this field so i must say that comparing both is not a good thing.

forex trading is not gambling. in this trade, we must have the skillsand abilities in the trade. we must be disciplined and manage themoney that we use a well to be able to make a profit. different togambling that only rely on luck to win

Interesting comment about 'luck' and business. If people consider luck to be the result of what we cannot control, then trading also relies on luck, as the right side of the chart is blank and unknown for everyone. You're taking a punt that price will move up or down in your favour. It might, it might not, that's a gamble despite all the analysis you might do. Once all of that is done, it's out of your control.

Gambling is a huge business and is expanding. How can it not be a business? I'd hazard a guess that 'the house' and 'the market' get's back more than it loses. so that means that some traders and gamblers win and make a living from it while more lose. Maybe people think that gamblers are only the millions of people on holiday in Las Vegas that really have no clue about managing their risk, and blow the lot in a few nights.

Before professional gamblers place bets, they decide howmuch risk they want on the table, just the same as traders. They use skills and make their analysis. They don't want to play poker against a strong opponent. Neither do they want to bet on the weakest boxer or golf player. They do a strength analysis, which is probably more than alot of traders do. Granted, slots are probaly not included there, but the gambler might observe them.

I find it somewhat amusing that traders are looking at only the superficial aspects of gambling compared to trading. A balanced view cannot be made with only one eye open. I am sure many people make a lot of money from 'spread betting', yes tax free trading in the UK classed as gambling. Now how about that.

I think the problem with the word 'gambling' is only psychological because no matter how it is dressed, trading is just the same as gambling in so many ways. It's no different to people hiding that they are a salesperson by redressing themselves as being in marketing or retail.