If you were presented with a person that is engaged in an activity that can either indulge him or her with buckets of riches or complete loss of belongings your instant guess on what the activity is would be gambling. That is usually the image portrayed when someone outside the online trading industry hears how the forex world works, however this is not the case. Sure, gamblers and traders may share some very striking characteristics but their core difference is analysis.
One of the things that gambling and forex trading have in common is the way the foreign exchange or stock market works in relation to poker table. What drives both people to these two area is ideally the opportunity to earn money, and usually a small amount of money is barely enough, if you’re in it you are in to win big or else you should pack up before you even get started. Even the procedures can be related to each other, in a casino filled with countless tables the gambler will choose the one that feels right to him. The same way a trader will choose the right broker after going through a stunning number of prospective brokers in order to settle on one.
This is where the differences come forward, the gambler will have to choose his cards and his moves on the spot without any context. A trader however knows what products he is aiming for, whether its currency, spot metals or anything else a good trader will never accept going in blind. This on the other hand is not the case will all the traders because it’s no secret that some traders do regard online trading as a gambling sport, but these people are never under any circumstances considered traders they are just gambling on a different field.
A true trader knows analysis, he or she has gained enough knowledge on the product of interest before making the decision of making an investment. A true trader is also the one who calculates the wins and losses before a transaction is even completed, because he or she is aware enough placing all your capital on a single investment is a fool’s game, a gamblers game. Traders work differently, they work their way up gradually and suck up as much information and data available to them in order to initiate the thought of their next move.
Gambling alternatively does not offer the option of analysis, any form of analysis inside a gambling environment is considered cheating because counting, fixing, switching does not illustrate any actual talent but rather it reaffirms how gambling is just a game of luck and even the most successful gambler’s luck will eventually run out. Trading though is all about what the trader knows and how it’s used to his or her advantage, sure there are no definites and yes it is all about estimating and forecasting but the numbers have the ability to speak to true traders and those are the kind of traders that rise further than all the others.
So next time you think that online forex trading is just gambling with suits, take a step back and look at what’s really going on behind the numbers.
