Thursday, January 28, 2016

Forex vs Gambling



I heard this question, and have seen many times in internet asking this question from experts.


It’s really an intriguing questions isn't it?

First of all to clear this out some should have to have a better understanding on both Subjects, if you 

Don’t know what Forex trading is... You better not to make any assumptions.

So What Forex trading really is...

If your search the internet you'll find plenty of answers explaining about Forex trading.

As for the basic understanding Forex trading can be described as 

Selling and buying Currencies and repeating the same to make profits.

For an example, think this scenario..., if the price of Bread change every minute in to a new price in the retailer shop where you buy them. And you see the current price as 1.2 USD. You buy one bread and as you finish buying, the price changes back to 1.5USD in the next minute. Now if someone comes and ask you to give it to 1.5USD, if you make the business, at that point you make a profit. But all this is a coincidence for you as you were not aware that the price will go up. And you may get interest of this and you will buy more breads and wait till the price go up, and you really don't have any idea of the logic behind the price changing. Then this is called gambling. Depending on luck.

But if you know what will happen next by doing analysis of the market, and do this, no one can tell you are gambling.

And the other way around in gambling, not every gambler just focus on their luck, they also do some analysis, but only thing that may only depend on someone’s thought. There you won't find any good resources for analysis unless you are a professional, who can understand people by their gestures. 

Compared to gambling Forex traders has more resources for their analysis to make decisions by their own with confidence rather than depending on luck. 


But as I believe most of the Traders trust the luck and little of analysis. So be careful.





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