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Are You Investing Or Gambling?

Discussion in 'Forex Discussions' started by painofhell, Jul 29, 2016.

  1. painofhell

    painofhell Content Contributor

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    Gambling is defined as staking something on a contingency. However, when trading is considered, gambling takes on a much more complex dynamic than the definition presents. Many traders are gambling without even knowing it - trading in a way or for a reason that is completely dichotomous with success in the markets.

    In this article we will look at the hidden ways in which gambling creeps into trading practices, as well as the stimulus that may drive an individual to trade (and possibly gamble) in the first place.

    Hidden Gambling Tendencies
    It is quite likely that anyone who believes they don't have gambling tendencies will not happily admit to having them if it turns out they are in fact acting on gambling impulses. Yet discovering what drives us to take certain actions can create change within us as the underlying motivators are discovered by the conscious mind.

    Before delving into gambling tendencies when actually trading, one tendency is apparent in many people before trading even takes place. This same motivator continues to impact traders as they gain experience and become regular market participants.

    Social Proofing
    Some people may not even have an interest in trading or investing within the financial markets, but social pressures induce them to trade or invest anyway. This is especially common when large numbers of people are talking about investing in the markets (often during the final phase of a bull market). People feel pressured to conform by their social circle. Thus they invest so as not to disrespect or disregard others' beliefs or feel left out.

    Buying some stocks or placing some trades to appease social forces is not gambling in and of itself if people actually know what they are doing. But entering into a financial transaction without a solid investment understanding is gambling, regardless of what the social media portrays. Such people lack the knowledge to exert control over the profitability of their choices. There are many variables in the market, and misinformation or disinformation within investors or traders creates a gambling scenario. Until knowledge has been developed that allows people to overcome the odds of losing, gambling is taking place with each transaction that occurs.

    Contributing Gambling Factors
    Once someone is involved in the financial markets, there is a learning curve, which based on the social proofing discussion above may seem like it is gambling. This may or may not be true based on the individual. How the person approaches the market will determine whether she/he becomes a successful trader or remains a perpetual gambler in the financial markets. The following two traits (among many) are easily overlooked but contribute to gambling tendencies in traders.

    Gambling (Trading) for Excitement
    Even a losing trade can stir emotions and a sense of power or satisfaction, especially when related to social proofing. If everyone in a person's social circle is losing money in the markets, losing money on a trade will allow that person to enter the conversation with her/his own story. When a person trades for excitement or social proofing reasons, it is likely that she/he is trading in a gambling style rather than in a methodical and tested way. Trading the markets is exciting; it links the person into a global network of traders and investors with different ideas, backgrounds and beliefs. Yet getting caught up in the "idea" of trading, the excitement, or emotional highs and lows is likely to detract from acting in a systematic and methodical way.
     
  2. Sharon Higgins

    Sharon Higgins New Member

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    I am obviously investing, but there was a time once when I use to do pure gambling, it’s really where it was tough for me, but thankfully I overcame that phase and that’s why today I consider myself been a better trader. This change for me came thanks to OctaFX broker since they helped big time through their educational setup, demo contest facilities with unlimited prizes to be won as well and much more, it’s just what helped me achieve great rewards. I regularly participate on these demo contests and I dare say, I get excellent practice and always able to win good prizes as well, so that’s why it’s ideal way to learn and start trading instead of gambling.
     
  3. sininfinity

    sininfinity Active Member

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    Technically few people try to make forex trading gambling. Everyone has their own views. To me forex trading is a business. And I have heard about match fixing in cricket games. So those who do match fixing are not gambling though technically it falls under gambling.
     
  4. Mistalee

    Mistalee New Member

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    I believe in Investing as Gamble will depend on mere luck and I don't wanna do that. Forex Trading is a business and not a Gamble.
     
  5. AwaberA

    AwaberA New Member

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    I'm investing. I think the main thing in forex is to act rationally. I'm trying to use all the available bonuses and participate in all available contests. At the moment, I'm using FreshForex's 101% bonus and taking part in their Great Trading Contest.
     
  6. Mistalee

    Mistalee New Member

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    Yeah...! All you need to do is to choose a broker and trade, than to mere rely on luck and take it as a Gamble.
     
  7. sininfinity

    sininfinity Active Member

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    Lol. The way you put it, surely it falls under gambling. No analysis, no thoughts, just look at the chart and put a trade without having a bias.
     
  8. Mistalee

    Mistalee New Member

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    Many traders trade blindly, they consider the trading as a Gamble, but little do they know that it could be everything but not a Gamble.
     
  9. AwaberA

    AwaberA New Member

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    As for me, I do not trust PAMM. They are often used for fraud, now there are lots of complaints about PAMM and, as a rule, deceived investors can not get their money back. I like the affiliate program. I am paid good rate in referral program of freshforex. They give $ 20 for 1 lot! And another plus. Regardless of the type of tool I get the same reward for all of them.
     
  10. Mistalee

    Mistalee New Member

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    Forex may be a business, or a job, but it could never be a Gamble, and many traders take it as a Gamble, which make them lose everything.
     
  11. Martha

    Martha New Member

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    Some people think that Forex is a gambling and they gambling here and only depend on luck. But in my view Forex is a real business and gambling is not involved in the business of Forex.Forex purely depends on hard work and you should do more practice to get experience in Forex.I have leaned this business from my broker https://www.mxtrade.com/
     
  12. Mistalee

    Mistalee New Member

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    Forex could never be a Gamble, it all depends on mere luck, while Forex Trading Requires lots of knowledge and skills and experience.
     
  13. AlanHurst

    AlanHurst New Member

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    I am sorry Mistalee, but if you are banking on luck to get you through then things are seriously wrong at your end. However, I never consider Forex anywhere near gambling level instead I put it as a great work if we do it through gaining proper knowledge and experience, it’s not easy to do this but if we are determined then it’s easier and due to broker like OctaFX, it’s easier with their epic educational structure which is not just simple but on the spot.
     
  14. Mistalee

    Mistalee New Member

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    Lol...! Alan Read my post first and then reply, I am against using Forex Trading as a Gamble. I never depend on luck as it would require lots of knowledge and experience.
     
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