Trading vs gambling
You might as well take statisttics money to Vegas instead, and ttrading it away. Once your money is all gone, at least it was entertaining. You have to remember that what differentiates trading from gambling is being able to bend the odds in your favor. Casinos are profitable year, after year, after year, despite having a business where the outcome of each card laid down, dice roll, or slot pull is unknown each and every time. The game is fairly simple. In Australia, it is disappointing companies can promote forex trading to unsophisticated investors, by advertising prominently in magazines and online.
Forex Trading vs. Gambling: Is There a Difference?
Of course some investors do better than this, and some do worse, but buying and holding shares in a diversified portfolio should yield a solid return over long periods. But in the case of exchange rates there is no reason to believe investors receive anything more than a zero return from trading. There is very strong evidence that a currency like the Australian dollar moves in directions that are completely unpredictable. Firstly, there are a number of Forex traders who are able make consistent returns from trading the FX markets. Gambling typically precludes gamblers from being winners in the long run, due to the fact that most games have a built in advantage for the house.
For instance, the game of Roulette will see the player go bust tradong though this may take a considerable amount of time. With FX, there are numerous instances where traders have been able to remain consistently profitable over the long-run, which suggests for skilled traders FX is not akin to gambling. Secondly, when traders enter into a position there are generally rational reasons for doing so. The trader may have used technical analysis or have fundamental reasons for entering into a position. This seems to be another way in which Forex trading differs from gambling. A person playing Roulette simply places bets on his gut feeling, and if we were to discover a FX trader doing the same thing we would likely say he was just gambling.
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