Answer: As far as my research on this topic, any outcome that you predict on pure chance, gut feel, and luck without any previous knowledge or understanding of the process is considered gambling. This also includes ignoring the risk and danger involved in the prediction.
For now, let's leave online trading, let's just see an example of practical life.
If a person invests in a business without knowing the risk to reward ratio, market needs, previous experience, then the person is gambling is what you should know.
All that glitters is not gold similarly if a business works for many does not mean it will also work for a person who doesn't know A or B about that business.
Let's come back to online forex trading. You need to understand the risk involved in it. like any business has profit, loss, risk, and reward involved in it, Forex, stock, or any online trading also involves profit, loss, risk, and reward it.
This way if you see there are 4 types of traders in the field today.
1. Who does not know anything about trading but keep trading to make money2. Who know half-cooked things about trading and keep trading to make money
3. Who know or do not know but greedy and want to become a millionaire by night
4. Who understands trading completely and has accepted that they should do it like a business and not like a become rich quick scheme. Takes a calculated risk and maintains a money management strategy.
It's up to the person how he wants to do it. Many do it without knowing the market, having no knowledge of what's trend what's SNR what's Price action, how market moves, etc.. were as some do it with half knowledge about it. Almost 50 - 60 % of traders trade on pure chance, gut feel, and luck lose their money.
Hope you know that a person who doesn't know anything about something is far better than a person who knows half of that something. 20 to 35 % trade knowing only half of the story and rest on luck.
A person who is experienced but greedy cannot hold his temperament loses all investment that he/she earned. 2-3% fall in this type of category, impatient, not waiting for the right moment.
Lastly, the person who has understood that trading is medicine should be taken on time and limited because too much medicine kills and a little on time cures. 1-2 % make some profit out of the market and leave happily.
If you further go in deep, you can allocate some percentages to platform selection, manipulations, etc...
So by this, you can understand why for many trading is gambling and for some its source of income.
Hope this will help you analyze whether trading is gambling or traders gamble.
If you can learn and understand the core concept of trading which is the Price action, you can then easily find the difference between trading and gambling
Check this free Binary options course for learning price action and NON-Gambling Trading
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⛔ This is not investment advice, your capital is at risk. You should never invest the money that you cannot afford to lose ⛔
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