Difference between a forex trader and a gambler

[Sukii]

In my opinion a lot of traders today can be classified as gamblers this is because they they do not follow a certain path that I believe leads to succes yes yes I know we all have to take risk in other to make it big in the market but that is still no reaso. Why a trader will risk it all with huge lots size and not even put up stop loss this is basically just being Reckless
For me the most important thing in a trade is stop loss especially when you are trading a very volatile pair like XAUUSD  which could change direction in any time especially when a news is incoming
And after using multiple huge lots sizes and blowing the account they say forex is a scam or begging to compare It to gambling
Well this is just my opinion

[Agbe]

In my opinion a lot of traders today can be classified as gamblers this is because they they do not follow a certain path that I believe leads to succes yes yes I know we all have to take risk in other to make it big in the market but that is still no reaso. Why a trader will risk it all with huge lots size and not even put up stop loss this is basically just being Reckless
For me the most important thing in a trade is stop loss especially when you are trading a very volatile pair like XAUUSD  which could change direction in any time especially when a news is incoming
And after using multiple huge lots sizes and blowing the account they say forex is a scam or begging to compare It to gambling
Well this is just my opinion

Trading and Gambling are two different things although people think they are the same thing. As a forex trader you can gamble in the market when you don't apply risk management and also when you decide to trade against the trend, when you go in the opposite direction the Market that's considered to be a very huge risk or you might just call that gambling. The steps to forex trading involves discipline and consistency,  the dynamics of the market has systems and logics that can be studied but the catch To this is that it's not very easy to study, you need time to mastery terms and technicalities.Gambling on the other hand has no systems whatsoever everything is just based on luck. When playing a casino game like dice there's nothing to study on this everything is just luck based.

[joniboini]

I agree that some people can't manage risk properly, but do you have any data on how many traders don't use stop loss or any risk management strategy when they trade volatile forex pairs? Your perception might be biased because disciplined traders won't complain on social media or forums. Then again if there is any research supporting your conclusion I'd not be surprised either.

I don't think gambler is the right term to describe the behavior you described above. If they trade with no discipline, pick risky pairs and don't want to read the chart properly, complain and whine that the broker is cheating with no proof to back it up, etc, they're just terrible traders.

[Agbe]

I agree that some people can't manage risk properly, but do you have any data on how many traders don't use stop loss or any risk management strategy when they trade volatile forex pairs? Your perception might be biased because disciplined traders won't complain on social media or forums. Then again if there is any research supporting your conclusion I'd not be surprised either.

I don't think gambler is the right term to describe the behavior you described above. If they trade with no discipline, pick risky pairs and don't want to read the chart properly, complain and whine that the broker is cheating with no proof to back it up, etc, they're just terrible traders.

Gambling is definitely the right term for it because they know how they the implications of picking risky pairs but they still go ahead to make that decision expecting a reward, anything financial trade that risk management is applied is considered to be a gamble. There are also traders that aren't new to trading but once in a while they try to trade against the trade hoping to get a huge profit at the end of the day, I think this is the same thing as gambling if you ask me, this isn't a strategic trade they are just relying on luck.

[Aanuoluwatofunmi]

A forex trader is a businessman, an investor and a trader, who sees potential in currency exchanges, take advantage in the opportunity on the rise and fall of a coin, while a gambler is someone that is in for being entertained by playing bet on games, they make use of casinos to gamble, uses their money to bet and play games in their different varieties, all these are what we should take into observance.

[Rruchi man]

Why a trader will risk it all with huge lots size and not even put up stop loss this is basically just being Reckless

I agree with your opinion because I have a friend who trades like this and I have often told him that his approach to trading is no different from gambling because based on his actions, instead of trying to improve his analytical skill by increasing his knowledge so they be able to take better risk, his approach is just reckless. People who trade this way often do not have long-term intentions for trading because even if they try to continue the numerous failures and losses that they will experience in the market due to this unconventional trading style with discouraged them from continuing.

[Aanuoluwatofunmi]

A gambler will look for money only for him to gamble and have fun for a specific duration of time, while a trader will only be more concerned on how he could earn money by investing and trading his asset to make more, this is how many grow their money while those gambling will only have the idea or mindset of having fun while gambling after they would have make some earnings or savings.

[Asiska02]

In my opinion a lot of traders today can be classified as gamblers this is because they they do not follow a certain path that I believe leads to succes yes yes I know we all have to take risk in other to make it big in the market but that is still no reaso. Why a trader will risk it all with huge lots size and not even put up stop loss this is basically just being Reckless
For me the most important thing in a trade is stop loss especially when you are trading a very volatile pair like XAUUSD  which could change direction in any time especially when a news is incoming
And after using multiple huge lots sizes and blowing the account they say forex is a scam or begging to compare It to gambling
Well this is just my opinion

Why you’re trying to explain here got me confused a bit but from my own understanding of what you’re trying to say is that, gambling shouldn’t be compared to forex as they’re two different things and should be treated differently. Gambling has not been something that is very okay to risk your money into as it requires little to no knowledge before you can start gambling whereas if you want to go into forex trading, you just need the knowledge and the right mindset to trading and you’ll be profitable. Gambling is more of gambling than forex is. When you have knowledge of something, you’ll always be on the winning end and your ratio of win to loss will be very high to show that you really know what you’re doing.

For a gambler, they just predict and place money, then hope for their prediction to go well. Forex is far more better to engage in than gambling because when you have the knowledge, you’ll definitely be profitable no matter how little you start with, you’ll grow with time and that’s type of riches are those that lasts longer than just hitting the jackpot at one trial without having to pass through some effort to make it happen. Gambling is a big risk game that happens base on luck while forex trading happens as a result of knowledge you’ve earned from it overtime.

[Lauris.x]

In my opinion a lot of traders today can be classified as gamblers this is because they they do not follow a certain path that I believe leads to succes yes yes I know we all have to take risk in other to make it big in the market but that is still no reaso. Why a trader will risk it all with huge lots size and not even put up stop loss this is basically just being Reckless
For me the most important thing in a trade is stop loss especially when you are trading a very volatile pair like XAUUSD  which could change direction in any time especially when a news is incoming
And after using multiple huge lots sizes and blowing the account they say forex is a scam or begging to compare It to gambling
Well this is just my opinion

It is true that some people view trading as a game, but for me, it’s a profession. I utilize all the tools at my disposal to ensure a minimum level of profitability. If you don’t want to be a player, it’s crucial to be patient and control your emotions

[FavourEhis]

I think one of the major difference is the probability of winning and acquisition of knowledge. A forex trader is one who has acquired the releant and necessary knowledge about the financial market and can determine market direction with an accuracy of about 70 - 80%.... but gambling is usually a 50-50 or even less than that with no proper understanding, just hoping you win

[Chilwell]

A forex trader is a person that is involved in buying and selling of currencies in foreign exchange market for the purpose of of marking profits. A gambler is a person who Involve himself in games of chance which he may win or lose and bet by putting money or valuable materials at stake. They also have similarities, both traders and gamblers are risks-takers because their money is at stake and they will not be able to know the outcome in advance whether they will make profits or lost/win or lose.

[Flavour]

In my opinion a lot of traders today can be classified as gamblers this is because they they do not follow a certain path that I believe leads to succes yes yes I know we all have to take risk in other to make it big in the market but that is still no reaso. Why a trader will risk it all with huge lots size and not even put up stop loss this is basically just being Reckless
For me the most important thing in a trade is stop loss especially when you are trading a very volatile pair like XAUUSD  which could change direction in any time especially when a news is incoming
And after using multiple huge lots sizes and blowing the account they say forex is a scam or begging to compare It to gambling
Well this is just my opinion

I totally agree with you. Nowadays all what we see are people flipping account and no proper risk or money management

[albon]

Consistent success in trading is attributed to skill, knowledge and experience. Analytical ability risk management strategies and ability to adapt to changing market conditions are most important. Again gambling is where participants bet money on an uncertain outcome in the hope of a favorable outcome. It is possible to get rich from gambling with our luck and gain profit with strategy and experience for trading. Both have some similarities inside as both involve risk taking and uncertainty. Again gambling or trading has the objective of making money from everything.

[electronicash]

because stoploss will exit you from your position when the market trend goes against your position then stoploss will backfire at you. the funny part is when the market hit your stoploss, it suddenly just goes with your position. so the feeling that the market is your enemy.

its a gamble to always hope the margin will not be hit. the only way to survive is to add more funds to your account. that will make your account safer unless the decline is really sharp.

[gunhell16]

I agree that some people can't manage risk properly, but do you have any data on how many traders don't use stop loss or any risk management strategy when they trade volatile forex pairs? Your perception might be biased because disciplined traders won't complain on social media or forums. Then again if there is any research supporting your conclusion I'd not be surprised either.

I don't think gambler is the right term to describe the behavior you described above. If they trade with no discipline, pick risky pairs and don't want to read the chart properly, complain and whine that the broker is cheating with no proof to back it up, etc, they're just terrible traders.

Until now, many in the community in this field are still not careful when entering an industry like forex, or gambling. And if there are those who do things rashly without thinking carefully, it is probably the people who have a rich quick mindset.

That's what always happens when the issue is like this, then the risk in forex is still too high until now, honestly. The same is true with gambling, nothing has changed.