Monday, November 5, 2012

Difference Trading vs Gambling

Many forex traders are likely act like gambling. This is mostly because of the unpredictability of the forex market. As in gambling, outcome of any trading action in stock or currency markets is likely uncertain. If the players always knew the outcome then everybody could become rich overnight. They act and think like gamblers, they have behaviour using greed, fear and hope.

What trully separate good traders from gamblers? The fact is most of forex traders gamblers do trade by emotion. But there are important differences which make day trading in forex currencies unlike gambling. It is a good trading plan, tools and trading rules.

There are several tools available for a day trader which are not available in gambling. In markets there are a large number of traders. None of them can influence the market. The market is driven by news. In gambling it is allways a matter of chance.