Casino Vs Forex
The number of Youths joining the Betting wagon has skyrocketed in the recent past. This may be attributed to the crushing unemployment levels and the thirst for quick cash. While I am a firm beleiver in exploting all money making schemes, I am abit hesitant to join the band wagon. True, I ave ‘invested’ in sports afew times and lost more than I won but that is a story for another day. Question is, Is there another way for millennial out there to invest their hard earned money apart from Betting.
Insurance – Who Trades it Better? By Boris Schlossberg. Right after last week’s column, I got an interesting email from a long time reader and in order to fully appreciate its value I am going to something I never do. I am going to quote his email in full.
Forex Trading (FX) is one such alternative investiment opportunityies that not only promises high returns, but also Works. Let us dispense with the definations first. A standard Dictionary defines Forex as a form of Investiment and sports Betting as a form of Gambling. The same dictionary defines Investing as to puting (money) to use, by purchase or expenditure, in something offering profitable returns, especially interest or income. The same dictionary defines 'gamble'as follows: To play at any game of chance for stakes. To stake or risk money, or anything of value, on the outcome of something involving chance; bet; wager.
- Welcome my friend to this video on spot forex vs futures currencies, spot forex trading, spot forex markets and a comparison between the two, some pluses and minuses; each have their own advantages and disadvantages. We’ll walk through the difference of spot forex vs futures today so you can make a decision on what’s best for you.
- Insurance – Who Trades it Better? By Boris Schlossberg. Right after last week’s column, I got an interesting email from a long time reader and in order to fully appreciate its value I am going to something I never do. I am going to quote his email in full.
Both forex trading and sports betting could be really lucrative, and they both have their fair shares of upsides and downsides. However, they remain parallel ventures that are distinctly different from each other. With that in mind, let’s now look at the differences between forex trading and sports betting:
a) As a forex trader, how much profit you would make hinges largely on your skills, abilities, and understanding of how everything works in the foreign exchange market. It takes time to master all these, but you will make more profit as you learn more.
In sports betting however, your profits are not dependent on your experience or skills. In fact, there are really no skills to master. In reality, your profit depends on factors that you cannot control, such as the morale and performance of the teams you have tipped to win a match.
b) In forex trading, you can opt out of the market when market factors seem unfavorable. This is a good tactic to prevent huge losses. And you can as well enter the market again once market indicators show positive signals. However in sports betting, you cannot opt out of a bet after a match has started (even though you can predict the outcome of a match from the starting tempo sometimes).
So, even if you are seeing signs that you will lose your money, you can no longer opt out of a bet once the match has started or once it has reached half time (depending on the rules laid down by your betting agency).
c) Forex trading is not time bound. You can enter and exit the market at irregular intervals as you wish. Some forex traders buy and sell within few minutes, while others may hold on to their purchase for as long as 24 hours or more.
In retrospect, the time frame for a sports bet deal is just the duration of a match (90 minutes in the case of a soccer match). So you have to wait patiently until after the match to know if you if you will end up with a profit or a loss.
d) Forex trading brings results that are proportionate with your knowledge of market analysis. Highly experienced forex traders hardly lose their funds. And when they do, it’s always very minimal.
Casino Vs Forex Stock
But in sports betting, shocks abound. That you have been betting for decades doesn’t guarantee that you would get it right most of the time. In fact, a newbie can place a bet and win a huge profit, whereas, a “pro” can place a bet and lose badly. (In forex trading, hardly can a newbie make more than a veteran does).
e) Forex trading requires more technical knowledge than sports betting. A forex trader must have a deep knowledge and understanding of market analysis, market indicators, currency rise and fall trends, price fluctuations, signals and what they mean as well as the mathematical analysis required to make decisions that will most likely bring profit.
While Sports betting only require you to know a bit of recent history, the strength, style of play, and the current form of the teams involved in a match. All these are not technical details, and you can get them within minutes.
f) Forex trading involves buying and selling with spreads, margins, and leverages. (Leveraging is when you forex broker gives you additional funds to trade with, which is usually a fixed multiple of your own capital). While in sports betting, what you put-in is what brings your results. No spreads, no leverage.
g) As a forex trader, your success in forex trading depends largely on your personal skills and knowledge, and your active participation is required. Of course, you need to be actively watching the market and making decisions at the right time while Sports betting doesn’t require your active participation. You can place you bet and wait for the results of the match. So, you can win or lose a bet whether or not you watched the match.
***** To learn More about Forex Trading, Join us for a Free Trading Workshop on 21st April at Enkare Hotel from 6.00PM to 8.30 Pm. Follow this link to reserve your Seat. RSVP Only
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Is Forex Trading the same as Gambling?
I have been asked many times 'Is Forex trading the same as gambling?'.
My answers:
Yes, it is gambling when one treats the Forex market like a huge Jackpot machine or Roulette table where the hope of winning is dependent on nothing else but pure luck.
The problem with casino gambling is that the odds are stacked heavily against the gamblers.
In Forex trading, the trader needs only to overcome the odds of a few PIPs spreads payable to the broker before he/she can attempt to make a profit.
Trading 'blindly' in the Forex market with no plan or strategy will cause the Forex gambler to lose money just like any game of chance.
The consequence is worsen when the Forex gambler does not apply stop losses in his trading.
No, it is NOT gambling when one treats the Forex market like any other business or profession where opportunities can be seized and risks can be mitigated.
Casino Vs Forex News
The difference between the Casino and the Forex market is that, most are games of chances with the former versus a contest of strategy for the later.
Unlike a game of chance, the Forex trader can rely on price patterns and analysis to decide on the opening and closing a position with a probability of winning in his favor.
One of the main issues with gambling, is that it is addictive.
Gamblers step into casinos with nothing but their hope to make money. When they lose money, the desire to recover losses will lead them to gamble more, and often more aggressively.
A Forex trader can easily become a Forex gambler when he lets his emotions dictate his actions to trade impatiently and illogically.
Unlike gambling, trading is much more than just betting on an outcome.
A good trader has and adheres to a trading plan that gives him the statistical edge of winning.
He monitors the trades in progress and trail his stops to maximize his profits and minimize his losses.
Automating his profitable trading plan will give him the added advantages of freeing him the time to trade around the clock and without the emotional ups and downs that can cause many good trades to turn bad and bad ones to become worse.
The fact is:
The buying and selling of currencies is no difference from the trading of goods which we try to buy at a lower price and sell them off at a higher price to make a profit.
Why Forex?
No other businesses and professions can beat the $5 trillion a day Forex market in size and the advantages and benefits of Forex trading.
Casino Vs Forex Platform
The entry barrier is low. A trader doesn't need a University degree and years in practice to trade.
All he needs is an internet connection and a couple of hundred dollars to trade for real, 24/5.5 days a week.
The daily swings of a hundred PIPs or more for the major currency pairs offer the astute traders ample and unmatchable opportunities to ride the trends or to take the profits.
The earning potential is unlimited and the freedom to work for yourself is priceless for those who care to master the skills of trading.
A good trader is like a successful surgeon or business owner.
The pre-requisite is for them to master their skills before they can start to earn a good living for themselves.
The Holy Grail in trading is no different from good practices adopted and perfected by these professionals and businessmen.
They adhere to proven principles and adjust their approaches to changing market conditions to stay ahead of their competitions.
Please click on High Probability Trade Setups and Triggers + Trading the EURUSD to see how price patterns can be used to trade profitably.
My Observations:
It's always better to trade with your own system than to rely on others' because the market is dynamic and requires you to adapt to stay profitable.
Trading with an EA based on profitable trading strategies is a bonus as it will free the trader from having to monitor and react to changing prices.
As an IB, I know of some traders who are making profit consistently in their trading, manually or otherwise.
Based on my analysis of the Traded Volumes, Funded Amounts and Current Balances, many of the profitable traders opened and held on to their trades before closing them within the following few days.
In my opinion, the trader who has the patience to wait for the optimal price to enter the trade, take the first profit with a partial close and let the remaining lots ride the trend will survive and become profitable under most market conditions.
This approach allows the trader to minimize losses from erratic price movements and still capture profits whenever the price continues to move in the right direction.
Why Forex?