In fact, the Forex market encounters more gamblers than professionals. Though many people don’t want to be a gambler, they also see it as gambling. And they approach Forex with the attitude of a gambler.
Several traders lose a lot of money to the Forex market because of a lack of knowledge or because they re not able to control their emotions.
There are many signs that gamblers exhibit from which you can identify them, but we look at the main traits for now.
Traits of a Forex gambler
- A forex gambler never follows a strategy
- A gambler won’t have any trading plan.
- He/she doesn’t know the value of his own trading journal.
- A gambler won’t follow any risk management.
- A gambler focuses more on profits.
- Instead of a detailed study, a gambler relies on gut feelings.
- A gambler wants to be in the market always.
- And they look for every opportunity to make money.
- A gambler goes for quick trades and does irrelevant tradings.
Traits of a professional trader
- A professional trader will have a forex strategy to follow.
- He/she would have complete knowledge of his strategy.
- And the professionals will develop it through learning and doing demo trading.
- The professional trader will have a trading plan
- The trader will be happy to have his own trading journal.
- And he /she will keep the records for the trades and transactions.
- For every trade, the professional trader applies risk management.
- The professional trader not only considers the ends.
- He/she also concentrates on the process of trading.
- The trader will treat it as a business, not as a game.
- They enter the trade only when there is the right opportunity.
- The professionals maintain a level head and are not emotional people.
Forex Trading Vs. Gambling
- Forex trading requires learning, practice, and experience.
- But gambling is based only on gut feeling.
- Forex trading can give you a regular income.
- But gambling can’t assure you a regular income.
- Forex is not addictive in nature.
- Whereas gambling is highly addictive.
- And it would turn you into a bankrupt.
- Gambling is played for fun also.
- But forex is a serious business, which involves investment and returns.
- In forex trading, though losses are inevitable, the trader will gain more money.
- But in gambling, the gambler will lose more money than he earns.
- As the saying goes, the house will always win in gambling.
- No such rigging of the process is possible in forex trading.
To sum up, a Forex gambler risks more than he/she can afford. They would receive more than 5% of their money. But professional traders won’t do anything risky. When they go for risky trades, they do it with the right tools just like Forex calculators.
Know the difference and groom the trader in you.
Vincent Nyagaka is a Professional Trader, Analyst &. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Checkout Vincent’s Professional Trading Course here.