Forex is one of the most traded assets in financial trading. Forex Traders hedge money against different currencies and even cryptocurrencies to profit from the variations in their value on the market. Forex trading is often compared to online casino games. There are also numerous references on the internet about how few gamblers become some of the best forex traders.
When it comes to forex trading, the skill-set required to be a profitable trader is similar to that of the skills possessed by a successful gambler. There are many similarities between placing bets on an online casino and leveraging the investments in foreign currency.
However, compared to online casino games, card and roulette games, the returns are much higher in forex trading. Also, the odds of winning at an online casino is much lower by design and it will continue to be the same. Forex trading, on the other hand has a lot of constantly changing variables which can be predicted by analyzing the latest news updates and other geopolitical, economic and military factors. By considering these factors and behavior pattern of other traders, the movement of currency value can be forecasted. Trades executed accordingly will ensure a greater chance of success, making trade more profitable.
People gamble while playing these online casino games, whereas forex traders speculate instead of gambling away their investment. However, not everyone is so adept in trading, those who are not, end up gambling with the trade instead of speculating.
And not to say the least, forex trading has to be more like a business and not a game or a pastime. It is preferable to keep a clean, updated record of all the transactions and trades executed over time so that the approach can be revaluated on a regular basis. This will help traders devise new strategies which they can implement over time. Taking a gambling approach to forex trading may lead to huge losses and those who do that should better stay away from it.
Publications like Forex Minute helps forex traders keep themselves updated and make informed decisions on their trading. The daily market analysis also come in handy during the trades. There are many differences between online casino games and forex trading platforms, yet they share few similarities. It is a good practice to know the difference and play accordingly.