Is the forex is gambling this is the answer

Is Forex trading gambling?

He patiently explains to the reporter how we diversifies his bets, optimizes his player picks and constantly re-evaluates his line ups. In other words he is doing everything that a successful prop trader would do. This is wrong on so many levels because it is the same ill informed insult casually tossed at anyone who tries to speculate in the financial markets.

Gambling is a fixed odds system in which the participant is guaranteed to lose against the house.

So in blackjack, craps, baccarat, roulette the odds are always at least That means that no matter how much money you have if you play long enough you will lose it ALL. There is absolutely no doubt about that and the critical point to understand is that all casino games are FIXED odds structures which is why you should never play them.

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Now the moment you change those rules, the moment for example, you start counting cards at blackjack, you no longer have a fixed odds system and you actually have a dynamic market in which skill can win.

Everything else in life is just a market with open ended -- and more importantly -- dynamically changing odds of success. Is walking against a red light in front of my house on Broadway gambling?

For that matter is walking against a green light gambling too? Well at 4 AM in the morning when the road is barren the answer is pretty much no. My point is that it its incredibly stupid to refer all betting activities as gambling without understanding the underlying structure of the game. It is the assumption of risk, but it is not a guarantee that you will lose like in Vegas.

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To put it bluntly if you suck and are losing all your money you are probably gambling in the worst sense of the word -- i. If on the other hand you seeing steady and consistent success -- you may be actually skillful.

The key to understanding if you are lucky or good rests on the number of tries. This actually makes eminent sense when you bring it back to sports. Anyone can sink a 10 foot putt, but do it times and I guarantee you that Jordan Spieth and Jason Day will beat you every time.

The general rule in life that separates luck and skill is the ability to replicate success over a large sample size. Although statisticians will tell you that samples is usually good enough, when it comes to trading I think you need at least trades to have some degree of confidence that what you are doing is more than luck.

My latest day trading system for example has done trades made 8. All pretty good stats, but hardly enough to make me want to put it on auto pilot and retire to Florida. So am I gambling when I am trading?

I am WORKING on my ideas every single day -- just like everybody else. Learn the Trading Skills That Will Last a Lifetime.

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