There are many people who consider trading in the forex market similar to gambling. This may be true for novices but when you consider people who use trading as a business, the story is completely different. Forex demands plenty of skills and knowledge and requires many years before you can start making a living through this. In addition, this kind of trading is not a game that is played just for enjoyment.
The forex market trades average between two trillion and five trillion dollars on each trading day. Excepting a few other industries, such daily turnover numbers are not seen in any other business. Even when one considers all the casinos around the world, the daily turnover would not be more than a few billion dollars. This is one of the primary reasons that make forex trading different from gambling.
Institutionalization of Forex Markets
The forex trading market operates 24 hours per day and five days a week.
- Some of the largest financial institutions from over the world participate in this market
- Even when individual traders do not deal with these institutions, the market is supported by them, giving it legitimacy
- The forex market is regulated by different authorities in the world to retain semblance. This kind of regulatory control and legitimacy is not available in the gambling arena, which makes these two entirely different
Forex Market Strategies
Most people who decide to trade in the forex market spend lots of time in understanding it and the various strategies. However, some people forego this research and do not develop strategies that match their personal objectives, causing them to incur significant losses.
- Traders implement their strategies on a reliable trading platform
- Adopt measures like stop losses and take profits to prevent emotions from taking control
- All such strategies are non-existence in gambling, which is driven largely by individual emotions
Using Innovative Tools
Although trading in forex markets involves certain extent of risk, traders are not completely unaware while opening their positions. Tools, such as technical and fundamental analysis are used to analyse the trends that help them make decisions, hence leaving very little to traders’ luck. Such tools are unheard of in gambling which is highly dependent on the players’ luck on a particular day. You can always derive more information on trading when you visit relevant facebook and twitter pages.