horizontal dynamo top1

All banners are advertisements only. FIB does not endorse or vouch for any advertisers.

horizontal navi rotating-eisntein


Page 1 of 2 12 LastLast
Results 1 to 10 of 15

Thread: Day Trading, Investing and Gambling

  1. #1
    johnsmith00710
    Guest

    Day Trading, Investing and Gambling

    box - einstein 250x250
    Know that day trading isn't investing. Day trading is also not gambling. But the lines between trading, gambling and investing can be thin. You should understand where the difference is. You will be in a better position to follow your trading strategy. You will also make more money. You should avoid the trap of gambling. This way you will be in a better position to preserve your capital.

    What is the difference between investing and gambling? It is the risk and return tradeoff. The odds are generally in your favor in investing. However, it does not mean that you will make money. It only means that there is a good chance you will make money if you have done your research well. Some day traders end up gambling.

    Investors, traders and gambler have one thing in common that you need to understand. They put some of their money on risk. They hope of getting a return if they are right. You should take trading as a business. You should also know about the potential risk. You should also know about the sources of your potential return. This will make you better off in the long run.

    What is your reward? Your reward is that you get fair compensation for the risk you took. What is your risk? Risk is that you won't get the expected return. Risk is the probability of a loss. The riskier something is, the more chances of a loss.

    The reason there is a balance between risk and reward is that financial markets like the stock markets and the currency markets are reasonably efficient. This market efficiency means that prices of securities and currencies reflect all known information about the companies and the economy.

    Investing is putting your money at risk to make a return. Investing is the basis of modern day capitalism. It is the way that businesses get started, roads get built and the economy grows. Investing is always focused on the long term. In investing, you buy stocks of companies for three to five years at least that are good but have gone out of favor for the time being.

    What is trading? Trading is the act of buying and selling securities. Investors also trade but they trade only when they find a good opportunity. They expect that by investing they will give them a good profit in a few years time.

    Traders look to take advantage of short term price discrepancies in the markets. Trading keeps markets efficient by creating short term supply and demand that eliminates price discrepancies. Speculation is related to trading.

    A gambler puts the money on line in the hopes of getting a profitable payoff if a random event occurs. The probability of that random event occurring is usually very small. The odds are always against the gambler. They are in favor of the house. However, a gambler always believes that the odds can be beaten. He wants to win big.

    Always remember, trading is not gambling. Traders who do not give attention to their strategy and its performance can cross over into gambling soon. They view the blips on their computer screen as a game that they can win. Soon they are trading as if they are in a casino with odds as bad as a slot machine. They start making trades based on emotions without any regard to the risk and return.

  2. Under 1st Post -dynamo
  3. #2
    BitouT
    Guest

    We must have those gamblers anyways because there shouldn't be all winners. There are always winners and losers to balance money out.

  4. #3
    Elite Member


    Join Date
    Apr 2013
    Location
    http://www.tickmill.com/
    Reputation
    Array
    Posts
    734
    Day trading involves quick reactions to the markets, not a long-term consideration of all the factors that can drive an investment. It works with odds in your favor, or at least that are even, rather than with odds that are against you. Investing is the process of putting money at risk in order to get a return. It’s the way that businesses get started, roads get built, and explorations get financed.A gambler puts up money in the hopes of a payoff if a random event occurs. The odds are always against the gambler and in favor of the house, but people like to gamble because they like to hope that, if they hit it lucky, their return will be as large as their loss is likely. I suggest one should prefer EA before gambling as it is risky.

    Let's Try [Only registered and activated users can see links. ] : Choose a trading system and trust your funds to carefully picked strategy

  5. #4
    Newbie


    Join Date
    May 2014
    Reputation
    Array
    Posts
    11
    do not gamble

  6. #5
    Newbie


    Join Date
    Dec 2011
    Reputation
    Array
    Posts
    12
    I agree do not gamble

  7. #6
    Elite Member


    Join Date
    Apr 2013
    Location
    http://www.tickmill.com/
    Reputation
    Array
    Posts
    734
    I think forex is not one of the gambling business, because in forex we not only speculative but we are required to be able to analyze the market and the market movement chart, traders who rely only speculative will never succeed in this business. We need more experience and knowledge in forex to get a better result. So, it's not game as well.

  8. #7
    Newbie


    Join Date
    Aug 2014
    Reputation
    Array
    Posts
    22
    Thanks for that

  9. #8
    Junior Member


    Join Date
    Aug 2014
    Reputation
    Array
    Posts
    104
    Day trading is the most effective and profitable trading strategy in Forex. But obviously it is risky too. It is really bad that traders use Day trading strategy to do Gambling, but in the end they cannot make profits, because Forex is not about doing gambling. Therefore, with OctaFX broker I am trading so safely following my money management. Because this broker does not have any restrictions and let us trade with our own strategies.

  10. #9
    Rookie Member


    Join Date
    Aug 2014
    Location
    Bangladesh
    Reputation
    Array
    Posts
    53
    Very useful post for the new Forex trader. I am also a day trader. Therefore I like to close my all trade in a day. I always follow the money management, and use the take profit and the stop loss.

  11. #10
    Banned



    Join Date
    Oct 2014
    Reputation
    Array
    Posts
    127
    dynamo - First and lasp post every thread AXITrader aff
    I am a day trader. That means, I always want to close my trade in a day. I do not like to close my trade very shortly but I can’t wait for my tp for long time. In addition, I get 4% interest from ‘GCI’ trading broker that I can withdraw without any restriction. This bonus helps me very much to increase my trading equity.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
footer - open-an-account