If you have been looking into forex trading, (foreign exchange market trading), then no doubt you have read opinions that trading forex is very similar to gambling.
People who have this opinion claim that trading forex and gambling are very similar because of the low amount of profit that both gamblers and forex traders make. And this is true – if you are talking about inexperienced gamblers and traders, their success is similar. But it is also true in a different, positive way, such as when you compare gamblers and investors who approach gambling and forex trading as if they were a business.
For example, a seasoned, professional gambler does not just gamble on the weekend or for fun. He or she approaches gambling as if it is a job, and has an underlying strategy that he or she uses to win the most amount of money possible gambling.
Some black jack players, for example, are highly skilled at counting cards, and because of this can win consistently. Of course, counting cards is frowned upon in casinos, and is considered by most to be “cheating”. We’re not advocating the use of counting cards we are just using it as an example of how a gambler might use an underlying strategy to approach gambling as a job.
Similarly, a well seasoned, professional trader does not just trade for the fun of it. He or she approaches trading forex as an actual job, with a well developed strategy and trading plan. He or she uses this plan consistently, in order to have consistent success at trading forex.
Of course, just like in gambling, there is always some risk involved with trading forex. The idea of approaching forex market like a business or a job is to remove the personal risks – such as emotional decision making. By doing this a forex trader who treats forex trading like a business will have a better performance overall.
So to answer the original question, no, there is not much of a difference between forex trading and gambling. Both have inherent risks attached to them, and both offer financial success if they are approached as businesses or jobs instead of a casual activity or hobby.
Of course, forex trading and gambling have a lot of differences too! But on their most basic level, the principles involved in having consistent success at forex trading can work for having consistent success at gambling too – and vice versa.