Trading is not Gambling
The forex market is, by far, the closest thing people have to a perfectly competitive market. The Ultimate Forex Course teaches you everything you need to know on how to trade Forex. The Forex market has, virtually, no barriers of entry or exit, a homogenous product (the only thing being traded are currencies), virtually no transaction cost, a large number of buyers and sellers, profit maximization by all sellers, and everyone is a price taker -that means that no one can set a price, everyone is bound by the prices set by supply and demand-. Therefore, it is easy to think that in such a dynamic market things are decided by luck, which turns traders into gamblers looking for their hot streak. However, that cannot be farther from the truth. A solid forex strategy it is needed to succeed in this forex trading world. The Ultimate Forex Trading Course can arm you with all the skills required to trade the lucrative Forex market.
Here is a simple scenario that helps visualizing why a forex gambler differs from a successful forex trader. Let’s say 2 traders start with a £500 account, and we will refer to them as Trader 1 and Trader 2. Trader 1 starts to trade based on trial and error method. He puts emphasis on his emotional highs and lows with little to no regard of any proper risk management. This trader does everything mostly by feel. That means that this trader will engage in several luck-governed strategies, which will cause large losses.
Soon enough, Trader 1 will burn all his funds and will be forced to spend another £500 if he wants to keep trading. Trader 2 will start also by a trial and error method, but making sure to hedge any risk he takes. He will stay true to a solid forex strategy, and avoid falling for the trap of setting unrealistic or unattainable short-term targets. Trader 2 will see his profits increase marginally over time, but he will never suffer from a loss that he cannot recover or at least mitigate by a large number of solid trades.
This scenario, while it seems far-fetched, is actually quite common. Trader 1 engaged in something that is called, blind repetition. He is doomed to follow that pattern of error until he is broke. He will do so with the hopes that one of this successes will compensate for his multiple loses. It is a common error that everyone who just got into forex trading commits.
However, remember what Einstein once said: “Doing the same thing over and over again and expecting different results is the definition of insanity.” So it is paramount to be aware of this pattern in order to fix it before it's too late. Because that is what gamblers do, they chase the profit and get addicted with the thrills of the victory. They listen to their emotions instead or their rational thoughts, and do not have an effective strategy.
Forex Trading Course
Forex trading is not gambling. In order to be successful here it is of utmost importance to treat every trade with a high degree of frivolity and professionalism, and to get yourself the appropriate education. The Ultimate Forex Course teaches you everything you need to know on how you can earn a tax free income trading Forex. One must only trade with when you have a solid forex strategy. Assess your risk on every trade and make sure to always hedge against risky trades. Use a forex journal and work hard on your craft instead of depending on luck to guide you. Being a forex trader is being in command of your own decisions. So make sure to strive to become a professional trader instead of gambling addict.