Many people want to make forex trading easy, and that seems a reasonable objective. After all, you just need to know how to install a trading platform, fund an account and then just push the buy button or the sell button to trade forex. Right?
Well, the first thing any forex newcomer needs to learn about forex trading is that a big difference exists between trading and gambling. The following sections will cover some of the distinguishing elements of each type of forex trading and how to optimize your own trading accordingly.
Gambling Versus Trading
Most casual gamblers at casinos do not seem to have much of a plan or a system when gambling. As a result, they usually do not win consistently and often just end up paying to play.
This same observation is also generally true of those unsophisticated forex traders who jump into the market and make forex transactions without having first developed and tested a well-founded forex trading plan.
In essence, they are also just casual gamblers betting on the direction of forex movements. Often, they also end up as losers who pay for the entertainment of playing in the market.
Viewing Trading Forex as a Business
On the other hand, those forex traders who are serious about the endeavor of trading generally view their trading activities as a business.
As a result, they will generally have developed and tested a set of sound analytical techniques and methods which objectify their trading system and remove the element of gambling and emotional involvement from their trading.
Naturally, doing so does not mean that having a trading plan removes the element of risk from forex trading, nor does it make forex trading easy. However, having a trading plan does tend to make forex trading results more predictable.
TheFXperts’ blog posts are provided strictly for educational purposes and represent the opinions of the authors. No recommendation or endorsement for specific financial trading or investment purposes is offered. Subscribers are advised to seek financial, business and legal guidance from licensed professionals.