If I would trade with a leverag around 1:400 I think forex trading is more gambling than trading.
Besides the bigger abrupt price movements in the market the risk seems statistically calculable.
I like to combine the probability theories with risk- & money-management by putting out some profits regularly out of the accounts.
Leverage around 1:100 seems okay for me.
FX trading like all speculative endeavor is a function of risk/reward. When you use the word "gamble" it has a touch of more risk than reward, like the roulette wheel where your odds are below 50% to get 1/1 payout. I do believe there is something called an edge in FX, where you nudge your odds above 50% for an equal pay, but you have to stay sharp to collect...
are you a Nigerian? if yes then you will probably notice that the country has high rate of inter-trading habit, lets take the market place for example some one buys a commodity/goods and wait until it increased in value and sell it back or still buy some thing(s) and sell back at a higher price then whats the differance between them(local traders) and us(forex trader) if thats the case then we are all GAMBLER then.
and secondly it all base IN YOUR MIND if you think your gambling it becomes embedded in your mind that your a GAMBLER.
hope you understand and take a decision
So, there must be some reasons why they can do that.
Yes. It's real gambling if someone has no knowledge about the rule. It's not gambling if someone doing forex trade like real business in real world.
I learned a sentence yesterday. Plan your trade, trade your plan. This make sense for me, and I will keep this as my motto for my future trade.
If trading with high risk or no knowledge >>> Forex is gambling.
Trading with wise risk and knowledge >>> Forex is safe.
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