Forex traders seem to have a love/hate relationship with gambling and whether Forex really falls into this category. Some traders feel that it’s not really a gamble whereas others believe that the same element of risk is involved. We’ve delved into both worlds and found some similarities, as well as some differences.
Cashing out at the right time
For as long as there have been stocks and fluctuating currencies, there have been people ready to profit from them. Buying and selling at the right time have become the focus of blogs, movies and many people’s lives. Similarly, big casino gamblers enjoy the same level of prestige as successful traders if they cash out at the right time.
As traders, we all know someone that’s lost it all by being too greedy and waiting for currency values to rise even further. This echoes many of the gambling stories that we here too, with some Vegas whale’s going double or nothing and losing millions. Knowing when to cash out is something that both traders and successful gamblers have in common, though it’s a hard skill to master.
Alternate payment methods and currencies
We also have the same fascination with currencies like Bitcoin, as we all like an additional gamble on another currency. Cryptocurrencies are making their way into many casinos for the same reasons they’re popular with traders; convenience, anonymity and security. We also love the same secure payment methods, you’ll find lots of Forex and online casino PayPal options out there.
Extensive research for profit
Savvy traders and savvy casino players aren’t all that different, they both do their research and play it safe when needed. Strategies and signals are both ways that these two groups help to boost their earning potential. Think of just how much time you’ve spent researching trends, it’s probably on par with what many top gamblers spend on their game. Movies like Rain Man show just how much thought goes into every move that a gambler makes.
Signals are a bit different however, as these are outside and changeable influences, instead of a strategy that will always ring true. In both cases, you can choose to accept the likely or bet big on the off chance that something less likely can occur. The less likely path will always offer a bigger return if it pays off, regardless of the form of investment or gambling you’re partaking in.
The risks involved
Any Forex trader in their right mind will know that there is a risk involved, no matter how sure the deal seems to be. Gambling presents a risk too, though some feel that this is a larger risk than what Forex trading offers. Either way, those betting on these outlets know that they could lose their cash.
Regulation and taxation
The only reason that Forex and casino gaming are allowed to exist is that they generate income through taxation and are thoroughly regulated. Laws concerning gambling are much stricter than Forex, as it’s a more established and investigated industry. Forex is a much more lenient industry and the same rules don’t apply within this arena.
Whether you err on the side of believing Forex is gambling or not, there are many similarities between the two industries. Investing can be a gamble, as there’s no such thing as a sure thing in this regard.