A guide by Professionals on how to ensure that you trade and not gamble
What is Forex Trading and what it is not as discussed in Part 1
Forex Trading is extremely rewarding. You have to have the knowledge and skills to earn money with Forex Trading. With proper training it is a business venture like any other. Without it, it is a gambling machine.
Difference between gambling and Forex Trading
In Forex Trading and gambling we can have profits or losses. In gambling the odds of making money are always fixed and extremely low. Gambling machines are rigged to make people loose. Look at the lottery – millions play and only a few people win.
In Forex Trading, we go into a level playing field. There is no cap on the number of winners. If you do the things correctly you are sure to win. There is no one person or organization that is controlling the stakes. You need to understand the business and address the market forces.
Professionals in Forex Trading win and prevail. They increase the chances to win and reduce the chances to lose.Forex Trading requires expert risk and money management. Luck has little to do with it.
Invest in knowledge
It is clear that we have to be skilled to trade in Forex. Learning about the software that you use to trade is only the beginning. Most professionals agree that beginners get too excited and jump into early with little knowledge. Forex Trading is not a game. Having good intuitions is an asset but you cannot rely on intuitions alone to conduct business. You can use intuitions to have a competitive edge.
There are many sources to collect information. All of them are important. Each one has its own advantage. People invest years of life in formal education in order to earn a decent living. Remember that Forex Trading will give you immediate benefits. So go ahead and invest time and some money in the following resources:
- Read books
- Talk to pros and experts
- Exchange experiences with other beginners to see where they are failing or succeeding
- Visit seminars, presentations and trainings
- Find at least one mentor to discuss
Understand most of the concepts involved in Forex Trading.
Build a solid foundation
If we have a solid foundation, we will make mature and informed decisions. Does that guarantee success? No. But it comes as close to a guarantee as you can get. All professionals agree that they lose money in Forex Trading sometime or other. The ultimate aim is to trade with knowledge, strategy and system so that you have consistent rewards even if you loose on some trades.
Summary
In gambling the odds of winning are low and they do not change. In cases the odds are rigged to ensure that you lose. There is normally one winner in gambling. In business everyone can be a winner. There is no one person or organization which controls the odds. All you need to succeed in business is to have the required skills, knowledge and strategy.
