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Day Trading, Investing And Gambling


Guest johnsmith00710

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Guest johnsmith00710

 

Know that day trading isn't investing. Day trading is also not gambling. But the lines between trading, gambling and investing can be thin. You should understand where the difference is. You will be in a better position to follow your trading strategy. You will also make more money. You should avoid the trap of gambling. This way you will be in a better position to preserve your capital.

What is the difference between investing and gambling? It is the risk and return tradeoff. The odds are generally in your favor in investing. However, it does not mean that you will make money. It only means that there is a good chance you will make money if you have done your research well. Some day traders end up gambling.

Investors, traders and gambler have one thing in common that you need to understand. They put some of their money on risk. They hope of getting a return if they are right. You should take trading as a business. You should also know about the potential risk. You should also know about the sources of your potential return. This will make you better off in the long run.

What is your reward? Your reward is that you get fair compensation for the risk you took. What is your risk? Risk is that you won't get the expected return. Risk is the probability of a loss. The riskier something is, the more chances of a loss.

The reason there is a balance between risk and reward is that financial markets like the stock markets and the currency markets are reasonably efficient. This market efficiency means that prices of securities and currencies reflect all known information about the companies and the economy.

Investing is putting your money at risk to make a return. Investing is the basis of modern day capitalism. It is the way that businesses get started, roads get built and the economy grows. Investing is always focused on the long term. In investing, you buy stocks of companies for three to five years at least that are good but have gone out of favor for the time being.

What is trading? Trading is the act of buying and selling securities. Investors also trade but they trade only when they find a good opportunity. They expect that by investing they will give them a good profit in a few years time.

Traders look to take advantage of short term price discrepancies in the markets. Trading keeps markets efficient by creating short term supply and demand that eliminates price discrepancies. Speculation is related to trading.

A gambler puts the money on line in the hopes of getting a profitable payoff if a random event occurs. The probability of that random event occurring is usually very small. The odds are always against the gambler. They are in favor of the house. However, a gambler always believes that the odds can be beaten. He wants to win big.

Always remember, trading is not gambling. Traders who do not give attention to their strategy and its performance can cross over into gambling soon. They view the blips on their computer screen as a game that they can win. Soon they are trading as if they are in a casino with odds as bad as a slot machine. They start making trades based on emotions without any regard to the risk and return.

 

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Guest gaban

Of course, day trading is not gambling. We can't rely on luck only to get profit in forex, we need to make analysis and we have to have money management to survive in forex without spend a lot of money.

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  • 4 years later...

All successful investors and traders in the Forex and CFD markets are familiar with the name of FXB Trading. It is basically an online brokerage service that offers effective kinds of trading basics. Besides offering such essentials, it also makes it easy for traders to become successful in the trading market as it supplies them with several strategic and speculative tools that are not easy to find anywhere else on the net.

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strong motivation will also help traders in the learning process as well as evaluation of their trading ability to get better. and not a few traders who decide to stop from forex trading in through the learning process as well as evaluation of trading ability, because of lack of motivation in the desire to improve forex trading in order to get maximum results

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Every fruitful speculator and traders in the Forex markets know about the name of TenkoFX broker. It is fundamentally an online brokerage benefit that offers compelling sorts of trading essentials. Other than offering such fundamentals, it likewise makes it simple for traders to wind up noticeably effective in the trading market as it supplies them with a few key and theoretical instruments that are difficult to discover anyplace else on the net. I am making the most of my trading with them.

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All traders started trading upgrade there is a demo account, and it's not too long and there will be better again start trading on a real account with a micro account in the FXB Trading as a business boost trading experience into a broader
 
 
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  • 4 weeks later...

Three confusing terms for the new players are trading, investing and gambling in the Forex market. Now what are the differences among them? A trader is the one who holds account with broker for a longer term period in order to achieve a more stable targeted amount of profit. An investor is the one who holds account with the broker for a relatively short term period in order to achieve high profit. And gambling is the uncertain plays of speculators. I prefer trading than the other two and I have fixed trading account with a regulated broker, AAFX and it is providing me various trading facilities.

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On 11/13/2017 at 11:16 AM, ViproMarket said:

because it is to be able to survive in forex, traders must to maximize more in the management, this is because to be able to survive and generate large profits, traders must be able to maximize more in running trading activities.

To maximize trading capability it is one of the things that we must run, because by reminding the risk is very large. And I am also to always learn to take advantage of one demo account and also contest demo instaforex for where the desire succeeds in gaining the benefits

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2 hours ago, uncle gober said:

that's right, I totally agree with it. traders should be able to continue to be better at improving existing trading skills, it is needed so that traders can be more leverage in making profits and minimize the risks that exist.

a successful trader is a trader who wants to work hard and continue to improve good trading skills that will make us successful. So try for that, we are always in a good learning phase where we can take advantage of one demo account or also a demo contest instaforex in the stages with us we can understand the management of better trading

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18 hours ago, gaban said:

a successful trader is a trader who wants to work hard and continue to improve good trading skills that will make us successful. So try for that, we are always in a good learning phase where we can take advantage of one demo account or also a demo contest instaforex in the stages with us we can understand the management of better trading

success in forex trading that will be easy once we get, if we often understand and also discipline in how it works, take advantage of demo account to maximize our ability to understand and also master the way of work, and the most important is able to run trading with well, in order to be easy in reaching profits at FXB Trading broker

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  • 2 weeks later...
On 11/20/2017 at 8:46 AM, uncle gober said:

applying discipline is one of the most important factors that a trader should be able to have, so traders can get even better at implementing the existing discipline while managing funds and risks that exist in the trading system we have in real accounts.

Discipline is the way we must apply, with the discipline of course we can be more focused and can trade this profitable. Forex is a big risk business, so always to be careful and also with the stages of learning in us to be able to trade with more profitable

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discipline is of the utmost importance and With FXB Trading, traders will surely find the best among the trading platforms that traders will encounter across the trading market. It highlights popular platforms like MetaTrader 5. This website offers updated daily news and quality trade assistance for traders. The desktop and mobile platforms can be easily downloaded to a laptop for future usage in the future

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1 hour ago, uncle gober said:

it is better for traders to have to apply discipline since they are still using a demo account, this is done so that traders will get used to running trading activities in real accounts with real funds and risks as well.

Discipline is indeed an important role as well, because with discipline also must be more focused, with more can manage the trading well, and will be far from the greed factor, certainly in the forex business is our way to keep trying in learning so that we better understand will how to run this forex trading with profitable

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