Foreign exchange traders are gamblers. Dare you admit it?

Traders usually think that trading has nothing to do with gambling. They will feel offended when you tell them that trading is gambling. However, if we take a closer look and analyze the most real situation, we will find that trading is actually gambling. Although the word "gambling" often has a derogatory meaning, it doesn't sound good. But when you're a trader, it's no surprise that people call you a gambler, because you are. Not all financial players like to play "Texas Poker". Of course, this reason is a little far fetched.
First, let's talk about the official interpretation of the word "gambling", and then compare whether "trading" has something in common.
Gambling:
(1) Risk uncertain results
Transaction: same. The result of any transaction is uncertain. You don't know whether the transaction to be carried out is profit or loss.
(2) Play games with a certain profit probability
Transaction: same. Probability means that the result of the transaction is not fixed, it appears randomly, and you can't control the result. In trading, you can't control how the trade will change or predict the results. And you put money into trading to take risks, which is another feature of gambling.
(3) Have a fluke mentality and take risks in anticipation of profits
Transaction: same. Entering a transaction, you are taking risks with your own funds. If the transaction fails, the funds are gone. However, don't forget that your original intention to enter this transaction is to expect profits.
Gambling and advantages
When playing roulette or slot machines, you can't control any changes in the game. No matter how you practice, you can't add more wins for yourself. Trading, in fact, is more like poker or similar games. The playing method is different. The similarity between trading or poker is that you have the opportunity to practice skills that can enable you to win more games. Therefore, it is important to distinguish between gambling activities with uncontrollable results and gambling activities that can develop key skills to control small changes and parameters.
Gambling, luck and trading
As you can see, the transaction meets all the criteria for gambling. On the other hand, through training skills and advantages, traders can have a better chance of winning. What we want to say today is, "gambler is not a bad word".
Traders face uncertain trading results. You can't control what will happen next. Suppose you analyze the trading results of the past few months or years and calculate that the profit probability is 60%. Through this probability, you can be sure that in the next 1000 transactions, there are about 600 profitable transactions and about 400 loss transactions. But what this profit probability can't tell you is what will happen in the next 5 to 10 transactions. The result of any transaction is completely random. Even if there is a 60% chance of profit, the next 10 transactions may still fail completely. At this time, many traders will think what they have done wrong, is the market changing too fast, or is there a problem with the trading strategy? Only professional traders who understand the principle of data application can understand that even if there is a 90% chance of profit, the first 10 transactions may lose completely or make all profits.
Gambling does not mean that the outcome of your ongoing activities is entirely determined by luck. You must know that you may not be able to control the results of each transaction, but you can still know the long-term profit trading ratio. Coupled with the trading advantages you have developed, you can still become a winner in the market.
3 types of gamblers / traders?
If you have a clear understanding of yourself, it is conducive to making reasonable adjustments to the transaction. Dylan Evans, founder of project point, a global risk intelligence solution company, once divided gamblers into three types. We can simply see which three types are. The first two types of gamblers represent most retail traders. You can compare whether you have found your own shadow.

Problem gambler / trader
The purpose of problem gamblers / traders is to seek stimulation. He will take huge risks that he can't afford and focus on getting rich quickly. He doesn't follow any clear trading strategy. If one trading method doesn't work, change another. This type of trader is easy to fall into the trap of fraud, or easily believe in cheap but vulnerable trading robots and intelligent trading systems (EAS). Even if the margin was increased, he still did not repent and would not immediately give up the transaction. He only thought that the trading strategy was bad or the market was too bad. He constantly pursues the dream of becoming rich and looks for a trading Bible that can help make a profit. This type of problem gambler / trader will never be profitable.

Entertainment gambler / trader
Entertaining gamblers / traders trade to stimulate and have fun. He takes relatively small risks in every transaction, and of course he doesn't want to make big money. This type of gambler treats the transaction as an activity, as an interaction with other traders, and as an opportunity to challenge. He usually chooses not to trade after losing all the funds in his account; Or when he makes some profits, he will continue to look for other interesting things to do. He doesn't trade often. He just takes trading as one of his hobbies.

Professional gambler / trader
The only goal of professional gamblers / traders is to make a profit. Problem gamblers / traders are hardly professional traders, while entertainment gamblers / traders sometimes turn into professional gamblers / traders. For professional gamblers / traders, trading is a job and a source of income. He will trade without emotion. His trading life is usually strict and single. Professional gamblers / traders basically have trading strategies. This set of strategies is developed by integrating their own experience with the suggestions of other traders or mentors. He knows that long-term trading will always make him profitable, so he doesn't worry too much about the results of a single transaction. The advantage of a professional gambler / trader lies in the attention to details, principles and the continuous improvement of the ability required for success.
The most important thing in trading is that you need to calmly face all kinds of uncontrollable results. However, keep in mind that all results do not depend entirely on luck. In the long run, you will find that there is no need to worry too much about the failure of a single transaction. As long as you do all your trading homework, there is no reason why things will not develop in the direction you expect.