Is Forex just gambling or something more?
Forex is still a relative novelty among common people, who have only recently become able to trade in this financial market. And whenever something that big becomes available to such a large number of people, controversies and debates are sure to follow in suit. Just trying to list all the different controversies surrounding ForEx trading would be a futile task, as we would need servers to store all the data on these controversies. The biggest one is definitely whether ForEx is mere gambling for a regular person or whether there is something more to it that can influence the outcome. In this article, we would like to look closely at this controversy and see how things are in reality.
First of all, just simply saying that ForEx trading is nothing more than gambling is pure nonsense, when you think of it. It has been around in one form or another for more than 100 years and saying that it is a gamble would make all the traders that have done it over the years nothing more than gamblers, some more lucky, some less lucky, who have somehow managed to navigate an entirely unpredictable market for decades. And this is ludicrous when you think of it.
However, some people claim that it is still nothing more than a gamble for a regular person who invests, let’s say $5,000. They claim that the investments you make on such a level are nothing more than gambling with your money, making your investment based on some preconceived notion that something will work and that you will have a positive outcome. Well, this is just incredibly stupid.
Forex trading is so much more than just that. It is a financial market that works according to certain laws and that is influenced by a seemingly endless string of factors that determine how a certain currency is going to fare. Gambling does not involve anything like that. Gambling is just random shuffle of elements that sometimes goes that way and sometimes goes this way. Forex trading is a market that is influenced by both the largest moves on the international market and the smallest ones.
The problem with ForEx trading and the thing that makes people think that it is all just a gamble is that it all seems too unstable and too prone to fluctuation for the regular person to be able to make any analyses and to predict a thing. However, if you are someone who is serious about their ForEx trading and if you really commit to it, it is much more about skill than about luck and before you know it, you can see where things will go and what investment makes sense to make.
In short, do not be scared by people who are saying that ForEx is basically gambling. It is a financial market that involves some luck, but involves much more skill than some people will let you believe.