This is a quote I read today from author Amy Tan… “How can you say luck and chance are the same thing? Chance is the first step you take, luck is what comes afterwards.”
I think this applies nicely to Forex trading. You should have an edge when you enter the market. Your chances of success should be greater than 50%, but once you’re in the market anything can happen and you can do nothing to control the market.
We put chance on our side by sticking to our trading plan. Of course we need a good Forex trading method within that plan. Successful Forex traders are constantly managing their risk. They are disciplined and they follow a strict routine, they know they are in the business of trading and they treat it as a business. This puts luck and chance on their side.
Is Forex trading gambling? Well it is gambling when you treat the Forex market like a huge jackpot machine or roulette table where the hope of winning is dependent on nothing else but pure luck.
The problem with casino gambling is that the odds are stacked heavily against the gamblers. It is not gambling when you treat the Forex market like any other business or profession, where opportunities can be seized and risks can be mitigated, and when you have a trading method that you know has a high-probability trading edge and good money management.
The difference between the casino and the Forex market is that most casino games are games of chance, versus a contest of strategy and discipline for Forex trading.
Unlike a game of chance, the Forex trader can rely on price action and analysis to decide on the opening or closing a position with a probability of winning in his or her favor.
Do we get lucky in trading? – For sure! But by putting chance on our side we can get lucky more often than not!