Forex Traders or Forex Gamblers?
A 10-year experience at a forex broker gives me a kind of “gazing” ability at the character of a trader; is it really a trader or gambler .
Let’s try to do a small analysis. Let’s look at the definition of gambling based on the Big Indonesian Dictionary: “Risking a sum of money or property in a game of guessing based on chance , with the aim of getting a sum of money or property that is greater than the original amount of money or property”.
Well, the topic this time is expected to open your horizons about the firm differences between a trader and gambler. Maybe even if you assume that you are not the type of gambler, you should keep reading this article to the end, because there are many traders who are not aware that they are undergoing gambler behavior.
The name is gambler, if they have $ 500 in their account and run out, then they will add another $ 500 and always be repetitive. They never change the strategy or the way they make the transaction but still hope to be profitable. That’s outrageous ignorance.
Different traders with gamblers
In trading, you decide whether to come out as a winner or loser. The problem is, every person has the potential to become a gambler, so you must have a mature plan to fight the temptation.
For that, you must know the characteristics that distinguish a trader from gambler.
The characteristics of a “forex gambler” are:
- Don’t have an effective trading strategy
- Don’t have or don’t use a trading plan
- Don’t care about risk management
- Only focus on profit opportunities, do not want to focus on the process
- Always emotional when trading
- Long wishful thinking, so expect too high a profit
- Overtrade, which is opening positions too often and / or too much
- Do not want to do an evaluation
- Want to get lucky quickly
Meanwhile, the characteristics of a true forex trader are:
- Mastering effective trading strategies
- Have a trading plan and apply it well (discipline)
- Very focused on risk management and setting risk limits for each trading time
- Focus on the process. For him, if the process is correct, he does not need to worry about profits
- Avoiding emotions when trading whether when it is profit or loss
- Only make transactions at the right time and amount, in accordance with the strategy and trading plan
- Setting targets according to analysis and trading plan
- Always conduct periodic evaluations of trading results
- Treat trading like any other business; he realized that to get profit needed a process
Now, you can already see the difference between traders and gamblers.If you notice, the majority of the surgery is psychological factors. Of course it comes from yourself when a trader interacts with a market that is not “benign”.
If you find the characteristics of gambler in yourself, you should immediately eliminate these elements and replace them with the characteristics of the real trader as listed above.
Fortunately, unlike genuine gambling behavior, a forex trader should be easier to escape gambler habits. The limitations are clear, so all you have to do is change it to the habits of a true forex trader. If you can, then you are one step closer to becoming a professional forex trader.