Forex trading is considered by many to be nothing more than gambling. After all whenever you take a position in a particular currency pair, you are essentially betting on the price to either go up or down by taking a long or short position. So is forex trading really just another form of gambling?

Well to the uneducated person or the inexperienced forex trader, it would appear to be very easy to arrive at this conclusion, particularly if you start watching the chart of any currency pair and observe how it moves in a seemingly random fashion.

However many large financial institutions around the world, and indeed individual traders, make consistent profits from trading forex markets, so you can be pretty sure that they’re not gambling away huge amounts of money every day at random.

There are of course many different ways you can give yourself an edge trading forex. The main way is of course through technical analysis. This is basically the study of charts and technical indicators to identify trading patterns and help you find potentially high probability trading positions.

They work so well because traders all over the world watch the same charts and the same technical indicators and see the same patterns repeating themselves over and over again. This allows them to take positions knowing that the price will most probably behave the same in this instance as before.

For example if the GBP/USD has found support at say 1.9600 three times before, and does so once more on this occasion, then many traders will have also noticed this and will be encouraged to take a long position, and in many ways it becomes a self-fulfilling prophecy.

Furthermore with the advancement of technology these days so many people can quickly and easily track any technical indicators they want thanks to the internet so technical analysis has become an even more valid way of trading forex.

So while it is true that on a very short-term basis, there is an element of randomness in the markets, if you look at the longer-term charts and use technical analysis to analyse the markets and make trading decisions, you can place the odds of winning firmly in your favour.

Therefore to answer the original question I would say that forex trading is definitely not another form of gambling because with a bit of education you can become an accomplished technical analyst and determine high probability trading positions where you win far more than you lose.

By: James Woolley

Have you ever wondered that you might have an inner genius to learn how to trade forex? I asked this because I have to say that not all the people in this world are suitable to trade forex. Why is that so? Some people just get very nervous and close a position whenever there is just a few pips movement against their direction, some can’t even sleep when they lost a small trade etc.

I’m not joking but if you are someone who can change your bad habits to good ones, you stand a good chance to be a successful trader. So before you find out what kind of trader you are and want to start learning how to trade forex, here are 5 forex tips to help you jumpstart your forex trading business.

1. You may want to start watching the values of currencies and see how they fluctuate. This can also lead you to success, surprised? The patterns of a chart changes every now and then, and not every time it is trendy. So you would want to learn to identify between choppy and trendy markets, and identifying a trend is the key to make you consistent profits. The most common major currencies that are observed are the GBP/USD, USD/CHF, USD/YEN and EUR/USD.

2. Knowing when the trend is ending is important. So when the trend is exhausted, it is the time for you to buy back your euro for US dollar and make another transaction. As the value of other currency pairs are constantly change, you must know if it is just a insignificant movement or is it an actual trend that is moving against your trade. A good forex trend system will be able to tell you that so you can maximize your gains.

3. Before you even start on trading and looking at your forex charts, you must roughly know how the current economy will affect your trading. It is very important that you plan for what you will be expecting. If you found that a country’s currency that has hit an all-time low and you find out that another country is going to put an influx of aid to help them out, it may be the time to snatch up as much as you can as their economy will more than likely rise, as will the value of their currency. You can get forex reviews of the currency market from the internet.

4. There may be traders who are successful in very short-term trading, or forex scalping, but I would advice you use long-term forex trading strategies in the beginning as it is less risky. If you are going for longer term, you should be investing in countries with more stable economies as there will be less fluctuation in their currencies. Euros and Swiss francs are two good currencies to trade if there is a good trend.

By: Daniel S.

William M asked:

I am going to turn 18 tomorrow and I’ve had a practice account for several months and have been experimenting with it all that time, trying different strategies and techniques and have found a way to keep on making small consistent profits. What I’d like to know is for when the time comes tomorrow to put in real money, what would be a recommended number of times I place a trade every day I trade forex to make small consistent profits? Good answers would be much appreciated. Thanks.

Forex earnings: $10K to $34K in 91 days

klrpnda@sbcglobal.net asked:


Having a real tough time being able to make money trading the forex market. Anyone make consistent profits and care to share some tips?

Forex earnings: $10K to $34K in 91 days