29/07/2024
For those that believe trading is gambling, I feel it is one of the reason you are not profitable.
Trading is not gambling.
There are 3 types of analysis in CFD trading
1. Technical analysis
2. Fundamental analysis
3. Sentimental analysis.
While in gambling there is only one kind of analysis which is.
1. Sentimental analysis.
What is sentimental analysis ?
This is an analysis base on your beliefs, most time, beginners trade base on this, they pick a buy or sell because they feel that it is the way the market is, when they see red candle they sell and when they see green candle they buy.
This is the same thing with betting, you bet base on sentiments, believes so it is gambling.
What is Technical analysis ?
This is what a professional trader uses to know the direction of the market, it shows the historical aspect of the market, with the use of the chart.
Studies have shown that the market repeat its self and give room to make money increasing your chance of profitability, you can be very successful using technicals and win 80% of the time you place a trade.
What is Fundamental Analysis ?
This is also a form of analysis used by professional traders, it shows the futuristic aspect of the trades, eg News events, international economic activities, high volume investors and many more.
The event on governmental speech can cause a boom or a dump in the economy leading to either a buy or a sell and some traders have master the act of understanding the news events and its impact of the economy.
With the knowledge of technical analysis and fundamentals, forex is not a gambling.
Don’t let people who don’t understand anything tell you what they don’t know