The Casino Mentality in Trading

Is it possible to make money in Forex? Sure it is, and Exness Singapore is a great example! What is the difference between Forex and casino games, slot machines or thimbles?

It is this attitude to the forex market, equating it with one of the varieties of gambling, that is beginning to be traced in the analytical news reports of many media outlets.

What Is Casino Mentality?

The psychology of a gambler in an online casino seems simple, with ulterior motives behind it. People don’t start gambling for money. Those prone to gambling addiction pursue other goals:

• Self-affirmation. Winning the slot is like winning in life. To achieve it at any cost, and to show that a person is the best is one of the most common reasons. It’s just that in a slot, the price is equal to the money spent
• Cognition. Among gamblers, there are many people with a mathematical mindset and developed logical thinking. They like to calculate moves, combinations, probabilities, and even ‘understand’ the automatics of slots. They conduct a kind of ‘win-lose’ experiments
• Lack of emotion. Victory always brings positive emotions, which is often lacking in real life. In fact, failure also opens up the emotional realm. A person does not care whether he wins or loses—the main thing is to get an emotional charge.

It has been mathematically proven that in gambling, a 5% advantage in favor of the casino gives a guaranteed income of 5% from every dollar of players, this even applies to winning bets of guests.

A trader, like a casino, should not worry about a specific loss; it is better to shift his attention to the macro level—the result of 100 or 1000 closed positions.

Take an example from the casino, many of us have heard stories about a series of continuous wins at the tables, sometimes more than 7–10 times in a row.

How It WILL Harm My Trading Performance?

Professional gamblers calculate their own strategies, hoping to gain at least 1% advantage in a long series of bets.

Newcomers to the Forex market, who consider themselves far from casinos, believe in the existence of advisors with 100% profitable trades.

They do not pay attention to the fact that only the Martingale principle gives such a result, which eventually merges the entire deposit.

The low likelihood of a casino advantage allows gamblers to often win winning trades many times in a row, keeping them ‘at the table’ with a sense of excitement, which plays into the hands of the organizers of gambling.

The company wins at the macro level in a long series of bets. How exactly this happens can be seen in the example of roulette.

Main Differences Between Trading and Gambling

Experts note that trading on forex, stock and commodity exchanges is fundamentally different from games in casinos, slot machines:

1. Uniform quotes around the world. So, the exchange rates of all currencies of the world in all banks and exchange offices of the planet depend on the movement of currency pairs in the forex market.
2. With the sums of money earned, in thimbles or slot machines, did anyone other than the organizers themselves earn millions of dollars?
3. The legality of trading on the stock exchange: there was a comparison of forex with casinos, not with gimmicks, and proceeding from the weaknesses of forex as a “world casino”, it was shown how to deliberately find the weaknesses of the computer settings of the market (or the organizers of the forex game) and on the basis of this consciously take profit.

Otherwise, there are similarities between Forex and any gambling in the world:

• The organizers launch any financial game for the players to lose, not to win;
• The best clients for the organizers of the game are gambling beginners who do not understand anything in the game, but who have come in search of easy and simple big money (no need to study, look for weak links in the game and consciously take profit—no need, just start playing for money as quickly as possible. How such newbies will finish, of course, everyone understands)
• The best methods of outplaying the organizer of gambling are instantly banned.

Discipline, Calculating and Taking the Risks

When it comes to discipline, calculating and taking risks, the recommendations of experienced traders can be summarized as follows:

• Do not open a real account until you learn to understand every market movement and consciously take profit
• Treat forex and stock trading as a hobby at first, not playing for money, learning the basics of the game and a possible profession in the future for free; (free school for beginner traders)
• If you understand every step of the market movement, take profit from month to month on a demo account—open a real trading account for an amount that is not vital for you
• Never borrow or borrow money to work on the stock exchange, forex.

FAQ

What is the essential difference between a gambler and a trader?

Profit with such a seemingly insignificant percentage advantage is guaranteed by the continuous process of gambling and the invariability of their rules. In the language of the Sg Exness trading, this means participation in all transactions strictly according to the rules of the trading system.

What’s the main advice to succeed in either trading or gambling?

When trading or playing for real money, give yourself a separate budget. In a month, this should be an amount that you will not notice the loss of. Do not bet more than this amount. If you lost, come back in a month. Better save the winnings and accumulate.

What is more financially beneficial: gambling or forex trading?

Considering all the possible risks, depicted in the article, gambling is more dangerous and, as a result, is less beneficial. Forex trading is more for money-making.