Investing in Forex is not much different than placing a bet at the casino roulette table. I agree that with a certain amount of knowledge, a Forex trader can make an educated guess as to which direction his investment will go. But in most cases, no matter how much research you do and how many charts you follow, the end result is just a matter of luck.



Poker players are usually successful Forex traders. Why? Because the same abilities are applied by both.

Despite the many trading mavens who brag about their scientific theories, at the end of the day, there really aren’t any conclusive theories that work all the time for every trade. So without a system to fall back on, how can a trader make any money?

Logic and Brains

 

Let’s face it. Even a good card player must use a certain amount of logic and smarts. A professional poker player will remember which cards have already been revealed and this will give him a clue as to which cards the other players are still holding in their hands. He relies on the theory of probability and it usually works.

A seasoned Forex trader , too, will fall back on his previous experiences in order to choose how and when to place a new trade. Predictability and probability based on his own trading past come into play when deciding how to trade. Some traders want to be in the market all the time as they fear they will miss a move while others are more cautious.

Relying on your own instinct in Forex trading is often a risky decision to make, however. But that’s exactly what day traders do. They trade all the time with little thought to trends, momentum or other indicators. They make small moves and they are often profitable. But not always.

Poker Face

 

Another similarity between card players and Forex traders is the need for keeping a straight face. A ‘poker face’ is one in which a player shows no expression whatsoever so the other players don’t know which cards are in his hand. With Forex, keeping cool and not making the wrong moves is important for every trader.

Knowing when to ‘fold’ holds true in cards as well as trading. Once a card player has decided that his hand is not going to be a winner, he ‘folds’ and exits from the game. A Forex trader needs to pull out when the price is near or at the price he had anticipated and not decide at the last minute to stay in for additional profits. He will only end up losing when the price starts to drop. This demands discipline and patience. Gamblers and traders alike must know that there will be losses alongside every win.

My advice: Don’t get disillusioned. Just stay in the game.