Can a Christian Trade Forex?
Someone argued that in Forex trading, one can only win at the expense of another and hence, it is no difference from gambling and it is unproductive and wrong to do so.
Trading—with its promise of high income, financial freedom, sometimes frenetic pace, highs, and lows—can become an addiction for some people, just like alcohol or gambling. Forex Trading is Gambling Forex trading is gambling without a doubt. However, there is a deliberate ploy to keep you from knowing this truth. This single truth which once accepted could change your trading style forever and make you a very successful trader is hidden in plain sight, often disguised. Is there a difference between forex trading and gambling? I have been asked this question on more than one occasion and it is a good one as it can make the difference between. Every forex trader has been a victim of gambling at a point in his trading life.However the good news is that we can change, especially using and applying the truths of these numerous lessons from Nial the Professor.
Lets begin with the statement of 'one can only win at the expense of another'
Would you not apply for a job knowing that if you succeed, other applicants will not?
In any competition, there will be winners and there will be losers.
Moreover, in trading (not gambling), losers lose, not because another trader took from them and winners win, not because they took from a losing trader.
A 'trade' is a business transaction, where the buyer and the seller agree on the value of something exchanged, be it currencies, stocks, bonds, futures contracts, cars or houses etc.
There is no disagreement between the buyer and the seller and there is nothing unethical about trading.
The fact is that the buying and selling of currencies is no difference from the trading of goods which we try to buy at a lower price and sell them off at a higher price to make a profit.
...you make profit a dirty word, Singapore dies...
- The Late Mr Lee Kuan Yew, Founding Father of Modern Singapore
What about 'it is no difference from gambling and it is unproductive and wrong to do so'.
The difference between the Casino and the Forex market is that, most are games of chance in the Casinowhile it isabout economy and a contest of strategy for the Forex market.
Unlike the gambler who has no control of the process and outcome of the game of chance, the trader can rely on price patterns, fundamental and technical analysis to decide on the opening and closing of a position with a probability of winning in his/her favor.
Another good way to differentiate trading from gambling is this:
Imagine playing a game like blackjack and not having to put any money on the table until I have seen the dealer's cards, and then being able to risk as much or as little or even not at all.
Furthermore, if I do decide to proceed, I can change my mind and withdraw my money off the table as long as the opening price that I set for buying or selling (stop or limit order) is not met - THAT'S TRADING!
In addition, I have the ability as a trader to increase my profits (let my profits run) whenever the odds are stacked in my favor and mitigate my losses (cut my losses short) when my decisions are wrong.
Hence, a prudent trader is more like an astute businessman or for that matter anyone who has the seriousness to make and control buying/selling decisions.
All of us have to take some calculated risks in our transactions in order to achieve the potential rewards that we envisaged.
Is Forex Trading Gambling In Christianity
Forex trading is an essential economic activity.
The Forex market facilitates the proper functioning of global trades and market participants including spot traders contribute to the liquidity for the exchanges of currencies. International business transactions where currencies are required to be swapped will not be possible without the existence of an active FOReign EXchange market.
While Forex trading is a zero sum game where the total gains must equal all the losses, it is also subjective because there are instances where a trader's gain need not arise from the loss of another trader.
For example Trader I bought from Trader U, Singapore dollars and sold the S$ later for a profit after the S$ has appreciated in value.
Similarly, Trader Ucould also profit from the exchange had he bought the S$ at a lower price before he sold it to Trader I for a profit.
Is it wrong to trade?A stricter interpretation of t
he Holy Bible's
8th. Commandment 'You shall not steal
include activities that cheat or harm to enrich oneself.
Like any other legitimate businesses or professions whose goals are to make a profit for ourselves, trading is definitely not dishonest as we are not out to swindle others and not harmful if we don't treat it like gambling.
It is also unreasonable to approve the trading for profit of traditional goods and services but disapprove the trading of currencies, stocks and properties etc.
In the Parable of the Talents (Matthew 25:14-30; Luke 19:12-28), we are to make good use of our God given abilities/money to achieve a positive return on our investment of time and resources.Failing to do so will incur God's wrath.
While some may interpret Psalm 128:2 You will eat the fruit of your labor; blessings and prosperity will be yours as trading our time for money like those toiling a 9-5 work day, I choose to make good use of my analytical and programming skills to automate my trading as well as for my traders to generate consistent incomes from the Forex market.
Automation increases our productivity and frees up time for us to do things that matter more to us than just hard work!
Due to its low cost of entry as compared to traditional businesses which require high capital and on-going expenditures, the spot Forex market offers a viable option to the retrenched/retired to learn a valuable skill andmake better use of their money to work for them instead of them working for the money.
Some of us who are astutein Forex trading can also choose it as a respectable profession to make a sustainable living out of this $5 trillion a day economic activity.
In short, trading is a viable way to grow our wealth. Its goal is similar to investing in properties, stocks etc. or entrusting our money in the hands of fund managers to make better use of our spare cash.
Does financial trading serve any useful purpose, or are traders just parasites?
Opinions are split, so we're just quote the 1976 Rosenthal report: 'A basic freedom we have in virtue of living in a capitalistic country is that we are free to speculate on the movement of prices. This freedom does not require an additional justification, such as promoting the interest of commercials. All that is required is that the general public not be harmed and that the market place be organized according to fair rules and procedures.'
In conclusion, there is nothing wrong with Forex trading ifwe treat the Forex market like any other market places where opportunities can be seized and risks can be mitigated.
What gives Forex trading a bad connotation is when people treat the Forex market as a casino.
It's also my hope and prayer that through my trading and programming skills, I can be a blessing to others.
A common question currency traders face is, “How is trading Forex any different than gambling?” After all, the premise is the same. You’re risking money on an unknown outcome with the hope of winning more money back.
What is gambling?
It’s a fair question, but first of all people have to define what they mean by gambling; if we assume that gambling is risking something in order to gain a reward, then people gamble everyday of their lives. If you eat at a restaurant on somebody else’s recommendation, you’re risking money on an unknown outcome based on what somebody else has told you. Every time you take the car out for a drive, you’re accepting that the benefit of the trip outweighs the risk of a car crash.
People obviously tend to have a much more simplistic view, and what they really mean when they talk about gambling is the person who bets on horses or football matches and generally, consistently loses money. From here on we will use this fairly narrow definition of gambling.
Is Forex any different?
If you try to trade Forex with no discernible plan and with no defined strategy, then the answer would have to be: no, trading Forex is basically no different than gambling. You can get lucky for a while, but long-term it’s an absolute certainty that you will lose your money. The kinds of people that trade Forex that way aren’t treating it like a business, and it’s incredibly naive to think that you can make a living that way.
Trading Forex as a business
A professional trader can actually make money as consistently as somebody who earns a salary if they know what they’re doing, but there are a few requirements that a lot of wannabe traders haven’t yet undertaken in order to get to that stage of success.
You absolutely have to approach your trading as a professional business, work hard, put time in and be dedicated to it. You must keep detailed records of your trades at all times, you must be up and ready to start as if you had a boss to report too, and you must make sure you have a thoroughly tested trading strategy to follow in order to make your trading decisions.
Developing a trading plan
Is Forex Trading Gambling
A detailed trading plan is generally the difference between failure and consistent success for a trader. Your plan must include everything, from your strategy, to what time you start and finish each day. Every single move you make in the market should be planned beforehand and based on research and study, so you know every move you make is a logical one with a positive expectation.
The biggest barrier to long-term Forex trading success is the psychology of greed and fear that affects every single trader at some point. If you trade without a plan, you will without doubt end up making decisions based on emotion rather than logic, and there’s no way you can succeed that way. If you have a trading method to follow, then fighting the demons of fear and greed becomes infinitely easier and aids your trading journey immeasurably.
Is Forex Trading Gambling
Is trading Forex the same as gambling? It can be, but the choice is yours. If you’re willing to treat it like a business and put the work in, you can take the risks away and make money just as consistently as anyone else. It’s all up to you.