Updated: Nov 19, 2020
Gambling is defined as staking something on a contingency. However, when trading is considered, gambling takes on a much more complex dynamic than the definition presents. Many traders are gambling without even knowing it.
Short term trading is a flutter, let us not pretend otherwise, some illicit brokers want you to think it’s an exact science, that they have algorithms that will predict the future and consistently make you money.
Online trading like online sports betting and online casinos have boomed since the 1990's, anyone with a computer and a decent internet connection can do it.
So why trade the markets?
Trading began when man started to walk, so it is not new. Supply and demand, Adam Smith etc.
“the action or activity of buying and selling goods and services”.
With online trading such a Forex & CFD’s you get the chance to speculate many assets and currency pairs.
There are a lot of economists and analysts that overcomplicate the methodology of the markets. It is simply supply and demand at a specific time. Buy low, sell high and vice versa.
Making informed decisions by understanding why assets move and what influences the movement gives a trader a good chance of making a winning trade.
Anyone who remembers the Brexit referendum and how Sterling devalued overnight will understand the potential big movements in the market when significant events happen.
Trust me, we are coming to see much more action and movement in the markets in the coming months.
COVID is all on our minds and has caused misery. For businesses, we can all see which companies have been hardest hit by the pandemic.
Cruise liners, airlines, hospitality, hotels, restaurants, cinemas, shopping centres, tourism, theatre, clubs & pubs ☹ just a few obvious examples.
Many traders are shorting these stocks but are ready to pounce when they see the pandemic start to slow and specific stocks will rise again. Sell high buy low.
The big internet companies have made massive gains. Again obvious, were at home, we do not want to go shopping or can’t, so we buy online.
Gold remains a ‘safe haven investment’. Gold hit $2,000 for the first time in August. Where else shall we stash our money? Cannot see interest rates rising in my lifetime again. Will this change with a vaccine?
Will the demand for Oil ever come back with COVID and the push for alternative cleaner energy?
How will the markets react to the US Election? Does the Market still support Trump, what about the Trade War with China?
What will happen to Sterling if the UK leaves Europe with no trade agreement?
This list is endless, and it forms part of sentimental and fundamental analysis.
Some traders love volatility and its coming fast! Giving them an opportunity to catch a quick sudden sharp movement and take profits in a short period.
If you did not predict Manchester United losing 6-1 to Tottenham or Villa beating the Champions 7-2 you may have a better chance of predicting the markets over the next few months.
The markets are fickle and erratic but there are certain assets that move in a direction you can predict if you get to understand their dynamics.
Want to practice, sign up, create a demo account from our recommended Brokers and get ready.
The biggest decision is to trade with reputable regulated Brokers and not get hoodwinked into believing you will make small fortunes with small investments.
REMEMBER YOU CAN ALSO TRADE AN ASSET SHORT AND MAKE GAINS WITH CFD’s.
You can also hold a trade until it either makes money, breaks even, or mitigate some of your loses. You can’t do that with football or a horse race.
We are here to help you choose the right broker and get a feel of the markets.