Similarities and differences between investment and casino activity are fairly popular topics of discussion.
This is perfectly understandable, but our take as conveyed in the post ‘Is Forex Trading All About Luck? Is it a Gamble?’ is that there is nothing in common between the two.
Yes, it’s true that both investing (forex or otherwise) and casino gaming involve putting up your own money in the hopes of making it grow. But beyond that, comparisons are false.
Investing is based on informed decision-making and data-driven strategy; casino activity is largely about chance.
With all of that said however, there are some general lessons that can be learned in casino gaming that can be applied in a market like the forex trade.
Consider the following.
1. Vetting Platforms
One thing that online casino gamers in particular tend to learn quite quickly is that they need to vet and research gaming platforms before depositing any real money.
While it’s fair to say (somewhat cautiously) that most of the mainstream casino gaming sites are trustworthy, it is also true that there are less reputable platforms out there.
Some might not be particularly secure to deposit money to; some might not adhere to gaming fairness standards; some might not even be operating legally.
Thankfully, forex trading sites don’t face these same problems, nor are there as many potential issues.
Nevertheless, it is still important to find a forex trading option that is secure, reliable, and affordable.
Someone with experience playing at online casinos will be comfortable looking into the pros and cons of different brokers.
2. Managing Deposits
Somewhat similar to vetting platforms is figuring out how to safely deposit and manage funds on a web-based app or platform.
Most casino gaming sites invite players to deposit their money into on-site accounts, and then draw from those accounts when playing games (as opposed to paying for each individual gaming experience).
It minimises the total number of transactions that need to take place, but it also necessitates a level of comfort with monitoring an account, making withdrawals, and so on.
In many cases, forex brokerages work essentially the same way.
Indeed, The Balance describes a forex trading account as “something like a bank account where you can purchase currencies and old them.” In both instances, the expectation is to leave funds in place on the site and manage them from there.
For a first-time forex trader this can be somewhat daunting.
But someone with gaming experience will again have attained a level of comfort with similar practices.
3. Understanding Procedure
A lot of people think of casino gaming as a sort of free-for-all: players placing bets, cards being dealt, dice being thrown, and chips being collected.
It can certainly look like this, but the reality is that there is etiquette, procedure, and strategy involved.
Consider for example the game of roulette, which is about as simple a chance-based casino game as there is.
Even where this game is concerned though, an article on roulette etiquette on Gala Casino suggests that there’s a full process playing out.
Players have to pick a table, greet a dealer, place a bet, wait for the dealer to handle that bet, make quick decisions based on outcomes, and — when things go well — collect winnings.
It all happens quickly, but it’s a lot to keep track of.
And it’s the sort of process that can actually prepare someone for the environment of forex trading.
Between deposits, choosing forex pairs to focus on, inputting trades, and dealing with brokers, the process isn’t entirely dissimilar, even if the practice itself is entirely different.
4. Learning From Failure
It almost goes without saying, but the necessity of learning from mistakes is crucial in any investment environment — forex or otherwise.
A poor investment shouldn’t be dwelled upon, nor should it inspire an emotional reaction.
Rather, it should lead to analysis, so that a trader can determine what led to the mistake and what could have been done differently.
This process is certainly one more thing that can be learned not just through casino gaming, but through any sort of gaming or competition.
Rarely if ever is it a bad thing to draw lessons from failure, and regular casino gamers in particular get a chance to learn how to move on from mistakes and do better the next time.
To reiterate again, there is no real similarity between these practices, and gaming is not a form of investment.
Because people often look for similarities between the two though, it is worth considering that some of the underlying processes and methods can overlap.
Those familiar with casino gaming need to go through the necessary research, education, and analysis if and when they explore real investment opportunities.
But some of the steps involved in choosing a brokerage and conducting trades may feel pleasantly familiar.