Forex or gambling: where is the line?
Trading with an edge and a risk plan is a business; trading by gut with money you can't afford to lose is gambling wearing a suit. Most beginners sit somewhere between the two and drift.
How do you tell which side you're on?
- the signals you look for in your own behaviour
- the point where you realised you'd crossed the line
- the rules that keep you on the trading side
This thread welcomes honest self-examination. The revenge trading guide describes the classic warning signs.
Background: Revenge trading and overtrading: how to spot them and stop
Trading to win back a loss, or trading out of boredom, are two of the fastest ways to damage an account. Learn the warning signs and the rules that interrupt them.
What is revenge trading?
Opening a trade to win back a recent loss rather than because your trading plan gives a signal, often with a bigger position than usual.
How do I stop overtrading?
Set a maximum number of trades and a daily loss limit in advance, require a written reason from your plan before each entry, and check in your journal whether the extra trades have helped or hurt your results.
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