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Ali Farhad

Is CFD Trading a Gamble?

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Hi Ali

In short no…

Trading is about putting odds in your favour. Think of it as a business, if I buy 100 t-shirts from a supplier tomorrow with the intention to immediately start selling them and I don’t have a website, marketing strategy, or any idea on the actual value of these t-shirts, then I am just gambling on the fact I think I can sell them.

But, if I first build a strategy to sell them, set up social media accounts, an eCommerce website, understand the costs associated with running the business and understand my market then I have a business that I am invested in. Of course, there is more to it than that, but you get the idea...

CFD trading is the same. If you understand your business, the market place you operate in, who you are dealing with (CFD brokers), the costs associated with CFD trading and have a strategy that gives you a defined edge in the market, then you have a business plan. The money you put in is merely an investment in to your business.

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Posted (edited)

Given that CFDs enable you to speculate on rising or falling prices without taking ownership of the underlying asset, and can be used to trade a range of markets including shares, forex, indices and commodities of course it's a gamble, the way I see it any kind of trading means gambling. As a trader I can say one thing, I would very much preffered to risk my funds gambling at a casino like https://qualitycasinos.info than trading. At least at the casino i might get lucky and win while trading seems to not like me.

Edited by john krick

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