Is Investing in Forex Like Playing the Lottery?

People that invest in the Forex Market are the types that like to take chances. They are the ones that love roller coasters, and have always wanted to jump out of a plane with a parachute. While these people like to take chances and like living on the edge, does that mean they are willing to invest their money on something that depends solely on luck? The answer is not quite as easy as yes or no.

How Forex Is Like The Lottery

The Forex market is a very volatile entity. It depends on so many factors that change multiple times throughout the day. The economies of many countries can be doing really well in the morning, but could tank by the afternoon. Politics can have a huge impact on the worth a country’s currency, and therefore, it can increase and decrease at a moment’s notice. The weather and other natural disasters could play a huge role on a currency. If a volcano erupts, an earthquake happens, or a tidal wave occurs, the currency of the afflicted country will fall drastically. On the other hand, the emergence of a stable government in an unstable country, or a successful election for the first time in a country that was once run by a dictator can increase the worth of the currency. Betting on the worth of the currency can be like betting on the lottery, because the chance of betting incorrectly is pretty high.

How Forex Is Not Like The Lottery

What makes Forex different than the lottery is the amount of research that goes into decisions. Investors and Forex brokers use tools, such as a Forex EA, Forex Trade Copier, and Forex signals to make a good and complete Forex analysis. No matter what tools a person uses to pick their numbers in the lottery, they are no more likely to pick the wining number as my two-year-old daughter. Forex investors are able to use information in the news, and other sources of information to increase their chances of hitting it big. The market is still very hard to predict, so the chances are not as high as many stock investments might be, but it is still way higher than the chances of winning the lottery is. If you want to make an investment that will get your blood pumping, but you still want to have some control over the outcome, Forex is for you. If you just want to leave it up chance, buy a lottery ticket.