We define gambling as taking a risk in the hope of a desired result. Therefore all forms of trading are a form of gambling. Speculating in the forex market is not an exception. However, there is a significant difference between games of chance and forex trading.
Not surprisingly, most casino games give the house an edge of anywhere from 1 percent as in blackjack, to 29 percent in the case of keno. The point is that if you enjoy Las Vegas long enough, you will be the one paying to light “The Strip.” The house always wins.
In contrast to the forex market, on the other hand, there is no house. In fact, when you become adept at reading the market you can play the role of the house. All you need is an edge or what experienced traders like Jordan Lindsey commonly referred to as “finding value” in the parlance of the forex trading world.
When Mr. Jordan Lindsey, founder of JCL Capital, proposes that 7 percent returns can be attained month after month, he is telling traders that they have an edge. Value is everywhere in the forex market. It is particularly apparent looking at price charts.
Concepts such as support and resistance represent one example of finding paths to value. For instance, knowing that price action tends to respect a return to previous levels of support and resistance (70 percent of the time when viewed in the one-hour time frame), we can exploit the market’s tendency to surrender pips to us. In fact, this situation represents a 30 percent edge in the trader’s favor.
Once identified, traders should always exploit their edge. There will be times when it does not pan out, and such “high-probability” trades lose money. However, once you have become knowledgeable about chart patterns and the statistic regarding their performance, you will be on the precipice of unlocking the vault.
Jordan Lindsey has said that achievable forex trading goals if adhered to, in the fullness of time can lead to multi-million Dollar success. The rungs in the ladder of a trader’s success consist of diligence and the ability to identify value when it presents itself.