Gambler or Investor?
The main difference between a gambler and serious investor is that the investor has a clear set of rules, strategies and goals that he wants to achieve and he is realistic about his own account.
In the other hand the gambler don´t have a set of goals and strategies that he or she follows with discipline and when makes a profit is never protective about the money made in general engaging in high margin use after a successful trade and following a recipe to failure.
The investor has mathematical plan when to enter a trade when make profit and when step out of the trade with a loose and follow that 3 steps in religious way.
Other main difference between a gambler and a investor is:
The gambler don´t have a good sense of how much margin he can use, the investor is highly realistic how much money can make and how much margin can use and is inside the market only to create a revenue and not searching for adrenaline.
Emotional control and a good plan and follow it in pragmatic way are the keys to be successful Forex markets, and when you have a mathematical plan that actually works and is realistic, is the recipe to success.
The mathematical plan can involve several things like spreading of your money in several currencies pairs or commodities, and never use more that 5% of required margin related to the money that you have per pair.
Giving the example if you have an account with 1000 usd only use 50 usd of the required margin and never over use the leverage for the quantity of money the best option is 200:1 of leverage with pip value around one (1) with trade size of 10000 ,that will give you space to your pair breed and make you more comfortable with your trade.In volatile markets you have to have a good plan that will avoid you from major loses and protect your funds, be realistic that you will have some loses and you need to step out sometimes but if the quantity of the positive trades that you make overcome the negative ones you will be earning money.
it´s all a question of understanding the nature of investments and use them on your advantage more them use them again you, and don’t engage in high risk investment that will put in case your liability inside the Forex markets.
Thanks and best luck to everyone