For example, I know 3 traders personally who make a living with the profit of the forex trading. The long term spot forex market traders analyze the macroeconomic trends and join before anyone else. There is an edge on long term-swing trading, what about the gambling?
Are you sure that they are "traders"? Not investors? Or people which selling their "insides" to others?
Ah, understood. Of course this is not "traders" which i was talked about.
In trading, the losses should be smaller than wins like in gambling but there is a difference: Traders can use stop loss and limit orders for managing the risk/reward. Gamblers are emotional which makes them weak, traders don't need to make an instant decision because the trading position can go back to the green zone after staying in the red zone for a long time.
Yes, in gambling if you lose, it's very huge depends on the amount you bet. While in trading, there are loses but minimal only since it requires timing to avoid huge income loss.Traders are emotional too, it depends on person.
Gamblers risk management in his head, but he still have it.
Only bolded text is true.
Also, with short position your potential loss (if you for example do not make stop loss) is endless. Like in gambling tho