2/9★Sometimes I borrow ChatGPT's power, its 19
FX Auto Trading, the EA developerReiwa's Double-E.
Since last year, I have been writing this series aiming for daily posts.
I think I’ve managed to continue for almost a year now!
If you read what I’ve written so far,
you’ll surely come closer to better EA operation, I’m confident.
And so, since I’d like to take a short break,
I will continue posting with the help of ChatGPT.
Occasionally, I will post irregularly like before.
FX is not gambling! Understand the essence of investing with proper literacy
Hello, I’m Reiwa’s Double-E, an EA developer.
There has been coverage of Shohei Ohtani’s interpreter issue and gambling addiction,
and I am concerned that FX (foreign exchange margin trading) could be misperceived as gambling because of these discussions.
In particular, in Japan FX is still often seen as gambling, but this is a literacy issue.
FX is not gambling; with proper risk management and strategy, it can be a solid asset management method.
In this blog, I will clearly distinguish FX from gambling and share tips for approaching FX with the right literacy.
Differences between FX and Gambling
First, I will explain why FX is different from gambling.
In gambling, outcomes are binary—win or lose—and luck largely determines results.
For example, casino roulette or horse racing rely on luck as a decisive factor.
On the other hand, FX involves buying and selling in financial markets, predicting currency price movements to earn profits. Certainly, predicting price movements can be difficult, but with proper risk management, macro analysis, and technical analysis, and by following strategic approaches, you can engage in investing that does not rely on luck alone.
FX: Investment or Speculation?
Next, the oft-heard view that "FX is not investing but speculation."
Indeed, a style aiming for large profits in a short time has speculative aspects.
However, by incorporating long-term strategies to anticipate currency value changes and aim for profits, the investing aspect becomes stronger.
For example, by thoroughly managing risk and carefully choosing entry and exit timings, FX can be used as a stable investment method rather than a high-risk gambling activity.
Just like stock or real estate investing, it requires preparation and knowledge, making it similar to investing in terms of actions.
Low Literacy Fuels the "FX = Gambling" Misconception
One cause of FX being perceived as gambling is low literacy.
If understanding of financial markets and economic indicators is shallow, it may look like gambling—trading based on “whether it goes up or down.”
However, to succeed in FX, it’s important to accurately grasp economic and market trends and build trading strategies.
Also, to reduce risk, tools like stop-loss and limit orders can be used.
If you acquire these skills, FX becomes not a mere luck-based gamble but a planned and strategic investment activity.
FX as a Planned Asset Management Tool
The big difference between investing and gambling is whether risk can be managed planfully.
FX can be managed properly and used as a long-term asset management tool.
Specific risk management points include the following:
Set your risk tolerance:
Decide beforehand how much loss you can tolerate and avoid reckless trades.
Stick to stop losses:
If the market moves in an unexpected direction, quickly cut losses to minimize them.
Diversify your portfolio:
Handle multiple currency pairs to spread risk across different markets.
By adhering to these points, FX is not gambling but a risk-controlled investment method.
Conclusion: Literacy is the Key! FX is not gambling, but a planned investment
The misconception that FX is gambling often stems from a lack of proper financial literacy. Treating trades as gambling increases the risk of asset loss, but by controlling risk and forming a planned investment strategy, FX can be fully utilized as an investment tool.
Going forward, let’s continue to use FX in a correct way and gain knowledge to grow assets wisely. I will continue to share information so more people can engage in healthy FX trading by understanding the difference between investing and gambling.
With that, please continue to have a good trading life!
See you!
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【Flow from Starting EA to Intermediate】
MT4 EA (Expert Advisor), Indicator installation procedures
https://www.gogojungle.co.jp/post/1/8212
※ Gogostar Video Version ※
Even this is not understood all at once, and some people may stumble at first.
I also stumbled many times at the beginning, so don’t rush—you’ll be fine!
If you have questions, there is a “Contact Form”; use it!
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■ Gogojungle “Contact Form”
https://www.gogojungle.co.jp/inquiry
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【How to Choose EA】
Now that you’re ready to operate an EA,
you may think, “I don’t know which EA will win… I don’t want to lose…”.
So, Reiwa’s Double-E has published articles so you can assess quality through
“backtesting.”
The following articles were serialized:
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https://www.gogojungle.co.jp/finance/navi/series/1714
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backtesting backs it up.
Backtest durations are usually longer than forward testing, and
whether you happen to win on forward is not the sole measure;
if you master backtest evaluation methods, you can somewhat gauge it.
【How should EA risk management be done!?】
And no matter how excellent an EA you obtain,
if you neglect risk management, FX will collapse.
Therefore, for EA, how to manage risk!?
This is answered in the following articles.
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■ About the calculation method of EA risk management
https://www.gogojungle.co.jp/finance/navi/articles/64703
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【EA Operation Mindset is also Important】
And, to sustain EA operations for the long term, the “EA operation mindset” is also important.
For articles on these topics,
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12/30★ Year-end & New Year SP!! EA Full Explanation Course Part 3
https://www.gogojungle.co.jp/finance/navi/articles/80551
8/12 [Obon Holiday Special] Now You Can Master EA! “EA Operation Mindset”
https://www.gogojungle.co.jp/finance/navi/articles/72829
8/17 [Obon Holiday Special] Now You Can Master EA! “Notes While Operating EA”
https://www.gogojungle.co.jp/finance/navi/articles/73797
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That being said,
the content is quite substantial and important, so
even if you don’t understand it immediately, please be sure to review it!
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【Reiwa’s Double-E EA Listing】
https://www.gogojungle.co.jp/users/112481/products
Specifically categorized Reiwa’s Double-E EAs by Genre
https://www.gogojungle.co.jp/finance/navi/articles/67162
(Genre diversification is essential when building a portfolio)
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【Reiwa’s Double-E serialized articles】
■ EA Beginner Course
https://www.gogojungle.co.jp/finance/navi/series/1700
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https://www.gogojungle.co.jp/finance/navi/articles/64703
https://www.gogojungle.co.jp/finance/navi/articles/65978
https://www.gogojungle.co.jp/finance/navi/articles/64738
https://www.gogojungle.co.jp/finance/navi/articles/65619
■ How to find winning EAs from backtest
https://www.gogojungle.co.jp/finance/navi/series/1714
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https://www.gogojungle.co.jp/finance/navi/series/1701
https://www.gogojungle.co.jp/finance/navi/articles/64723
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【Reiwa’s Double-E Beliefs】
Develop EA by legitimate methods,
and gain the trust of more people,
to sustain a long-term WIN-WIN relationship,
aim to revitalize the EA market and improve literacy.
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