Gambling

1. What is gambling in proprietary trading?

Gambling in proprietary trading refers to reckless and impulsive behaviors where trades are placed based on emotion, luck, or speculative guesses rather than analysis, strategy, and discipline. Examples include:

• Trading without a plan.
• Over-leveraging.
• Revenge trading after losses.
• Ignoring risk management rules like stop-losses or position sizing.

2. How does gambling differ from professional trading?

Professional trading involves:

• A clear, data-driven plan.
• Strict risk management.
• Consistency and discipline.

Gambling is characterized by:

• Random, emotion-driven decisions.
• High risks with no safeguards.
• Unpredictable, unsustainable outcomes.

3. Why is gambling prohibited by Gold Funded LLC - FZ?

Gambling breaches the trading rules because it:

• Increases risk: Reckless behaviors can lead to significant drawdowns and account losses.
• Lacks professionalism: Gambling undermines the firm’s focus on structured, sustainable strategies.
• Violates firm policies: Behaviors like over-leveraging or revenge trading go against the rules designed to protect traders and the firm.
• Harms long-term results: Gambling leads to inconsistency, making it unsustainable for professional trading environments.

4. What are the consequences of gambling in proprietary trading?

If identified, gambling behaviors can lead to:

• Account Suspension: Loss of trading privileges with the firm.
• Termination: Permanent disqualification from trading with the firm.