Something wrong...

This is a discussion on Something wrong... within the General Trading Chat forums, part of the Reception category; Use the word 'gambler', and everybody knows where they stand,...except the ones with addictive personalities. Use the word 'trader', and ...

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Old Jun 3, 2011, 10:34pm   #1
Joined Apr 2010
Something wrong...

Use the word 'gambler', and everybody knows where they stand,...except the ones with addictive personalities.

Use the word 'trader', and everybody thinks there's a free lunch somewhere down the line.

Innit funni ow wordz realli mess wiv peeps eds?
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Old Jun 4, 2011, 12:06am   #2
 
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Re: Something wrong...

Word Schneider'sabbs word,innit
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Old Jun 4, 2011, 12:10am   #3
 
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Re: Something wrong...

Trading isn't gambling as such, there is much more to it imo
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Old Jun 4, 2011, 12:17am   #4
 
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Re: Something wrong...

depends how you do it

Quote:
Originally Posted by Doomberg View Post
Trading isn't gambling as such, there is much more to it imo
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Old Jun 4, 2011, 1:04am   #5
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Re: Something wrong...

Quote:
Originally Posted by Doomberg View Post
Trading isn't gambling as such, there is much more to it imo

No way, 50/50 each trade, it's going to go one way or the other. Just got to get on a hot streak and pile on the size when you feel lucky.
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Old Jun 4, 2011, 1:20am   #6
 
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Re: Something wrong...

Quote:
Originally Posted by JRP2891 View Post
No way, 50/50 each trade, it's going to go one way or the other. Just got to get on a hot streak and pile on the size when you feel lucky.
If you're feeling lucky you are gambling imho.


It's the risk / reward management that makes the difference.

risk < reward
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Old Jun 4, 2011, 1:32am   #7
 
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Re: Something wrong...

pretty much every decision you make in life involves assessing risk and reward, the most cautious people you meet are making decisions and assessing risk and reward. Most people who are called gamblers generally accept hight risk and are chasing high reward. When they get it right they are called a Guru, and when they get it wrong they are called a gambler.
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Old Jun 4, 2011, 1:33am   #8
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Re: Something wrong...

Quote:
Originally Posted by Atilla View Post
It's the risk / reward management that makes the difference.
That is a crutch used by people who wish to delude themselves that they are not gambling. Ask any real gambler - horses, casinos, sports, etc - the smart ones will tell you that if a 'system' doesn't work on level staking, it doesn't work. All of this attention to "money management", risk:reward numbers pulled out of the air - all of it is simply self delusion.

A professional posture will include appropriate position sizing. This means not being overleveraged. In a professional arena, such as a futures exchange, the margins are set at more sensible levels than for example spread betting companies. There are also position limits and liquidity considerations for larger players.

For an amateur, position sizing should be in place to reduce the risk of ruin. Without this, any other efforts are irrelevant as the trader will eventually blow up. However, without a robust strategy in place to take net points from the chosen markets each day, position sizing will not make a trader successful.

All of this is obvious, however the masses persist in attempts to control their gambling and limit losses. It is a crutch to avoid responsibility for haphazard, hit-or-miss trading or more accurately guesswork. Provided the gambler has rationalised affording to lose, he can continue.

The people who indulge in circular discussions with made up risk:reward numbers most likely don't understand the true probabilities of what they are trading. Without this knowledge in place, the numbers are all fantasy.

These terms are marketed to the class of wanabee "traders" - who wish to distinguish themselves from the mere gamblers. Therefore there must be mathematical systems, sophisticated financial terms, and other such props. The nature of the activity is the same - uninformed gambling - but a respectable veneer is added to attract the professional and managerial classes.

kimo'sabby makes a very good point about use of language. Consider the spread betting companies who brand themselves as "spread trading" companies. Consider the nature of the marketing.
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Old Jun 4, 2011, 2:29am   #9
 
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Re: Something wrong...

good stuff hoodoo

It really is a form of gambling in my opinion.

If you buy an outright long position, you are 'betting' that someone else will buy it off you at a higher price later.

All of the people that buy after you are betting exactly the same thing.

Can we call it behavioural analysis gambling?
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Old Jun 4, 2011, 5:44am   #10
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Re: Something wrong...

It's gambling if you place your bet and hope it will go your way. It's less than gambling if you place your bet and know what to do if it doesn't go your way. I know of people who are willing to go down with the ship. Now, that's gambling.
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