Difference between trading and gambling

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Old Nov 12, 2009, 11:15pm   #1
 
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Difference between trading and gambling

people often compare trading to gambling, they are not the same!

Except for some table games like blackjack the biggest difference between trading and gambling is that previous results have NO effect, unlike in trading.

for instance, on a roulette wheel..no matter what has happened in the past it has no physical effect on where the ball will land, it is always the same fixed odds. In trading previous results DO effect the outcome of the market.
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Old Nov 12, 2009, 11:49pm   #2
 
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but if you dont know what the outcome of an event will be, even if you have an edge, it is still gambling - just a good gamble
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Old Nov 13, 2009, 12:07am   #3
 
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N Rothschild started this thread im comparing the technical differences, not the theory of what gambling is
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Old Nov 13, 2009, 12:24am   #4
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Originally Posted by N Rothschild View Post
people often compare trading to gambling, they are not the same!

Except for some table games like blackjack the biggest difference between trading and gambling is that previous results have NO effect, unlike in trading.

for instance, on a roulette wheel..no matter what has happened in the past it has no physical effect on where the ball will land, it is always the same fixed odds. In trading previous results DO effect the outcome of the market.

Agreed. But we're never going to resolve the differences between trading and gambling when we don't have a widely accepted definition of what gambling on its own is.
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Old Nov 13, 2009, 12:26am   #5
 
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Agreed. But we're never going to resolve the differences between trading and gambling when we don't have a widely accepted definition of what gambling on its own is.
indeed, it mainly struck me last week when i was doing well at the casino and was still thinking up ways 2 the "beat" the wheel, when it dawned on me it cant be done!
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Old Nov 13, 2009, 12:32am   #6
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Except for some table games like blackjack the biggest difference between trading and gambling is that previous results have NO effect, unlike in trading.
What about horse racing ?


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Old Nov 13, 2009, 12:55am   #7
 
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In trading you're playing against people, in gambling you're playing against machines, balls, random cards, computer generated numbers, generally unknowable events.

Hence why casinos only host poker games.

Trading is about people and ultimately how much you are in control of yourself.
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Old Nov 13, 2009, 1:13am   #8
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but if you dont know what the outcome of an event will be, even if you have an edge, it is still gambling - just a good gamble
well in that case business is a gamble too you never know wht the outcome will be end of year, a recession might just po-up, and your bank stops lending you and you go bust. or some competitor might turn up and eat up all your margins and you re liquidated.

life is then a gamble too, you dont know the outcome of tomorrow

but in trading, chart patterns repeat themselves
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