Is Trading the Same as Gambling?

This is a discussion on Is Trading the Same as Gambling? within the New to Trade2Win forums, part of the Reception category; Originally Posted by Christiaan That means all things being equal you can say that everytime he enter a trade he ...

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Old Jan 9, 2011, 1:23pm   #17
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Re: Is Trading the Same as Gambling?

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Originally Posted by Christiaan View Post
That means all things being equal you can say that everytime he enter a trade he has a 80% chance of making money.I think your odds with gambling should be about 50/50.
The question is how much money he makes when he wins, not how often he wins.
Consider a gambler who covers 35 numbers on roulette. Everytime he enters a game he has a 94.5% chance of making money. Does it make him a successful gambler?
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Old Jan 9, 2011, 1:54pm   #18
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Re: Is Trading the Same as Gambling?

yes ofcourse the risk/reward ratio is important as well.Keeping with my prevois example this trader biggest loser is as big as his biggest winner.With a risk/reward ratio of 1/1 and a 80% winning rate he is still better off than any gambler.

You cannot compare the two.Your success in the market depens on your tecnical abilties,sound money mangement and true discipline.How is that the same as counting cards,throwing little dices or bluffing your way to victory.It's flat out riduculous more ridiculous than my spelling and grammer.
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Old Jan 9, 2011, 2:50pm   #19
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Re: Is Trading the Same as Gambling?

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Originally Posted by Christiaan View Post
yes ofcourse the risk/reward ratio is important as well.Keeping with my prevois example this trader biggest loser is as big as his biggest winner.With a risk/reward ratio of 1/1 and a 80% winning rate he is still better off than any gambler.

You cannot compare the two.Your success in the market depens on your tecnical abilties,sound money mangement and true discipline.How is that the same as counting cards,throwing little dices or bluffing your way to victory.It's flat out riduculous more ridiculous than my spelling and grammer.
That is absolutely right. But you are speaking of a very small minority. The rest, the majority, are gambling in the hope that, one day, they will attain the criteria that you describe. In the meantime, they are losing money to the market. I, as a retired person, can see very well that I have been well rewarded by a pensionable job and those who believe, when they are very young, that they can invest their time and money in this type of activity will be, except for a minority, sadly disillusioned.

The time spent on this should be given minority time. The majority of the time should be allotted to getting ahead in life. Remember the tortoise and the hare.

I know that resident posters will come on here and protest at my remarks, that they are successfull at what they do. For all that they teach on their threads, though, the majority of their readers do not make it and leave the thread disappointed.
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Old Jan 9, 2011, 2:52pm   #20
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Trading and gambling differ only by edge. Everything else is the same.. Just to make it clear I am not talking about roulette or the machines.. There is no strategy in them.. Poker on the other hand and black jack is no different
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Old Jan 9, 2011, 2:56pm   #21
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Re: Is Trading the Same as Gambling?

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Poker on the other hand and black jack is no different
No different from trading? Then trading is gambling.
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Old Jan 9, 2011, 3:26pm   #22
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Re: Is Trading the Same as Gambling?

Except with trading you are in complete control.You decide when and where you enter and exit a trade.We all get the exact same market it is only our approach to the market that differs.

With poker there is a great deal of luck involved.You cannot control the cards you or any of the other players get.With trading everybody get's the same price.Although there may be one or two games of luck that requires a drop of skill trading requires far greater skill.And that is only on the tecnical side.You also need true disicpline.

Obvoisly black jack and poker is nothing like trading.

I know my english is terrible.But english is my third language
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Old Jan 9, 2011, 5:03pm   #23
 
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Re: Is Trading the Same as Gambling?

Christiaan, as I see it, your English is better than many who hold a British passport and enjoyed a British education... but your understanding of trading, poker and gambling as concepts is wrong.
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Old Jan 9, 2011, 5:11pm   #24
 
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Re: Is Trading the Same as Gambling?

If you go long an outright position - you are buying with the hope that someone else will buy it back off you at a higher price later on.

Isn't this the greater fool theory. You hope a greater fool will pay that higher price later on...

Value really has very little to do with price. Supply & demand does but then that's driven by people just like you, looking for the greater fool.

I certainly think it's a form of gambling but this could really just end up a semantical argument where people bash each other over the head with dictionaries.

I think the dicsussion here was a good one... http://www.trade2win.com/boards/gene...-sum-game.html
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