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; Yeh I agree. The 95% who fail are probably gambling. If and when you get an edge and into the ...

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Old Apr 30, 2017, 1:39pm   #436
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Yeh I agree. The 95% who fail are probably gambling. If and when you get an edge and into the 5% .
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Old Apr 30, 2017, 5:11pm   #437
 
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Originally Posted by foroom lluzers View Post
You start with 50/50 , deduct spread of broker , this brings edge to -2 , equals 49/51 in favour of forex casino operators.

When you trade without an edge it is gambling .If you searcg google , with following words , 95% of traders lose , the statistics confirm that it is gambling.

The calculated risks are :traders make mistakes and underperform , aa traders can not execute the 49% , so they underperform on real accounts , they have no edge , so it is gambling.
In the sense that you are using "gambling" yes I agree.
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Old May 4, 2017, 10:27pm   #438
 
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in so far as each trade goes it is a gamble. hence judging trades in isolation is fruitless, however in a portfolio context, trading a spread on fundamental value with the ability to hold your winners and losers (having a big enough book) summed up over thousands of trades will be net positive ev if the fundamental relationship of the spread you are trading holds.

now considering keeping cash is just being long your local currency, not trading, as a one off trade decision is a gamble too. trading with a portfolio approach or not trading at all, which looks like the bigger gamble?

Last edited by 888dan; May 5, 2017 at 6:09pm.
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Old May 7, 2017, 11:36am   #439
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Trading is gambling as almost everything in life is gambling; i.e. almost everything has an uncertain outcome. Life itself included.

The outcome of most activities in life can be modified by the application of skills / knowledge. But their outcome remains less than 100% certain.

The outcome of some activities cannot be modified by skills / knowledge, e.g. lottery, roulette.

Its a futile and never-ending argument whether trading is gambling or isn't gambling. Like most things, it both is and isn't.

But the fatal conclusion a newly successful trader can reach is "I am profitable, therefore I am not gambling, therefore there is no risk".
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Old May 7, 2017, 12:45pm   #440
 
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A gamble is something over which you have no control. Poker players understand probability as do options traders. Most directional trading is not managed and it is hard to quantify trailing stops etc.
But a shopkeeper is a gambler, a publican is a gambler as these are high risk businesses. Being a private landlord? You can lose a year's profits with one bad tenant-seen it so many times. So most trading is gambling as you have no control- with options you DO have an element of control. Trading forex is mostly a forlorn hope, I've never met a successful forex trader whose sole income was from forex.
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Old May 7, 2017, 12:51pm   #441
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Originally Posted by Windlesham1 View Post
A gamble is something over which you have no control. Poker players understand probability as do options traders. Most directional trading is not managed and it is hard to quantify trailing stops etc.
But a shopkeeper is a gambler, a publican is a gambler as these are high risk businesses. Being a private landlord? You can lose a year's profits with one bad tenant-seen it so many times. So most trading is gambling as you have no control- with options you DO have an element of control. Trading forex is mostly a forlorn hope, I've never met a successful forex trader whose sole income was from forex.
Options is gambling with time and probabilities.

Most of the forex trading is pure gambling on a forex roulette wheel.

Only serious trading is ,if you trade like Warren buffet .
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Old May 18, 2017, 12:51pm   #442
 
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trading is taken as gambling when you do not know what to do. Trading based on luck is like taking a shot in the dark and results are often similar as of gamblers. But with a well followed trading plan and proper risk management, trading is like a business. That’s the difference between those big percent of traders losing to some small percent of professional traders.
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Old Sep 25, 2017, 11:35am   #443
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It totally depends on an individual’s definition of “gambling”, it may be a “yes” or a “no”. As per the Oxford Dictionary “gamble(as a verb)” is “to play games of chance for money or bet” and “take risky action in the hope of a desired result”.

So if we go by the definition of the Oxford dictionary we may conclude that any kind of trading or speculation in the financial markets most definitely is gambling where there are no chances of ‘ifs’ and ‘buts’.
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Old Sep 27, 2017, 2:12pm   #444
 
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The major difference is the odds are in your favor in trading (if you trade with an edge to make money), compared to the odds are in the bookies favor in case of gambling or if you trade with no edge in the market...
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