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; Black jack...that is ****** riduculous .Trading is not anything like games of chance at all.If i can make money consistenly ...

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Old Jan 10, 2011, 7:25am   #33
Joined Feb 2009
Re: Is Trading the Same as Gambling?

Black jack...that is ****** riduculous .Trading is not anything like games of chance at all.If i can make money consistenly by gambling i would.Way more fun
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Old Jan 10, 2011, 7:45am   #34
 
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Re: Is Trading the Same as Gambling?

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Originally Posted by shadowninja View Post
The house always has the edge in Blackjack. The house does not have the edge in poker or trading if you know what you're doing.

It is all still gambling by definition of the word "gambling".
Well - actually you should say... "The house always had the edge in Blackjack, if you don't count the cards, in which case you get thrown out of the casino."

I remember picking up my winnings at the Bookmakers in the High St, Alton Hants. I remember the bookies words as clear as if they were yesterday. "Well done, don't come back".

That's an edge you can't beat.
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Old Jan 10, 2011, 11:12am   #35
 
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Re: Is Trading the Same as Gambling?

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Originally Posted by Masquerade View Post
That's rubbish. You can't demonstrate the probability for taking a trade at price x and the % chance it will succeed. I on the other hand can demonstrate the probability you will win/lose/tie in blackjack. For many people they're better off playing blackjack.
With blackjack you can work out your exact edge using mathematics
With trading you rely on historic statistics
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Old Jan 10, 2011, 11:46am   #36
 
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Re: Is Trading the Same as Gambling?

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Originally Posted by Emini-mouse View Post
With blackjack you can work out your exact edge using mathematics
With trading you rely on historic statistics
So what you're saying is that you have no idea of the probability that a market will move in a given direction at a specified time?

Tell me....using your historic statistics of 2000-2006 of eur/usd, how would that have served you in the period of 2007-current? Chances are you'd have lost most, if not all basing your trades on those statistics. If you want to rely on historic statistics go study the horse form guide or analyse sports and bet on it.
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Old Jan 10, 2011, 12:00pm   #37
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Re: Is Trading the Same as Gambling?

I say that I might think that I have an idea, but the reality can be quite different.

Blackjack aside, I have thought about horses, although, I do nothing except the lottery outside of trading.

I think that a risk/reward ratio of 1:1 or 2:1 has a much better chance of success when trading any 2:1 bet on a horse but, of course, 20:1 on a horse is more likely than any 20:1 on a trade.

Does that mean that 1:1 or 2:1 ratios are the best way to go when trading?
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Old Jan 10, 2011, 12:09pm   #38
 
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Re: Is Trading the Same as Gambling?

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Originally Posted by Emini-mouse View Post
sorry im confused if you are agreeing or disagreeing
If you rely on historic statistics they are only as valid till they're not. Hence in trading if you relied on historic statistics to base your decisions on you'd be gravely mistaken and would be better off applying it to something with less variables such as sports. You only have to look at what happened to the markets between 2007-current and can appreciate how some person who'd programmed the market stats from 2000-2006 would have got severely burnt.
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Old Jan 10, 2011, 12:13pm   #39
 
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Re: Is Trading the Same as Gambling?

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Originally Posted by Splitlink View Post
I think that a risk/reward ratio of 1:1 or 2:1 has a much better chance of success when trading any 2:1 bet on a horse but, of course, 20:1 on a horse is more likely than any 20:1 on a trade.

Does that mean that 1:1 or 2:1 ratios are the best way to go when trading?
Your risk/reward is not the odds of the event occurring.

A horse that is 20-1 has a 5% chance of winning the race (assuming the bookmaker is efficiently priced.) A trade where you risk 1 to make 20 does not have a 5% chance of success. How you conclude that 20:1 on a horse is more likely than 20:1 on a trade perplexes me.
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Old Jan 12, 2011, 11:19am   #40
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Re: Is Trading the Same as Gambling?

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Originally Posted by Christiaan View Post
nope trading the market takes skill and most important true disicipilne.The failure rate is incredible high because it's a tough business.

There is a word for it it is called speculation where you use a strategy to take high propablity trades.Gambling is way more fun than sitting in front of your screen for hours carefully choosing your trades using indicators based on math.Consider a sucessfull trader that let's say for example sake has a winning rate of 80%.

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.

There is no game of chance that even slighty resembles trading.So my opion it is not gambling it is speculation and we are speculators.

I know my english is terrible but it is my third language
Poker is gambling but i has a skill element.
Trading is gambling by the same factor.

Anything involving money on an uncertain outcome is gambling but you shouldn;t have an issue with that. The real question is more about society's perception of gambling vs what you do to make money.
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