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 Windlesham1 A gamble is something over which you have no control. Poker players understand probability as do ...

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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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My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Oct 11, 2017, 2:46pm   #445
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Originally Posted by T2W Bot View Post
SHORT ANSWER

The very short answer . . .
Maybe yes, maybe no; it very much depends on your definition of gambling and whether or not you have an 'edge'.

The official view
The definition of ‘gamble’ in the Oxford Dictionary of English (2nd edition, revised) is:
Verb [no obj.]
1. play games of chance for money; bet: he gambles on football.
[with obj.] bet (a sum of money): they gambled their money on cards.
2. take risky action in the hope of a desired result: he was gambling on the success of his satellite TV channel.
Noun [usu. in sing.]
1. an act of gambling.
2. a risky action undertaken with the hope of success: we decided to take a gamble and offer him a place on our staff.

Clearly, according to the dictionary, any kind of trading or speculation in the financial markets most definitely is gambling. No ifs, no buts. However, based on this broad definition, walking down a flight of stairs or crossing a road could also be thought of as gambling. In fact, one could argue that living is gambling, as a great deal of our daily lives involves taking some ‘risky action in the hope of a desired result’.

Two extremes
At one extreme, many people would not consider crossing a road as gambling. Most of us achieve the desired result – i.e. reaching the other side – safely, every time. However, it involves some risk and a few unfortunate souls have accidents, sometimes fatal ones. At the other extreme, most people would consider betting on the result of the 3.30pm at Chepstow as gambling, as the desired result of your horse winning the race can’t be achieved with any degree of certainty. So, this begs two questions. Firstly, where is the dividing line between ‘not gambling’ when crossing the road and ‘gambling’ when betting on the gee-gees? Secondly, and more importantly, which side of this dividing line does trading fall on and why? These questions - and more - will be addressed in the Long Answer . . .


Well I don't think that it is gambling at all.

If you are infrequently or worst frequently going all-in on a certain bet so this is a obvious sign that from a savvy investor, you are crossing the line & sort of a gambler.
If you overtrading, using credit for trading above & beyond margin, engaging with the market, having kind of erratic mood rolls etc this shows you are becoming a gambler.
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