FAQ Is Trading the Same as Gambling?

Trading and gambling are two different things. But you can be doing both things in the the financial markets. Gamblers can make a lot of money quickly but those trading properly probably won't. Good traders can make a living from it but generally their capital will grow slowly but surely. To make a lot of money very quickly you would need to 'gamble' and more often than not, these people tend to give back all or much of it if they haven't quit while they're ahead.

I wonder what's the point of this thread initially It's like, many men, many minds.

i dont class it anything like gambling apart from risking money. why it may seem so sometimes, its not a game of chance. Fact is the key to trading is risk management plus analysis of data, trends, history etc. You wont profit from every trade no matter how much data u process and analyze. You must have discipline to minimize your loses and maximize your profitable trades. I know its often tempting to move your stop-loss in the hope of it turning around and yes sometimes depending on upcoming data that might be okay but i see so many inexperienced traders open trades with no thought on placing a stop or take profit. If u properly analyse the data u must have some idea where the trade might end up, especially the point where u stop out.. A few grand in your account gets sucked up real fast when a couple of trades go pear shaped.

So my answer is it not gambling at all for me, but i do see how it really is gambling for many. Its a tough game to master and im no expert but i think the biggest hurdle u must overcome is natural mental process when u see your money disappearing before your eyes and act in desperation to stop it. take the time to analyse the data, set your stops taking your balance into account also. Trade what u can afford to lose or you will probably **** yourself.

You know, since I've first posted in this thread, I've been thinking about the exact differences. And tbh I can't say I got anywhere with my thoughts. The main point against "trading is gambling" is that trading is more controlled and conscious. However, recent events of Brexit has shown us how "controlled" trading is. I guess it's the amount of unpredictable factors involved that make trading so similar to gambling.

I don't think it can actually be the same although you are going to invest money from both ends. Trading is an action of where you can you are conscious to your investment.Even if you may never predict much of the outcome. While in gambling, it is more on pleasure takers. In my own opinion, gambling is always losing. You may stop for a while but later on you may take bigger risks that involves money.

Trading is an art of buying and selling with proper calculations and analytic however it may be turned into gambling when any trader stop using his analysis and instead they start depending on their luck.

SweetAnalyst said:

Trading is an action of where you can you are conscious to your investment.Even if you may never predict much of the outcome. While in gambling, it is more on pleasure takers.

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I don't really get what you mean here. How is trading conscious, yet at the same time you can never predict the outcome? And isn't it pleasant when you win with trading just as much as with gambling?

he means that professionals or serious traders analyse their trade decisions with data but some novices just make random decisions hoping theyll get lucky.

Markemarc said:

he means that professionals or serious traders analyse their trade decisions with data but some novices just make random decisions hoping theyll get lucky.

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Actually, I'd not consider this a matter of experience, rather like different types of traders: gamblers, analysts, dreamers, etc. And I guess each of these types have chance for success.

Not so likely

Gambling is risking the money in favor of possible outcome, trading is strategically good and you can know the risk and how much you can get, don't mix these terms,if you are good at stock market forecast and prediction money follows you

globalmarketastro said:

Gambling is risking the money in favor of possible outcome, trading is strategically good and you can know the risk and how much you can get, don't mix these terms,if you are good at stock market forecast and prediction money follows you

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What would you say about people good at gambling then? I'm sure they'd call their business strategic and risk-managable.

some ppl do treat trading like gambling... not me. there is risk but calculated risk sir

june_girl7 said:

Successful traders and gamblers are typically highly skilled and spend years becoming proficient. All it depends on how you manage trading, if you take it as a gambling of money then you will going to loss so much over here.

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Okay, most traders say you shouldn't take trading as gambling, that's good and all. But how should you take it then? As a game? As a job? As a hobby?

zaysev36 said:

Okay, most traders say you shouldn't take trading as gambling, that's good and all. But how should you take it then? As a game? As a job? As a hobby?

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how do you want to treat it ? .........

june_girl7 said:

Successful traders and gamblers are typically highly skilled and spend years becoming proficient. All it depends on how you manage trading, if you take it as a gambling of money then you will going to loss so much over here.

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10000% agree............the same as any activity that is seeking to generate more income than costs.........and like any business ......

so talking about trading vs gambling is like discussing whether to call a new restaurant a Bistro or a Café ........its semantics ..........if its run well then it makes money no matter what its called :smart:

N

zaysev36 said:

Okay, most traders say you shouldn't take trading as gambling, that's good and all. But how should you take it then? As a game? As a job? As a hobby?

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If you have developed a well-defined trading strategy and you have verified that strategy with careful backtesting, then it isn't gambling. It is exploiting an edge.

Nothing in life has a certain outcome. Some outcomes are more advantageous than others. Participation always involves risk of loss. Therefore everything in life is a gamble.

NVP said:

how do you want to treat it ? .........

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Me? Like a hobby that provides me with everything I need

zaysev36 said:

Me? Like a hobby that provides me with everything I need

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Good for you.......but never confuse hobbies with business.....it will less to tears....

NVP said:

Good for you.......but never confuse hobbies with business.....it will less to tears....

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What's the difference? If it brings profit, why would I care about the exact definition?