Is Trading the Same as Gambling?

Trading is the same as gambling with an edge. Do you define the owner of a casino as a gambler, or a bookie at a race track? Usually these people are defined as businesses. A trader needs to trade as a business.

Unless you are spreadbetting then you are gambling. If you wish to call yourself a trader then fine but please be aware you could face a tax bill. For me.....I'm simply a lucky gambler. Thats all.

Nionsense - why in your book is trading using a spreadbetting platform considered gam bling and using other platforms not?

Because its a legal definition. If I make a profit "gambling" on a spread betting platform, its currently considered to be gambling, and not subject to income tax. If the authorities are happy to describe the activity as gambling, then you really don't want to be arguing otherwise. You want to be insisting that its "gambling"

If I make a profit by "trading" on a broker platform, the inland revenue will be wanting their cut.

The same activity is considered to be 2 completely different things from a taxation perspective, and therefore if you are placing trades via a spread betting company, you really should be accepting that you are gambling. I think the clue is in the name, spread BETTING. I assume they also come under the same regulatory bodies responsible for the regulation of bookmakers (I don't know, I don't spread bet )

It's all gambling anyway, I don't see the distinction.

Spreadbetting can be gambling - as can be trading o0n a broker platyfoirm.

In a nutshell my definition of a gambler is someoen who bets and has a netatiove expectancy over the long run. Your typical guy in the bookies would fit this definition - the bookie homself would not.

Same applies to peopel who trade - any one who trades aimlessly with no strategy will undoubtedly lose their money over teh long run.

A trader with a positive edge system will not - and therefore nota gambler.

As to whetehr they aooly their positive edge startegy via a spreadbetting firm or a broker platform is neither here nor there. It can be done successfully on both -as can gambling be done on both.

Obviously I am happy for tax reasons spreadbetting is technically considered 'gambling' - but your post suggested that if someone trades using a soreadbetting firmn the nthey are more likely to lose than if they trade using a brokers platform.

Perhaps I misunderstood your post though.

I'm sure many people would argue that's the case. I've traded with a spread betting company and lost money, but that was 10 years ago, and I didn't know my **** from my elbow, and would have lost money wherever I was trading

Im sure that there are people who do trade successfully with spread betting companies.

I know a few people involved in gaming, who lost considerable amounts of money despite their platforms having a positive expectancy for the house, and to that end I personally consider both sides to be gambling ! although I know where you are coming from

I find it helps me to manage the process by thinking of what I do as gambling, I'm sure it helps others to take the opposite view. It's a mental crutch, but useful.

From what I understand, Lee's position on this is that classifying his activities as gambling keeps things simple from a regulatory and taxation perspective. The moment you cross the line and insist you are "trading" life gets a lot more complex and stressful.

Trading and gambling are different points on a risk spectrum that ranges from crossing the road to playing Russian roulette, and they actually aren't that far apart from one another. All trading (and I mean all) has some degree of uncertainty and so some element of open risk or 'gamble'. There are differences in terms of preparation, risk controls and so on but let's not kid ourselves; no one can 100% know the future outcome of any event whether that is a footie match or a stock. All this guff about 'edge' is self-important code for having thought something through and managing to find a way not to blow yourself up!

spot on, like you say the "edge" is just another word for

"preparation" "hard work" "experience"

or "inside information" ;-] nice if you can get it...