The definition of gambling:
1. Money that is risked for possible monetary gain
2. Take a risk in the hope of a favorable outcome.
Do those two statements define most of your trading activity? Just as somebody would study sport as a hobby and back their views, are traders not just learning about and studying the markets and ''taking a risk in the hope of a favorable outcome''
However we access the markets, whatever we trade or buy we are all taking ''risk in the hope of possible monetary gain''
I know a guy whose life has gone downhill since he secretly started gambling heavily on the horses and football - he nearly lost his shirt. I bet there are just as many stories of people loosing all their money, wife, car, sanity etc... 'gambling' on the markets.
Trading is without doubt a more intellectually challenging and sophisticated form of gambling - people who do it full time are really just informed gamblers.
This is how I see it
When you start trading every decision is like spinning a roulette wheel with all 36 numbers present as you spin. As you gain more knowledge, discipline and skill - those numbers start to whittle away giving you more chance of being successful.
Is this any different to analyzing premiership football and making your money there? I know it is all very impressive explaining to people your a trader but I wonder if we would get such a positive reaction introducing ourselves as professional gamblers at dinner party's??
What make TA or fundamental analysis any different to studying form when betting on horses????
What do you guy's think?
JK
Great question and one I ponder everyday for the last 25 years !!!
Some days I'm a gambler..some days I'm a trader ....depends on my mindset
By the way gambler is a derogatory term I'm guessing here ???
And yet my father and grandfather were professional gamblers and made a lot of money over the years
Semantics
It's all about "edge" .....that most elusive of things.....that small percentage tipped in your favour
A gambler has no edge..in fact many have negative edges .....devisive...destructive
They just ...gamble....
A professional (trader/ gambler)
Has a proven edge ...and applies with a ruthless efficient discipline......brutal
The proofs in the results ......
Do you have a proven consistent edge in the market ?
If yes.....you are a true trader
If no ...you are gambling
Most of us are trainee traders...seeking that edge ......no problem with that ...few make it
Just don't pretend you're a trader until you are .......
N
