Gambler, Trader, Speculator or Investor

tomorton

Legendary member
7,563 1,035
The odd one out is the Investor, because he/she does not place their principal at risk.

The others are all the same. We could add the venerable term Stock Operator but nobody uses that any more.
 

Splitlink

Legendary member
10,850 1,232
But is a trader or speculator a gambler if he calculates correctly on a regular basis?

I've always considered life, in general, to be a gamble, albeit a carefully calculated one. Practically every decision one takes has its element of risk and it's only afterwards, when it is over, for better or worse, that one realises the chances involved.

"If"

What an important word that is!
 

Splitlink

Legendary member
10,850 1,232
im going to take a huge risk when eurusd hits 1.45
All in a day's work, mate! :D

BTW, you said "when" and not "if". That means that you are not gambling. With that opinion of it, I hope that you are long. If not, why not?
 
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shadowninja

Legendary member
5,524 643
Why is he not gambling if he definitely takes a trade?

In any case, do you mean smokey bookmaker and beer gambling or professional gambling?
 

Splitlink

Legendary member
10,850 1,232
Why is he not gambling if he definitely takes a trade?

In any case, do you mean smokey bookmaker and beer gambling or professional gambling?
He's not gambling if he says "when it gets to 1.45", only if he says "if it gets there".

Professional gambling sounds posher.
 

shadowninja

Legendary member
5,524 643
He's not gambling if he says "when it gets to 1.45", only if he says "if it gets there".
Why? Is it a guaranteed win? Define "gambling". It can mean two things.

Roulette, trading, horses, Poker, Blackjack, football, Lotto: which ones are definitely "gambling" and which are "professional gambling"? Which of them is it possible to earn a living from and which will you lose over the long run? And why?

I think people get confused between professional gambling and gambling.
 
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shadowninja

Legendary member
5,524 643
In fact, if you're bored right now, go play Roulette with free credits. You will learn a lot about trading.
 

Chartsy

Experienced member
1,129 82
yes i am long eurusd
 

Splitlink

Legendary member
10,850 1,232
funny enough i immediately knew me saying 'when' over 'if' would be taken the wrong way
Why? How, wrong?

You said "when" which means that there is certainty in your thinking, that it's, simply, a matter of time. Lots are "iffers".
 

timsk

Legendary member
7,122 1,898
Why? Is it a guaranteed win? Define "gambling". It can mean two things.

Roulette, trading, horses, Poker, Blackjack, football, Lotto: which ones are definitely "gambling" and which are "professional gambling"? Which of them is it possible to earn a living from and which will you lose over the long run? And why?

I think people get confused between professional gambling and gambling.
Shadowninja makes an important point that often gets overlooked when the trading / gambling issue is discussed. I define gambling as a game of chance in which there is no mathematical possibility of a positive expectancy in the long term. If you win (in the short term), it's entirely down to lady luck and not your edge - as it's impossible to have one. The odds always favour the house (bookie of casino). Roulette is a good example of this. You might win in the short term (i.e. one night or one week) but, in the long term, you will lose. Guaranteed.

Poker is quite different as you can have a positive expectancy and you can, potentially, win over the long haul having developed an edge. Although luck and chance may play their part at times, poker is largely a game of skill which some 'gamblers' master. Trading is in the same category as poker, hence it is possible to be consistently profitable in the long term.

In spite of these key differences, there are of course those that do not realise it and do not treat them differently. They take wild, ill considered trades that are akin to betting on red of the roulette wheel. These people are just as much gamblers as the person who plays roulette.

A great site about gambling if you've not seen it before:
Wizard of Odds
Tim.
 
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shadowninja

Legendary member
5,524 643
Amusingly, people like to use the term "investing" to make it sound clever and like they accept there's a risk but the reality is they have big pound signs in their eyes and they're ignoring the potential downside thinking that it will never happen.
 

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