FAQ Is Trading the Same as Gambling?

6am

Active member
Nov 16, 2010
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#17
That means all things being equal you can say that everytime he enter a trade he has a 80% chance of making money.I think your odds with gambling should be about 50/50.
The question is how much money he makes when he wins, not how often he wins.
Consider a gambler who covers 35 numbers on roulette. Everytime he enters a game he has a 94.5% chance of making money. Does it make him a successful gambler?
 

Christiaan

Active member
Feb 19, 2009
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#18
yes ofcourse the risk/reward ratio is important as well.Keeping with my prevois example this trader biggest loser is as big as his biggest winner.With a risk/reward ratio of 1/1 and a 80% winning rate he is still better off than any gambler.

You cannot compare the two.Your success in the market depens on your tecnical abilties,sound money mangement and true discipline.How is that the same as counting cards,throwing little dices or bluffing your way to victory.It's flat out riduculous more ridiculous than my spelling and grammer.
 

Splitlink

Well-known member
Nov 18, 2001
10,850
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#19
yes ofcourse the risk/reward ratio is important as well.Keeping with my prevois example this trader biggest loser is as big as his biggest winner.With a risk/reward ratio of 1/1 and a 80% winning rate he is still better off than any gambler.

You cannot compare the two.Your success in the market depens on your tecnical abilties,sound money mangement and true discipline.How is that the same as counting cards,throwing little dices or bluffing your way to victory.It's flat out riduculous more ridiculous than my spelling and grammer.
That is absolutely right. But you are speaking of a very small minority. The rest, the majority, are gambling in the hope that, one day, they will attain the criteria that you describe. In the meantime, they are losing money to the market. I, as a retired person, can see very well that I have been well rewarded by a pensionable job and those who believe, when they are very young, that they can invest their time and money in this type of activity will be, except for a minority, sadly disillusioned.

The time spent on this should be given minority time. The majority of the time should be allotted to getting ahead in life. Remember the tortoise and the hare.

I know that resident posters will come on here and protest at my remarks, that they are successfull at what they do. For all that they teach on their threads, though, the majority of their readers do not make it and leave the thread disappointed.
 

forker

Well-known member
Jul 12, 2008
2,688
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#20
Trading and gambling differ only by edge. Everything else is the same.. Just to make it clear I am not talking about roulette or the machines.. There is no strategy in them.. Poker on the other hand and black jack is no different
 

Christiaan

Active member
Feb 19, 2009
227
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#22
Except with trading you are in complete control.You decide when and where you enter and exit a trade.We all get the exact same market it is only our approach to the market that differs.

With poker there is a great deal of luck involved.You cannot control the cards you or any of the other players get.With trading everybody get's the same price.Although there may be one or two games of luck that requires a drop of skill trading requires far greater skill.And that is only on the tecnical side.You also need true disicpline.

Obvoisly black jack and poker is nothing like trading.

I know my english is terrible.But english is my third language
 

DionysusToast

Well-known member
Dec 6, 2009
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www.jigsawtrading.com
#24
If you go long an outright position - you are buying with the hope that someone else will buy it back off you at a higher price later on.

Isn't this the greater fool theory. You hope a greater fool will pay that higher price later on...

Value really has very little to do with price. Supply & demand does but then that's driven by people just like you, looking for the greater fool.

I certainly think it's a form of gambling but this could really just end up a semantical argument where people bash each other over the head with dictionaries.

I think the dicsussion here was a good one... http://www.trade2win.com/boards/general-trading-chat/85318-wall-street-casino-minus-sum-game.html
 

Christiaan

Active member
Feb 19, 2009
227
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#25
I do not think it matters at the end of the day.If i make money at the end of the day i'm either a sucessfull gambler or a sucessfull speculator.Does not change my account balance
 

shadowninja

Well-known member
Jul 22, 2007
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www.helpforheroes.org.uk
#26
I do not think it matters at the end of the day.If i make money at the end of the day i'm either a sucessfull gambler or a sucessfull speculator.Does not change my account balance
Of course. I'm not criticising your trading ability. We're just arguing semantics and whether anyone thinks poker players, traders or "investors" are degenerate gamblers or not is irrelevant. :)
 

forker

Well-known member
Jul 12, 2008
2,688
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#27
It's a personal thing.. If you're a religious person you're everything but a gambler... As for me, I am 100% pure gambler..
 

HowardCohodas

Well-known member
Sep 29, 2010
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#30
The house always has the edge in Blackjack. The house does not have the edge in poker or trading if you know what you're doing.

It is all still gambling by definition of the word "gambling".
Not since the early 1960s when Dr. Thorp wrote "Beat the Dealer." He eventually went on to make his fortune in trading.