FAQ Is Trading the Same as Gambling?

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tomorton

Legendary member
8,239 1,267
What is your definition of Gambling?
Because it is universally accepted as being ...
"gambling"
1. play games of chance for money; bet.
2. take risky action in the hope of a desired result.

How is it more than one single thing?

Trading is a subset of gambling.
View attachment 295352

There are to broad types of gambling. Both types have uncertain outcomes but the player can affect the outcome of one whilst not being able to affect the outcome of the other.

Type A gambling - Roulette is a game in which the player cannot affect the basic outcome of their bet or game - the ball lands in a slot which it is impossible to predict and impossible to influence. The lottery follows the same rules: the ticket buyer cannot affect which numbers are drawn. The basic outcome is random: the player cannot use any skill or knowledge to affect the outcome.

Type B gambling - Card games and betting on sports events are different for the key reason that the player can use their skill or knowledge to affect the outcome of their bet or game. An experienced blackjack player will be able to increase their level of success over a novice. This might only be through card counting but that is a technique that the player brings to the game and which de-randomises the outcome. The casinos recognise this is possible and they ban it. Similarly with sports betting: the experienced and knowledgeable player will bet on Manchester United winning at home and not their opponents Burscough FC. The outcome of the game or the bet on the outcome is not completely random.

Therefore the original question, "Is trading the same as gambling?" is invalid as gambling is undefined. I do believe trading is a type of gambling, but Type B, not Type A. Its is more like sports betting than roulette. But the question is not answerable in a single Yes/No format.

A more interesting question might be, for example, "What human endeavour is NOT gambling?"
 
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TRADEMYSTYLE

Junior member
14 1
Trading is gambling only for those who think of the forex market as a get-rich-quick scheme. If you genuinely want to earn consistent profits, you must understand the fact that you can’t be rich overnight in this market. You have to work hard for that.
 

Upgradzz

Junior member
17 1
Trading is not at all similar to gambling, trading involves fundamental and technical analysis of the market to place trades while gambling is nothing more than luck.
 

BigDeal

Member
70 29
Trading is not at all similar to gambling, trading involves fundamental and technical analysis of the market to place trades while gambling is nothing more than luck.

So where do you believe poker playing sits? What about those who study and bet on horse racing?
 
 
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