FAQ Is Trading the Same as Gambling?

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Guest36985

0 0
there is a clear distinction between gambling and trading and in simple terms, real traders who long or short the market make money by analysing the market indices with their graphs on trading view. before they take a decison they have analysed the market and they know where the support and resistance of each commodity lies. however on the other hand there are some so called traders who have no indepth knowledge of trading analysis but they just see some notifications on twitter or the alerts of whales longing or shorting the markets and they just base ther trades on that. hence that is what is called gambling as you are just throwing money away
Support and resistance lines are voodoo they don't exist in the real world. Price is determined by factors which constantly vary. If one of the bombs dropped by the Russians today had malfunctioned and hit the British warship it was dropped near to, none of your phantasy support lines would have held, the market would have plummeted.

Every time you open a trade you gamble that one of the millions of idiots in the world doesn't do something really stupid before you close it. There are too many factors beyond your control to make it anything other than gambling.

"Reuters noted the Su-24 dropped "four high explosive fragmentation bombs as a warning in the British destroyer's path."


PS: Welcome to T2W 😉
 

AnySpringer

Newbie
3 1
Hmm, controversial question. I think not. Trading institutions don't have an advantage over you. Every time you buy a stock, someone sells it to you. Every time you sell (or short) a stock, someone buys it from you. In gambling, no matter how successful you are there, the gambling house always holds the edge of advantage in its favor. You have to figure out for yourself whether you are gambling or trading. If you realize that you are really gambling, think maybe you should stop and protect yourself from losing all your money. I have had one gambling game in my life- iNasports88 . I understand that it's gambling, but I can't stop.
 
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Parky

Well-known member
260 32
No. In so far as gambling for a living is far and few between, 99.9 percent of gambling is for fun and a liesure activity. Trading much less so. The man point is this, anyone who thinks they can earn a living without paying tax is deluding themsleves. If your main source of income is trading, or gambling, then you have to pay tax.
 
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WalletInvestor

Active member
114 30
Hmm, controversial question. I think not. Trading institutions don't have an advantage over you. Every time you buy a stock, someone sells it to you. Every time you sell (or short) a stock, someone buys it from you. In gambling, no matter how successful you are there, the gambling house always holds the edge of advantage in its favor. You have to figure out for yourself whether you are gambling or trading. If you realize that you are really gambling, think maybe you should stop and protect yourself from losing all your money. I have had one gambling game in my life- iNasports88 . I understand that it's gambling, but I can't stop.
This is a very good point of comparison between trading and gambling. In trading, if you have a proper regulated broker, the broker doesn't benefit from your losses. By the way, this is why binary options are problematic, because binary options brokers often do benefit from you losing.
 

Parky

Well-known member
260 32
Spot on WalletInvestor. FCA regulated brokers will only ever charge a pre agreed commission, they are obligated to give you a best price.
 
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sebking1986

Active member
195 65
In as much as there is some risk - yes. Is it like flipping a coin? No. The point of learning to trade is to stack the odds in your favour and take calculated risks.
 

WalletInvestor

Active member
114 30
In as much as there is some risk - yes. Is it like flipping a coin? No. The point of learning to trade is to stack the odds in your favour and take calculated risks.
This is a really good and concise explanation. The point of trading is that the chances of winning are not just accidental, you have a way to affect the odds.
 

rochellcurtin

Junior member
20 3
While gamblers trade with thoughts in dreams, traders make calculated and methodological trades. The only purpose of gamblers is to make quick money entirely based on speculations, whereas traders focus on research and analysis. They make rational decisions to increase the probability of winning and bring down the odds in their support.
 

Jungletrader

Member
80 12
Some treat it the same unfortunately.
In trading we stick to proper money management and good RR .
Gamblers generally use the money at hand with sometimes little or no analysis on their sport
 

marthasanders

Junior member
19 0
Unfortunately, I have met many people who believe that trading and gambling are the same. But actually it's not. You don’t need any market analysis, daily updates regarding information and news, or understanding of market movement in gambling, but you need all these and pretty much more to do trading. It's a hard-core professional thing.
 

ridgeback

Junior member
23 10
It's irrelevant what you call yourself, you are either making money or losing money.
We "gamble" at everything we do on a daily basis; the edge is being conscious of it most of the time.
Sadly most people are sleepwalkers.
Who cares if you are a gambler or a trader or you are the same thing?
 
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Henow1969

Well-known member
303 37
Forex trading is not gambling nor a casino but it is an online business and we can make good money if we have good knowledge of it.
 

Eugene Kruglei

Junior member
17 4
Gambing and trading are only similar in the sense that “speculation” is involved in both. Else, they are completely different.
Rationality and reason are prerequisites for forex trading. Traders perform fundamental and technical analysis for long term profitability, whereas gambling is like a one time jackpot, where gamblers play with odds instead of stacking them strategically in their favor.
 
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