FAQ Is Trading the Same as Gambling?

forker

Well-known member
Jul 12, 2008
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#61
Trading is not the same as gambling... a dumbass can make money gambling on a fluke, but to be a profitable trader long-term it's not a one- or two-time thing... you actually have to have a tested strategy and execute it well. In short, you gotta know what you're doing... Definitely this is much more serious than gambling.
A dumbass can just as easily make money trading from luck.. Your description of trading is no different than gambling. I think you're in denial
 
Sep 15, 2010
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#63
When you are trading stocks in long term it should not be a gambling:
1) You are investing in some stock cause you have estimated it is good stock and that company will have good progress in future.
2) Gambling is game with zero sum, which means that someone need to lose in order to someone to win. Investing in stocks is not like that. Everybody can win, company is working good, making a profit, so you are a satisfied stockholder.
3) If company generates profit you can expect dividend (dividend in stocks is topic for it self)

But 90% of people are not investing long term, everybody wants "quick money" and that is gambling.
 
Jun 30, 2011
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#64
not the way I do it. not even close...

Okay so we break a resistance level, and then we get a pullback to support. 9 out of 10 times it goes up from that point. With indicators, candles, timing and instincts you will be wary of that 1 in 10 times it does not work.

Gambling like in craps. You have no idea at all what that actual outcome of that next throw will be. Yes it most likely will be 7, but that's about it. That's when statistics play the main role.

So both are more likely to 'hit 7', but that's about it.

The key is to know your resistance and support levels, understand where retracement makes the most sense, use your indicators, follow the trend you are in and then look for that entry candle or crossing of indicators.
 
Jun 30, 2011
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#65
ps.

discipline
have a specific plan (i.e. 2 trades for one point each per day)
and work on the mental.
there will be loses, but you don't ever have to lose the day.
 

neil

Well-known member
Nov 19, 2001
5,169
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#66
Of course trading is like gambling: Bookies win.
Traders search for the grail from Vendors. Therefore Vendors win.
Like a racecourse the periphery of the actual racetrack/trade activity is surrounded by noise and hype; racecard markers/vendors/signal providers/guru's etc.
Successful traders? There are a few but they have worked hard at watching charts and markets; tried their hand at forecasting; managed stops (knowing what they could lose before commiting to the fray); managing money and information; patience and a good "bull****e"detector. Plus, a hard earned skill at sifting all kinds of information based on the theory that less=more.
:)
 

TJZ

Member
Sep 30, 2011
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#69
A dumbass can just as easily make money trading from luck.. Your description of trading is no different than gambling. I think you're in denial
Agree 100%. I was told recently about a gentleman who put £2000 in a spreadbet account and turned it in to nearly £200000 in a very short timeframe. This guy had never traded before and (if the story is true) obviously had a lot of luck weighted in his corner along with seriously huge stakes.

The scary thing is I also heard most of it has now gone back to the broker.......

:eek:
 

Club

Active member
Aug 3, 2010
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#70
Trading is gambling until you use a stop loss.

By palcing a stop loss on a chart you must have quantified your risk, decided when to get out if things go wrong and therefore had a plan.

The similarities are that for some people, they both rely on luck!
 
May 30, 2003
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#71
Fortunately for spread-betters the UK government sees trading as pure gambling from a tax perspective. George Osbourne expects that the house (spread-betting firms) will win a high percentage (>90%) of the time and, thu,s most punters would not have any profits to pay tax on.

Strange how they came to that conclusion so early on. Even stranger how it has turned out to be so true.
 
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TJZ

Member
Sep 30, 2011
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#73
Anything you put a stake on with less than 100% certainty is a form of gambling no matter how you look at it.