Quote from Acs:
Ask anyone with any trading knowledge, and tell them you made 1200% in a week and they will call it gambling without any question.
Its ridiculous to even justify this.
Another idiotic comment from
Acs, your credibility is completely shot as far as I'm concerned!
Anyone with an ounce of intelligence or trading savvy would need to know the details first, but not you, you just shoot in the dark and repeat the same thing over and over, you can't even support your opinion with reasoned argument or logic.
Let's have a look at the definition of the word 'gamble':
1. (2) gamble, chance, risk, hazard, take chances, adventure, run a risk, take a chance -- (take a risk in the hope of a favorable outcome; "When you buy these stocks you are gambling")
2. gamble -- (play games for money)
It could be argued we are
all gamblers but that's another debate, I'll assume you're using the term in a derogatory way.
There are smart gamblers and there are suckers or mug punters. A sucker relies on luck and a hope and a prayer. He hasn't analysed the statistical probabilities of winning overall, he just has a punt and hopes he wins. A smart gambler on the other hand makes sure he has an edge and that the probabilities of winning overall are in his favor. He doesn't rely on the outcome of one bet but instead looks to make money on a series of bets, overall he looks to be profitable regardless of the outcome of one individual bet. He manages his money and limits his risk while at the same time maximising his reward. He develops the discipline necessary to follow his strategy and avoid impulse or revenge betting. In essence that is trading.
Now let's look at the 1200% returns that you say were gambling (in the derogatory sense).
113 trades
110 wins
3 losses
A win rate of 97% over 113 trades
Risk:reward on average greater than 1:4
Maximum Risk per trade 5%
Probability of winning overall was clear.
Risk was limited, reward was maximized.
Money management was more than acceptable.
Now you explain to me, if you can, how that is gambling in the sense you mean it. You can't.
Can gains like that be sustained in the long term? Theoretically yes, practically no, for all sorts of reasons but nothing to do with whether it's gambling or not.
Would anyone advise a novice to trade that way? Well of course not, they're a novice!
