Do You Think Trading is Gambling?

[ElCubano]

Pitt -5 is not gambling pitt -8 is....:eek:

 

[trader_david]

never thought trading is a gambling activity.

trading is a business activity.

you need enough capital, skills of market timing/money mangement/risk management/cash flow efficiency, well-carried trading plan, experience, objective mental status, dsicipline, persistence, confidence, time.


the aim of this activity is to create profit or produce cash flow! not for fun or entainment.

if your purpose is for entainment, I would say that is gambling for sure!

 

[Mr J]

Quote from Jachyra:

Well you've clearly demonstrated that you don't understand the meaning of the word gambling...

I find it completely baffling that there are so many people out there who not only think trading is gambling, but also continue to trade despite their convictions.

I find it amusing that you jump on someone by suggesting that they don't know the definition, when you yourself do not know it. By definition, gambling is when one places a stake on an event with an uncertain outcome. That is it.

As for your second part, you seem to be under the impression that gambling cannot involve postive expectation. Well, you'd be wrong. Those who are successful and recognise that trading is gambling, continue to trade because they have a positive expectation.

This entire argument comes down to the fact that the majority of people don't understand the definition of 'gambling', which is understandable considering they will just assume the popular definition to be correct.

Quote from ElCubano:

Pitt -5 is not gambling pitt -8 is....:eek:

Both are, but holding -8 when -5 was available at some point proves it to be a horrible bet.

 

[JSSPMK]

Firstly I don't know everything, but neither do you.

Secondly, I have already blown an account in the past.

So what wouldn't you call gambling? An example please.

Quote from frozzor:

sounds like someone who thinks they know everything but will eventually blow up their account one day. you can't account for everything, that's why it is gambling. you could make the best trades in the world, but there's always a chance they will fail.

 

[Jachyra]

Quote from Mr J:

I find it amusing that you jump on someone by suggesting that they don't know the definition, when you yourself do not know it. By definition, gambling is when one places a stake on an event with an uncertain outcome. That is it.

With all due respect sir, that simply is just not true. You were close though, but if you look in the dictionary you'll clearly see that the definition of gambling is when one places a stake on an event where the outcome is determined by "chance" ... not just that the outcome is unknown in advance.

http://dictionary.reference.com/browse/gambling

gam⋅ble
   ˈgæmbəl / [gam-buhl]
verb, -bled, -bling, noun
–verb (used without object)

1. to play at any game of chance for money or other stakes.

2. to stake or risk money, or anything of value, on the outcome of something involving chance: to gamble on a toss of the dice.

http://dictionary.reference.com/browse/chance

chance
   /tʃæns, tʃɑns/ [chans, chahns]
noun, verb, chanced, chanc⋅ing, adjective
–noun

1. the absence of any cause of events that can be predicted, understood, or controlled

2. luck or fortune: a game of chance.


Again, the outcome of ANY business transaction, with the exception of buying treasuries or sticking your money in a bank, is always unknown in advance. I doubt the average person would consider Donald Trump, or any businessman for that matter, a professional gambler simply because they are unable to predict with 100% certainty the exact outcome of their business transactions in advance.

 

[trader3cnd]

The ultimate aim of trading is price discovery.

Trading in any market is essential for proper valuations.

Trading can be gambling for some people called impulsive or emotional traders. They too provide liquidity and money to the whole industry to function better. Gamblers are needed.

Actually, I am looking for some gamblers to make money from.

 

[nysestocks]

Quote from BSAM:

This is such a no brainer, it's amazing this idea is debated over and over.

Yes, trading is gambling.

Exactly, and that is why so few make money worth talking about, same as in any other professional gambling activity!

 

[Mr J]

But Jachyra, chance is a factor in all trades, apart from those that lock in a profit without risk ever existing (e.g. a true arbitrage).

As for the definition of chance, it just means that there is no certain outcome.

 

[nysestocks]

Quote from limitdown:

Are gamblers losers?

Yes, they have no choice but to lose some of the time!

Are losers gamblers?

Yes, once you lose money in the markets you have taken a gamble!


Are investors both gamblers, losers and morally upright?

Yes, Yes and maybe some are?

How far does one need to push this social question? Clearly we all set the standard and have not convinced anyone to change in their deep held beliefs regarding this controversial, yet simplistic question.

If one wants to succeed in trading the markets then one has no option but to change!

.

 

[JSSPMK]

What one believes trading to be is just that - a personal conviction. Officially, trading is not classed as a gambling activity. If you disagree please feel free to drop a line to the SEC/CFTC or perhaps the FSA if you happen to live across the pond.