Do You Think Trading is Gambling?

nysestocks · Jan 19, 2009

CRM5096 · Jan 19, 2009

SPECULATION AS A FINE ART
WHAT IS SPECULATION?
Before entering on our inquiry, before considering
the rules of our art, we will examine the subject in
the abstract. Is speculation right? It may be questioned,
tried by the highest standards, whether any
trade where an exact equivalent is not given can be
right. But as society is now organized speculation
seems a necessity.
Is there any difference between speculation and
gambling? The terms are often used interchangeably,
but speculation presupposes intellectual effort; gambling,
blind chance. Accurately to define the two is
difficult; all definitions are difficult. Wit and humor,
for instance, can be defined; but notwithstanding the
most subtle distinction, wit and humor blend, run into
each other. This is true of speculation and gambling.
The former has some of the elements of chance; the
latter some of the elements of reason. We define as
best we can. Speculation is a venture based upon calculation.
Gambling is a venture without calculation. The
law makes this distinction; it sustains speculation and
condemns gambling.
All business is more or less speculation. The term
speculation, however, is commonly restricted to business
of exceptional uncertainty. The uninitiated
believe that chance is so large a part of speculation
that it is subject to no rules, is governed by no laws.

SethArb · Jan 19, 2009

it might seem like gambling to the outsider

but to the wizard of oz

its just business

www.youtube.com/watch?v=X-ZULpr8m5o

* I am learning to respect his powers *

Mr J · Jan 19, 2009

Quote from gnome:

You are describing "skills"... The Texas Supreme Court once ruled, "poker is not gambling.. but rather a game of skill"...

You'll get nowhere making any other semantic argument with me.. regardless of your dictionary.

TRADING IS NOT NECESSARILY GAMBLING.

The legal definition of gambling is irrelevent. It only serves to distinguish between 'traditional' gambling, and gambling in markets such as the financials.

If you want to use the 'game of skill' argument, most forms of what the public thinks of as 'gambling' can be beaten in some way. In blackjack you can count cards, in sportsbetting you can use similar methods as in the financial markets, you can use basic strategy for video poker, for poker you can use the knowledge of behaviour to make informed decisions etc. This completely blows the 'game of skill or chance' argument out of the water.

It seems to me that people who suggest trading isn't gambling either don't understand the definition of gambling, or are fooling themselves into thinking that the markets are somehow above playing poker, blackjack or betting on sports. As if it is legit and professional rather than 'taking a punt'.

If you think trading is gambling you should not trade. Gambling is subject to strict probabilities (in the long run) that is why casinos are profitable.

Everything is about probabilities, and just like in the market, in some casino games you can turn it into your favour. The casinos profit over the longterm because few people try and make positive expectation bets. More people make money in the markets simply because more people are approaching it professionally.

AMT4SWA · Jan 19, 2009

Quote from nysestocks:

Yes or No?

Heck no......I can make an exceptional living TRADING and not much of a living gambling!

Jaytrade · Jan 20, 2009

Trading is the cousin of gambling, just accept it.

Accept it and learn how to adapt. In fact, waking up and trying to succeed in anything is a gamble, because you do not know the outcome, especially in this shitty economy.

Everything has it's risks. Speculation is when you define risk. Sheer gambling is out of hope.

"risk defined speculation"

the gambling aspect is a very thin line away!

I would say going into any business can be like gambling. You use known information to make a decision, but that doesn't make it fool proof.

You wager your money and assets to hopefully create more money, by specializing in a niche or service.

tradersboredom · Jan 20, 2009

the market is not a casino. but the market participatnts are making bets on the market.

you see. there will still be markets and companies without traders.

and the market doesn't need shorts either.

Quote from nysestocks:

Yes or No?

tradersboredom · Jan 20, 2009

95% of market participants are not 'investors'.

shorts/long traders are not investors.

market doesn't need market makers or traders.

there could be zero volume and companies would still be there and still producing goods etc in the real economy.

Quote from nysestocks:

Yes or No?

nysestocks · Jan 20, 2009

Traders are gamblers, not economists!

We do not have to know the intricate workings of how companies are financed, how they operate, or in some instances, even the name!

However, we do need to know how to read a stock price chart, when is the less risky time to place a bet, and when to get out when we have a loss, or a profit, realized.

4444CJones4444 · Jan 20, 2009

I think this covers at least 95% of day traders:

Gamble

Definition:

To engage in any activity in which money is put at risk for the purpose of making a profit, and which is characterized by some or most of the following (in approximately descending order of importance): little or no research has been conducted; the odds are unfavorable; the behavior is risk-seeking; an unsystematic approach is being taken; emotions such as greed and fear play a role; the activity is a discrete event or series of discrete events not done as part of a long-term plan; the activity is significantly motivated by entertainment or compulsion; ownership of something tangible is not involved; no net economic effect results.

Do You Think Trading is Gambling?

Do You Think Trading is Gambling?

Yes

No

nysestocks

Guest

CRM5096

SethArb

Mr J

AMT4SWA

Jaytrade

tradersboredom

Guest

tradersboredom

Guest

nysestocks

Guest

4444CJones4444