You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Explain to a 5 year old, how is trading different from gambling?
- Thread starter Debaser82
- Start date
The probability/statistics behind every game of chance on the casino floor is extremely well known. The casino has no problems being down millions of dollars to a big gambler... as long as they play the game (as designed) long enough, it's coming back to the casino.Quote from PocketChange:
And the Casino can deny the Gambler continued play.
Yes, and yes.Quote from BSAM:
If you go to Vegas and lose $20,000 on Saturday night playing blackjack, are you gambling?
If you go to Vegas and win $20,000 on Saturday night playing balckjack, are you gambling?
I love Vegas... specifically, I love blackjack and craps. But I'm well aware of the difference between gambling and investing.
Quote from Debaser82:
Both deal with odds and probabilities, don't they?
Okay Debaser, let's try this again.
Gambling a trading have two different base platforms after you figure out what is going on.
Sentiment.
Sentiment is measured by volume and/ or volatility.
There is no sentiment a roulette wheel. When you spin a balanced roulette wheel, the outcome is random. Not so in any market traded by humans.
Sentiment is your key.
Did I mention sentiment?
Take a quarter out of your pocket and flip it. Tell the kid that every time you flip the quarter and it comes up heads your will give him a dollar and a dime but when it comes up tails he must give you a dollar.
Then tell him that those type of opportunities exist -- from time to time -- in markets for the astute observer to act on. If he does not see the difference between using money in that game and betting on the wheel take him back to the hospital and tell them he is simply too stupid to be yours.
Then tell him that those type of opportunities exist -- from time to time -- in markets for the astute observer to act on. If he does not see the difference between using money in that game and betting on the wheel take him back to the hospital and tell them he is simply too stupid to be yours.
Quote from BSAM:
Explain to a 5 year old, how is trading different from gambling?
It's not. Don't let any fancy persuasions allow you to believe otherwise.
When you risk money on any uncertain outcome, it constitutes a gamble.
You risk money in gas to drive to your job, which may or may not be there when you get there. As a consequence of this logic, every single thing we do that involves money is a gamble. Would agree with this?
Quote from BSAM:
It's not. Don't let any fancy persuasions allow you to believe otherwise.
When you risk money on any uncertain outcome, it constitutes a gamble.
Is running a casino different from gambling?
Is being a profitable black jack card counter different from gambling?
Is being a profitable trader for the last three years different from gambling?
(And i dont mean a profitable trader who has just been buying dips in a bull run, nothing wrong with that but it might be luck we cant tell. What i mean is a trader who has been making 100s of small trades, both long and short in many different markets or stocks over at least a three year period, for more than three years is even better of course)
All the three of the above are not gambling my opinion, very little luck is involved or required in any of the above (although luck does help) .
They are all probability (and money management) games with a positive expectancy, they are not gambling.
The only difference with trading and the first two is that you can never be sure if your edge is going to continue to work in the future, but as long as it does you can continue to say that you are not gambling.
Quote from Millionaire:
Is running a casino different from gambling?
Is being a profitable black jack card counter different from gambling?
Is being a profitable trader for the last three years different from gambling?
(And i dont mean just a trader who has been buying dips in a bull run, nothing wrong with that but it might be luck we cant tell, i mean a trader making 100s of small trades, both long and short in many different markets or stocks over at least a three year period, for more than three years is even better of course)
All the three of the above are not gambling my opinion, very little luck is involved or required in any of the above (although luck does help) .
They are all probability (and money management) games with a positive expectancy, they are not gambling.
The only difference with trading and the first two is that you can never be sure if your edge is going to continue to work in the future, but as long as it does you can continue to say that you are not gambling.
When you risk money on any uncertain outcome, it constitutes a gamble.
Quote from RCG Trader:
You risk money in gas to drive to your job, which may or may not be there when you get there. As a consequence of this logic, every single thing we do that involves money is a gamble. Would agree with this?
There's no risk in paying money for which the purchase of gas was intended. The gas was purchased to get one to work.
When you risk money on any uncertain outcome, it constitutes a gamble.