Is it trading or gambling?
- Thread starter bobcathy1
- Start date
I'd say...
A gambler takes on risk for the fun of it. It may be profitable but often they'll play a negative expectation game because the fun they have is more valuable than the expected losses.
A trader takes on risk with an expectation of profit. It may be fun but that's not the primary motivation.
A gambler takes on risk for the fun of it. It may be profitable but often they'll play a negative expectation game because the fun they have is more valuable than the expected losses.
A trader takes on risk with an expectation of profit. It may be fun but that's not the primary motivation.
I Like how Ralph Vince put it in his book" Portfolio
Management Formulas"
"The main difference between gambling and speculation is that
gambling creates risk (and hence is considered morally wrong
in most societies) whereas speculation is a transference of an
already existing risk to a speculator."...Ralph Vince
Management Formulas"
"The main difference between gambling and speculation is that
gambling creates risk (and hence is considered morally wrong
in most societies) whereas speculation is a transference of an
already existing risk to a speculator."...Ralph Vince
Quote from bobcathy1:
IMHO I think I am a trader.
My husband refers to it as placing bets.
What do you think of yourselves?
Tell him you are in "risk managment", that is what I used to tell everyone.
The only problem is if you tell people that at these christmas coctail parties exepect to find yourself stuck in the corner with the accountants and actuaries. Dullsville.
It all depends on how much you mitigate the risk.
If you don't look both ways before you cross the street, that would be gambling. If you don't stop at a red light, that would be gambling.
If you work hard at trading, study, adhere to the rules you set forth, that would be speculating (trading)
Much in life has an element of risk...The key as to whether something becomes "a gamble" or not has much to do with mitigating that risk.
If you don't look both ways before you cross the street, that would be gambling. If you don't stop at a red light, that would be gambling.
If you work hard at trading, study, adhere to the rules you set forth, that would be speculating (trading)
Much in life has an element of risk...The key as to whether something becomes "a gamble" or not has much to do with mitigating that risk.
found at
http://www.merriam-webster.com/cgi-bin/dictionary?book=Dictionary&va=gambling
One entry found for gamble.
Main Entry: 1gam·ble
Pronunciation: 'gam-b&l
Function: verb
Inflected Form(s): gam·bled; gam·bling /-b(&-)li[ng]/
Etymology: probably back-formation from gambler, probably alteration of obsolete gamner, from obsolete gamen (to play)
Date: circa 1775
intransitive senses
1 a : to play a game for money or property b : to bet on an uncertain outcome
2 : to stake something on a contingency : take a chance
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There is no reference to the mathematical expectancy of the game, nor is there a reference to morality, just the fact that a game is involved and that the outcome is not certain. The outome is of couse uncertain in the market and if you consider this a game then , yes it is gambling.
http://www.merriam-webster.com/cgi-bin/dictionary?book=Dictionary&va=gambling
One entry found for gamble.
Main Entry: 1gam·ble
Pronunciation: 'gam-b&l
Function: verb
Inflected Form(s): gam·bled; gam·bling /-b(&-)li[ng]/
Etymology: probably back-formation from gambler, probably alteration of obsolete gamner, from obsolete gamen (to play)
Date: circa 1775
intransitive senses
1 a : to play a game for money or property b : to bet on an uncertain outcome
2 : to stake something on a contingency : take a chance
----------------------------------------------------------------------------
There is no reference to the mathematical expectancy of the game, nor is there a reference to morality, just the fact that a game is involved and that the outcome is not certain. The outome is of couse uncertain in the market and if you consider this a game then , yes it is gambling.