Is it trading or gambling?

OPTIONAL777 · Nov 25, 2002

Quote from cheeks:

I hate semantics. However, whowah is correct. according to the dictionary definition(both Webster and American Heritage) we are gamblers. I personally do not like the connotation associated with gambling, but whatever.

I am sure that Bright Trading, having its home base in Las Vegas, feels the same way about the negative connotation.

It's NOT GAMBLING! The ratio of people who try to day trade as a profession and becoming winners in the long run compared to ending up losers is in the long run is nothing like gambling statics of winners versus losers....at least with gambling you might get lucky.

Homer · Nov 25, 2002

Trading IS gambling in my opinion, but the main difference is that i'm the house. When I step up to the table I have the odds in my favor not the other way around. I can lose money like it is nobody's business in Vegas, but to me it is usually blind luck that determines my outcome. Making money (or Losing money) trading is rarely blind luck. I always make sure the odds are in my favor before I put my money on the line.

ElCubano · Nov 25, 2002

vladiator · Nov 25, 2002

Quote from Breakout:

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

The assumption being that this speculator is a professional who is an expert in risk management and is sufficiently capitalized to suffer the potential consequences of this risk. Most small gamblers/traders aren't falling into that category - hence the societal implications and the PDT.
In a pareto-efficient equilibrium, the risk shoud be transferred to those who are best suited to bear it (i.e. are large and diversified enough). Small speculators aren't. The quote you are giving is absolutely correct.

vladiator · Nov 25, 2002

Quote from Breakout:

b : to bet on an uncertain outcome

Actually, gambling has a certain outcome. It's been mathematically proven the house will win.

There is a difference between the expected outcome and the realized one In terms of the former, yes the house will win. In terms of the latter, you might too. Hence - the outcome is <b>uncertain</b>

More...

vladiator · Nov 25, 2002

Quote from bobcathy1:

I think marriage and gambling have a lot in common

... if your marriage is pre-arranged and you never got a chance to find out who the person is

Otherwise, I think that if approached seriously, it can be like Warren Buffet's investments - do research, go sample some merchandise that the company produces... If you like it - buy it

Except that there are no potential diversification effects...

...unless one diversifies across time via a divorce/re-marriage routine.
Or unless one moves to middle east

vladiator · Nov 25, 2002

Quote from dojibear:

A very fine line separates trading and gambling. A trader could be a gambler, but he/she could decides to be on the house's side by managing the odds or risk. The ultimate end is to make money, for you to decide which side you want to be.
Cathy, ask your husband if he thinks the casinos' owners make $$ or not, and are they gambling too?

Cheers!!

The casino in this case is the broker who gets the commisions...

cheeks · Nov 25, 2002

Quote from vladiator:

it can be like Warren Buffet's investments

when it come to the opposite sex, I prefer trading to the buy and hold style......

vladiator · Nov 25, 2002

Quote from cheeks:

when it come to the opposite sex, I prefer trading to the buy and hold style......

... that's if you are into scalping or short term swings. I think that both in trading and with the opposite sex the real gains come with a longer outlook... Ideally some would like to have (a) long term investment(s) and do some daytrading on the side ha?

That may interfere with the performance of the buy-n-hold strategy though.

cheeks · Nov 25, 2002

Quote from vladiator:

... that's if you are into scalping or short term swings. I think that both in trading and with the opposite sex the real gains come with a longer outlook... Ideally some would like to have (a) long term investment(s) and do some daytrading on the side ha? That may interfere with the performance of the buy-n-hold strategy though.

LOL....

I definitely prefer daytrading. I don't like "holding" overnight......