Is trading Gambling or not .."What say You" Vote here.

Is Trading Gambling or not

  • Gambling

    Votes: 460 35.0%

  • Not Gambling

    Votes: 854 65.0%
  • Total voters
    1,314
  • This poll will close: .
bhardy307...

You are very wise indeed.

ES

Quote from bhardy307:

I was just reading this old entry from 2005, 7 years ago. Very interesting to observe the process that many of us seem to repeat as we go from newbie to experienced. Several months ago, as a complete newbie, I proposed the same idea as above, and was promptly torn to pieces by the responses. :D
More...
 
Quote from ElectricSavant:

bhardy307...

You are very wise indeed.

ES
More...

Wise, not really, I just find it fascinating the extent with which trading actually exposes the current state of each person's character. We all seem to go through the same learning process, despite the advice of other experienced people, all 95% of us, while we learn to become the 5% that profit.

Is trading a gamble? Yes, until you learn to be that 5% who profit.
 
Quote from ElectricSavant:

Can a profitable trader gamble?

Can one be unprofitable and "not gamble"

Folks if you have not voted....well what are you waiting for? Take a chance!

ES
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Sorry ES, not as simple as that. By definition, to profit from a risk one must gamble. However, over the long run, can you actually reduce your risk to 0? If you can, there is no risk, and therefore no gamble.

So the answer is in fact both: Each trade is a gamble, however if your strategy is sound, the sum of your trade results reduces your risk to 0. Therefore, CONSISTENTLY profitable trading in a set time frame, is NOT gambling.

http://en.wikipedia.org/wiki/Law_of_large_numbers

Is it reasonable to say that if your strategy is perfectly random, you can expect a result that will converge to your trade expenses?
 
Quote from ElectricSavant:

Good luck?...hmmmm.....

So you voted...?

ES
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I think I voted years ago. I am in a position that I have to vote with so many caveats, that my vote may not matter. But I think the trading that I do, and my family does, is not gambling.

For those who don't know, we made our first big sum of money playing blackjack.

Ref, just for fun: http://www.blackjackforumonline.com/content/Brightint.htm

OK, playing blackjack can be pure gambling, or it can be a science with predictable results. We played for a few years, than after being barred on most "continents" LOL - we play very little these days. I do what a I call social blackjack, still with an edge, but just for $25 chips, not big money. Going to Laughlin in 2 weeks, meet with friends, have some fun, nice dinners, hopefully coming back with more money than when we got there.

To some, trading is pure gambling as well. To others, it is "risk-reward" - which can mean "gambling" or not. I'm not suggesting that by doing trading the way we do it (my brother, the family, and I....actually is different for each of us), you will always make money. But we feel pretty confident in how we work, that we share with others. And, here's the rub....we show the exact same set of basics to, say 10 people, maybe only 5 or 6 actually "get it" and are disciplined enough (as when we show others how to play blackjack properly), and even then, some deviate, some take higher risks, some simply don't do the homework involved.

So, a long answer to a short question. My "bet" would be that there is no answer that fits everyone.

I hope some of this makes sense.

You can thank Mr. Savant for inviting me back into this discussion, LOL.

All the best,

Don
 
Quote from ElectricSavant:

Can a profitable trader gamble?

Can one be unprofitable and "not gamble"

Folks if you have not voted....well what are you waiting for? Take a chance!

ES
More...

a. yes

b. yes

Don
 
Quote from bhardy307:

Sorry ES, not as simple as that. By definition, to profit from a risk one must gamble. However, over the long run, can you actually reduce your risk to 0? If you can, there is no risk, and therefore no gamble.

So the answer is in fact both: Each trade is a gamble, however if your strategy is sound, the sum of your trade results reduces your risk to 0. Therefore, CONSISTENTLY profitable trading in a set time frame, is NOT gambling.

http://en.wikipedia.org/wiki/Law_of_large_numbers

Is it reasonable to say that if your strategy is perfectly random, you can expect a result that will converge to your trade expenses?
More...

Similar to my "long answer" above. Risk-reward vs. straight "gamble."

And hell, if we get all esoteric about it, don't we all gamble everyday? Taking a risk is taking a gamble of sorts. But, trying to keep it simple, down to blackjack and trading, the answer is, again..."it depends" - that's my answer, and I'm sticking to it, LOL.

Don
 
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