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: .
I can't believe I'm posting in this silly semantics thread.

If gambling is risking money on an uncertain outcome, trading is gambling. So is opening a business, or buying an index fund.

This is closest to my definition, so IMO of course it is gambling.

If gambling is risking money in an uncertain outcome with a _negative expectation_, then it may or may not be gambling, depending on how the trading is being done. Then again, by this definition skilled poker players with good game selection or BJ card counters are not gambling, either. But most people wouldn't buy that.

Fletch
 
Quote from themarket:

IMHO, I think a missing piece of the discussion should revolve around the fact that a "share" represents actual ownership in the company, albeit a small share. It is ownership nonetheless. You don't have that with gambling. True...alot of the price movements seem to be smoke and mirrors, but the underlying foundation still rests with ownership. People and organizations gain control of entire companies through the same system we use to buy and sell single shares. The percentage of ownership is different...but the concept is not.
More...
I'll sell you a 1% share of my car for 100 times par value with only a few caveats: You can't ride in it, you can't tell me what to do with it, and you can't share in any money I earn with it.

However, you are free to sell another sucker your share.

Okay it's not gambling, it's fraud:)

Don
 
why is my buying a stock at 30.00 and hoping to sell it at 30,25 gambling but my buying a shirt at 5 dollers and hoping to sell it in a store for a profit not gambling?
 
Quote from Don87109:

I'll sell you a 1% share of my car for 100 times par value with only a few caveats: You can't ride in it, you can't tell me what to do with it, and you can't share in any money I earn with it.

However, you are free to sell another sucker your share.

Okay it's not gambling, it's fraud:)

Don
More...

I am assuming your car does not distribute a dividend?
 
Quote from mrmoose:

why is my buying a stock at 30.00 and hoping to sell it at 30,25 gambling but my buying a shirt at 5 dollers and hoping to sell it in a store for a profit not gambling?
More...
Because your shirt has a practical, useful purpose. Stocks have no practical purpose, it's just a piece of paper. You can't eat it, wear it, nor does it give shelter. Best you can do with a stock is find a greater fool.

Don

P.S. Again, stocks paying a significant dividend are excluded from the above. They actually have a practical purpose.
:
 
Wait a minute, isn't getting in a car just a gamble with a high R/R ratio based on biased personal backtesting?

All of life involves evaluation of risk. I think the validity and magnitude of the r/r ratio discerns a gamble from an acceptable risk.

The greatest risk is to take no risk.
 
Depends:

Universe of Decisions:
A. Good evaluation
B. Poor evaluation or no evaluation
C. Estimated positive expectancy
D. Estimated negative or zero expectancy

Bad Trade=Bad Risk=Gamble={AD, BC, BD}
Good Trade= Acceptable Risk=AC

Even selecting a full-time job involves a similar decision process. Most of these are bad trades as well!

:D
 
You must log in or register to reply here.
Back
Top