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: .
Come on NS

You can do better than the "semantics" driven post...this is boring...

Apply it to the example (s)

Lets not turn this into another duh trading or gambling thread..

Come out with it...

what say you, why is trading gambling? don't post what sounds good. NS this is semantics




Quote from NickelScalper:

There is an element of gambling any time you depend on a less than certain outcome.
More...
 
Sigh, this is getting boring....Same old ET...

Question.

Do most instruments range more than they trend by percentage of time?

Michael B.



Quote from kjkent1:

In my opinion, whether or not trading = gambling, depends largely upon the potential for loss on the trade.

Gambling and trading both rely on a legal contract that basically says, "In exchange for my wager of $X, you will pay me $Y, if I guess correctly on the agreed upon subject of the wager. Otherwise, I lose $X."

Examples:

If I am trading long on a stock that pays a 5% annual dividend, then while I may lose my initial trade, I may get all my money back, and more, over the long run. This is not gambling, in my opinion, because, if I stretch the wager out long enough, I will eventually win (unless the corporation terminates its dividend).

If I am trading an option, however, and I remain "out of the money" until expiration, then I lose $X, and there is no hope of ever recovering. This exactly satisfies the conditions of the legal definition of a gambling contract, as described above, therefore it "is" gambling.

The "odds" may be superior in the "market" as compared to the casino, but the character of the game is exactly the same.
More...
 
Quote from ElectricSavant:

Come on NS

You can do better than the "semantics" driven post...this is boring...

Apply it to the example (s)

Lets not turn this into another duh trading or gambling thread..

Come out with it...

what say you, why is trading gambling? don't post what sounds good. NS this is semantics
More...
Semantics? I'm trying to cut to the chase.

Show me an example contrary to my solution, and I'll splice the interlude back in.

Anyway, I can't download that attachment.
 
ok,

What if I don't care about the outcome....

What if movement in ANY direction is all I depend on?

What say you? Gambling or not?

Michael B.

P.S. Visualize another set of hedged pairs in the other direction. We have a total of four instruments now....or two if you want the perfect hedge


Quote from NickelScalper:

There is an element of gambling any time you depend on a less than certain outcome.
More...
 
Quote from ElectricSavant:

john 47,

It is a simple mathematical model that you can take down to zero and up to thousands and thousands....fully hedged and grabbing volatility.

However such "too volatile an instrument" will cause trade size to be to small in relation to equity traded (note I did not say risk capital)


Michael B.
More...

IC. well perhaps we have different thoughts. I'm just of the opinion that no matter how well developed your model is...price action is impossible to predict perfectly...so the best models are simply trying to place bets w/ the best odds. Like a poker player.

Difference of opinion/ view of trading.

I wish you luck w/ your strategies.
 
Ok,

But trading does not have to be gambling....odds seem to conotate expectation...


Quote from John47:

IC. well perhaps we have different thoughts. I'm just of the opinion that no matter how well developed your model is...price action is impossible to predict perfectly...so the best models are simply trying to place bets w/ the best odds. Like a poker player.

Difference of opinion/ view of trading.

I wish you luck w/ your strategies.
More...
 
Quote from ElectricSavant:

Sigh, this is getting boring....Same old ET...

Question.

Do most instruments range more than they trend by percentage of time?

Michael B.
More...

Sorry if I'm boring you, but your question is irrelevant to the thread topic, which was whether or not trading is gambling. Trading exactly meets the legal definition of gambling, if the subject matter of the wager has no inherent underlying value.

Options have no inherent underlying value, by design, thus, trading options meets the legal definition of gambling, and therefore trading options is gambling.

If you wish to change the original question to something like: "Can the odds of trading be made routinely favorable for the trader," then your question may become relevant.

ET threads routinely become moving targets. I don't want to argue against a moving target. But, if you want to fix the question at some other point, then I'll be happy to discuss that point.
 
kjent,

Excuse me, I read all your posts and agree with most of what you say. But sometimes, I get the feeling you post what sounds good and have no idea how to trade. No disrespct intended...

I am applying the proof that trading is not gambling by pointing to a working example.

We must take this step by step...

Sorry, but I want you to see this.

I cannot tell you an opinion.

If you believe that most instruments range more than they trend and can apply a percentage to it, then I say that trading cannot be a game of chance or gambling...or a desired unknown outcome...or luck...blah balah blah...

Maybe it can't be proven maybe it can? What say you..

Is trading gambling or not....
 
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