I wouldn't consider it gambling in the "normal" sense. In a gamble, you place your bet and that's it. You can't change your mind and "stop out" at half time if the game is not going your way. But you can exit a trade when new information presents itself. In the strictest sense, driving to work in the morning is a gamble. The ouotcome is unknown. Will I make it or not? IMHO.
Is trading Gambling or not .."What say You" Vote here.
- Thread starter ElectricSavant
- Start date
Gambling or trading? This is always a question that can be like religion and politics.
The difference involves being able to control the outcome of the "BET", in gambling a player has "ZERO" control of the final results, a trader has "TONS" of control over the results of his/her "BET".
Ok, LETS GO!! To be a gambler you first must be a fool. To be a trader you must know the difference between the two.
A gambler plays a game of chance where in most situations he/she has no control over the outcome of the "BET". Example: Once the "WINDOW" closes at the track, thats it, the outcome of the race is out of your control. Same for sports, once the game starts the betting is over. Correct?
A trader on the other hand "HAS CONTROL OF THE OUTCOME". He/She can exit the bet after the pit opens for trading, he/she can add to the bet, decrease its size, etc.
SO, it sounds to me that a gambler is playing a game of chance and the trader is playing a game of skill.
Could that be why they say: "You have met the enemy, it is yourself"...:eek:
The difference involves being able to control the outcome of the "BET", in gambling a player has "ZERO" control of the final results, a trader has "TONS" of control over the results of his/her "BET".
Ok, LETS GO!! To be a gambler you first must be a fool. To be a trader you must know the difference between the two.
A gambler plays a game of chance where in most situations he/she has no control over the outcome of the "BET". Example: Once the "WINDOW" closes at the track, thats it, the outcome of the race is out of your control. Same for sports, once the game starts the betting is over. Correct?
A trader on the other hand "HAS CONTROL OF THE OUTCOME". He/She can exit the bet after the pit opens for trading, he/she can add to the bet, decrease its size, etc.
SO, it sounds to me that a gambler is playing a game of chance and the trader is playing a game of skill.
Could that be why they say: "You have met the enemy, it is yourself"...:eek:
There a big difference between assuming the risk of what card will be turned up next and assuming a risk that someone needs to offset so that they can run a business.
I have to say that I find this question insulting. Not it isn't something that all traders have to sort out for themselves but the suggestion that trading is about as important as gambling distorts mass perception on how important capital markets are to the economy.
I have to say that I find this question insulting. Not it isn't something that all traders have to sort out for themselves but the suggestion that trading is about as important as gambling distorts mass perception on how important capital markets are to the economy.
So then I guess playing poker is not gambling because its a game of skill, in which case the player can control the amount they lay out on the table, fold when its not looking good and put their money out when the outcome looks favorable? Blackjack is not considered gambling then because you can learn how to count cards so that your bets are "controlled" and your "outcomes" are more favorable for you.
Anything where you do not know the outcome 100% is gambling. Also, anything that has the possibility of losing money is gambling. Therefore trading is gambling, poker is gambling, and blackjack is gambling. Can you have skills in these three professions? Yes and you can make a damn good living out of it if you are good. Any trader that thinks what they do is not gambling may be in denial.
Accountant
By definition, to gamble means:
1. to play a game for a stake;
2. to bet on an uncertain outcome;
3. to stake something on a contingency;
4. to speculate.
Some people may go in with their eyes closed while others may choose a somewhat more measured and calculated approach to risk taking. But the approach is more a reflection on the player than on the game itself. To trade is to gamble. How you choose to trade is up to you.
1. to play a game for a stake;
2. to bet on an uncertain outcome;
3. to stake something on a contingency;
4. to speculate.
Some people may go in with their eyes closed while others may choose a somewhat more measured and calculated approach to risk taking. But the approach is more a reflection on the player than on the game itself. To trade is to gamble. How you choose to trade is up to you.
One man's "speculation" may be another man's "gambling." To yet a third individual, it may be six of one and half dozen of the other. Whose value judgment, based in part on relative risk aversion, is the "right" one?
If there is to be any distinction, then I would suggest that it is not necessarily in the activity itself but in the way that individual participants approach that activity. (Assuming, of course, that the activity in question is not outright lunacy such as the purchase of lottery tickets or anything of similar ilk. Personally, I don't consider such activities to be either gambling or speculation since the outcome is virtually assured.)