Psychology: Professional Trader, or professional gambler?

OPTIONAL777 · Jun 16, 2003

Here is an example of someone who believes they have a plan:

nitro (Jun 16, 2003 10:10:36 AM)
holding 500 Qs and 500 GE short

nitro (Jun 16, 2003 10:10:46 AM)
dire

nitro (Jun 16, 2003 10:10:48 AM)
die

nitro (Jun 16, 2003 10:11:15 AM)
I want out now

nitro (Jun 16, 2003 10:11:18 AM)
I am going to hold

nitro (Jun 16, 2003 10:11:25 AM)
die

nitro (Jun 16, 2003 10:12:11 AM)
out last Qs + .06

nitro (Jun 16, 2003 10:12:28 AM)
out last GE + .05

nitro (Jun 16, 2003 10:12:35 AM)
probably all too soon

nitro (Jun 16, 2003 10:16:57 AM)
that is exaactly how it shoul be played

nitro (Jun 16, 2003 10:17:19 AM)
all as expected

ElCubano · Jun 16, 2003

it is all gambling...can a gambler have an edge?? sure...but when u place a bet on a direction u are in fact taking a gamble the direction continues in your favor.....peace

nitro · Jun 16, 2003

Gambler.

[Music in the background] You gotta know when to hold'em, know when to fold'em....Know when to walk away...Know when to run...

nitro

market_man76 · Jun 16, 2003

Quote from OPTIONAL777:

Here is an example of someone who believes they have a plan:

He may believe it, but I don't :eek:

I don't think real traders(ie. good ones) post to chat rooms or are prolific elite trader message board virtuosos

marketsurfer · Jun 16, 2003

Quote from market_man76:

He may believe it, but I don't :eek:

I don't think real traders(ie. good ones) post to chat rooms or are prolific elite trader message board virtuosos

on what grounds do you base your statement ?

Breakout · Jun 16, 2003

Quote from ElCubano:

it is all gambling...can a gambler have an edge?? sure...but when u place a bet on a direction u are in fact taking a gamble the direction continues in your favor.....peace

I don't gamble...I speculate.

OPTIONAL777 · Jun 16, 2003

Quote from Breakout:

I don't gamble...I speculate.

Ya, I see speculators at the track all the time, yelling at horses to run faster. Very rational. Sort of like yelling at a stock to decline in price.

Breakout · Jun 16, 2003

Quote from OPTIONAL777:

Ya, I see speculators at the track all the time, yelling at horses to run faster. Very rational. Sort of like yelling at a stock to decline in price.

Depends on the odds...if the odds are against you, you're
gambling. If the odds are in your favor, you're speculating.

This is how Vic puts it..."Gambling is taking a
risk when the odds are against you, like playing the lottery or
pumping silver dollars into a slot machine. Speculating is taking
a risk when the odds are in your favor.

Trader Vic-Methods of a Wall Street Master...pg.5

OPTIONAL777 · Jun 16, 2003

Quote from Breakout:

Depends on the odds...if the odds are against you, you're
gambling. If the odds are in your favor, you're speculating.

This is how Vic puts it..."Gambling is taking a
risk when the odds are against you, like playing the lottery or
pumping silver dollars into a slot machine. Speculating is taking
a risk when the odds are in your favor.

Trader Vic-Methods of a Wall Street Master...pg.5

They give odds all the time at the track. The favorite is 5 to 2. Odds are in your favor. That is speculating and not gambling?

The Vegas sports book is all about odds, is that specualtion?

dbphoenix · Jun 16, 2003

Quote from Breakout:

This is how Vic puts it..."Gambling is taking a risk when the odds are against you, like playing the lottery or
pumping silver dollars into a slot machine. Speculating is taking
a risk when the odds are in your favor.

Trader Vic-Methods of a Wall Street Master...pg.5

Much as I admire Vic, this is all pretty silly. The key word here is not "trader" or "gambler" but "professional". A professional gambler takes his risk when the probabilities are in his favor, just as the professional trader does. The amateur gambler just throws money at the house, just as the amateur trader throws money at the market.

The question, then, is whether or not Nitro is behaving like a professional or an amateur.