Trading is gambling- Only if you make it gambling

M

Motivator

Trading does not have to be gambling. As a trader, I make informed decisions based on various information. That said, I can exit a trade with a minimum amount of discomfort if it is not producing what I expect. Think of a trade that is going the wrong way as an employee in your company that is not doing his job so you dismiss him.
Gambling- the futures are up big so you just start buying tech stocks at the open.
Gambling-a stock is sitting just under the 50 dam and you think today is the day it explodes to the upside so you buy it. I would wait until it breaks above it and wait for some consolidation first.
Gambling- stock xyz dropped 20 points in 3 days and its due for a bounce.
I look for daily set ups based on patterns and also a strong analyst report on that stock never hurts. the set up with a stop loss.
 
If you do not understand why are you doing something then it can be called gambling. But if you have calculated risk and your ex ante calculated probability of success is positive then it is certainly not gambling. But more is required than just an optimized backtest. If one understands why (s)he is trading it that way, that makes the foundation and makes it a sound strategy.
 
There are some similarities between investment trading and gambling, but they are essentially different activities.

Gambling is usually based on pure luck or randomness, with participants placing bets on uncertain outcomes. Gambling often lacks a decision-making process based on research, analysis, or knowledge, and winning or losing relies heavily on chance.

In contrast, investment trading is a planned, purposeful act that involves in-depth research and analysis of a market, company, industry, or asset. Investors typically make decisions based on data, information and experience, seeking to balance risk and reward. The goal of investment trading is to grow capital or achieve financial goals over the long term rather than relying solely on luck.

Although there are differences between investing and gambling, in some cases people may mistake speculation for investing. Speculation may involve high-risk, short-term transactions that may sometimes be closer to gambling in that they may rely on market fluctuations and short-term trends rather than long-term fundamental values.

The key therefore lies in the purpose, methods and strategies of individual participation. If a person is committed to long-term investment appreciation based on rationality, planning and knowledge, then this is more likely to be an investment. But if it relies solely on luck and poorly thought-out decisions, it might be closer to gambling.
 
It's gambling no matter how you look at it. Those that say "No! I'm a skilled trader so I'm not gambling!" is just fooling themselves. Because a poker player can be a skilled poker player, but at the end of the day, he is just a profitable gambler. And just about everything we do in life is a gamble. Hopping in our car to drive somewhere is gambling, we are gambling with our lives when we drive. Drinking a glass of water can be gambling. What if we accidently shove the glass of water down our throat and it breaks or suffocates us? That can be gambling. Just because we aren't at a casino doesn't mean it's not gambling.

Stop trying to sugarcoat everything and just accept it how it is. We are gambling and some of us are better at it than others. Some of us may even know how to count cards, others may be profitable from cheating (Insider info or manipulation). And at the end of the day, we're all gamblers, which some of us are still in the denial stage to protect their egos.
 
There is nothing wrong with gambling itself. Casinos gamble and make a lot of money.
What is wrong is gambling when the odds are not in your favor.
 
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