Trading is Gambling. You know it! Be honest

[OddTrader]

Quote from OddTrader:

Probably the whole book of "Trading in the Zone" by Mark Douglas is about "Learning to trade an edge like a Casino (page 189)".

Clearly there is BIG difference between casinos and players.

Casinos are capital-intensive and mathematics/statistics-based businesses, whereas players merely gamblers.

 

[Trader28Lite]

Quote from OddTrader:

Clearly there is BIG difference between casinos and players.

Casinos are capital-intensive and mathematics/statistics-based businesses, whereas players merely gamblers.

Actually the players that try to run their business the way we do get banned for counting cards etc... only the casino is allowed to have probability on it's side

 

[JimmyJam]

Quote from OddTrader:

Clearly there is BIG difference between casinos and players.

Casinos are capital-intensive and mathematics/statistics-based businesses, whereas players merely gamblers.

That's exactly the point Electric is making with these threads. The trader can be the capital-intensive and mathematically/statistically-based business even more so than the casino.

JJ

P.S. I was going to say that the individual trader has the advantage of being able to pick-their spots and the casino does not, but that is not quite true, they have a million ways of keeping the odds overwhelmingly in their favor, not the least of which is managing good gamblers :eek: .

 

[JimmyJam]

Quote from Trader28Lite:

Actually the players that try to run their business the way we do get banned for counting cards etc... only the casino is allowed to have probability on it's side

Yeah, that's one of the things that I was referring to.

But players (and casinos) are very creative, and to combat card counters one of the many tools that a casino uses are multiple-deck card shufflers, so it's not like it was in the good 'ol days.

But by that same token, gamblers/hustlers are much more creative in their game playing as well.

JJ

 

[OddTrader]

Quote from JimmyJam:

The trader can be the capital-intensive and mathematically/statistically-based business even more so than the casino.

This's exactly the point I am making with those words. A trader can trade like either a casino-owner or a casino-player.

 

[FightTheFuture]

Is driving to and from work gambling? Would you be betting your life on each trip? Lifetime odds of being killed in a vehicle are 1 in 84. Sounds like a very risky bet.

Can you make the odds more in your favor? Like quit your miserable job and trade instead?

 

[JimmyJam]

Quote from JimmyJam:

While not a requirement, it is also beneficial to a trader if they can decrease their risk while increasing their position size. This will have the overall effect of increasing their gains, and decreasing the risk involved in any one trade or series of trades, thus allowing them to increase their gains even further.

Electric knows the concept well and it is just one of the many concepts that he uses to his advantage when trading.

Perhaps having a toolbox of such tricks leads him to the belief that trading is in fact, not gambling, but it is folks, it is ... there is just an ultimate risk-of-ruin/blowout/failure of single digits, that's all.

Regards,

JJ [/B]

Which, once you meet a certain benchmark/threshold, managed over-time in a consistent fashion, probably relegates his risk-of-ruin to a range of 1%-3% (ie, only through catastrophic system failure is there real risk in his trades) .. and I'm sure he has the gold buillion bars stashed away someplace.

Hmph, thanks for the lesson.

Best Regards,

JJ

 

[ElectricSavant]

Look in your PM....

Quote from JimmyJam:

Which, once you meet a certain benchmark/threshold, managed over-time in a consistent fashion, probably relegates his risk-of-ruin to a range of 1%-3% (ie, only through catastrophic system failure is there real risk in his trades) .. and I'm sure he has the gold buillion bars stashed away someplace.

Hmph, thanks for the lesson.

Best Regards,

JJ

 

[CasinoKid]

Trading is not gambling. I will end this debate for once and for all.

Gambling in an economic view creates no wealth or whatsoever cuz you can bet on anything as silly as it sounds.

Whereas when you are trading or speculating it adds wealth to the economy cuz you are investing your money into a corporation for example.


Moreover, a trader can be consistently up for 20 or 30 straight days for example as opposed to a gambler when the odds are against him it will be very difficult for him to generate this kind of result.

 

[Trader28Lite]

Quote from CasinoKid:

Trading is not gambling. I will end this debate for once and for all.

Gambling in an economic view creates no wealth or whatsoever cuz you can bet on anything as silly as it sounds.

Whereas when you are trading or speculating it adds wealth to the economy cuz you are investing your money into a corporation for example.


Moreover, a trader can be consistently up for 20 or 30 straight days for example as opposed to a gambler when the odds are against him it will be very difficult for him to generate this kind of result.

Professional gamblers make 95% of traders look like dog meat