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View Poll Results: Is Trading Gambling or not
Gambling 438 34.87%
Not Gambling 818 65.13%
Voters: 1256. You may not vote on this poll

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Old Feb 15th, 2012, 11:59 AM   #1063
ElectricSavant
 
 
Join Date: Jan 2003
Location: Sweden, California, Colorado & New York
Posts: 14,844
Can a profitable trader gamble?

Can one be unprofitable and "not gamble"

Folks if you have not voted....well what are you waiting for? Take a chance!

ES
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Old Feb 15th, 2012, 12:01 PM   #1064
ElectricSavant
 
 
Join Date: Jan 2003
Location: Sweden, California, Colorado & New York
Posts: 14,844
Does a conservative trader "not gamble" ?

Folks please consider your options and vote.

ES
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Old Feb 15th, 2012, 12:07 PM   #1065
SimpleTrades
 
 
Join Date: Feb 2011
Posts: 1,386
Quote:
Quote from ElectricSavant:

Can a profitable trader gamble?

Can one be unprofitable and "not gamble"

Folks if you have not voted....well what are you waiting for? Take a chance!

ES
Sorry ES, not as simple as that. By definition, to profit from a risk one must gamble. However, over the long run, can you actually reduce your risk to 0? If you can, there is no risk, and therefore no gamble.

So the answer is in fact both: Each trade is a gamble, however if your strategy is sound, the sum of your trade results reduces your risk to 0. Therefore, CONSISTENTLY profitable trading in a set time frame, is NOT gambling.

http://en.wikipedia.org/wiki/Law_of_large_numbers

Is it reasonable to say that if your strategy is perfectly random, you can expect a result that will converge to your trade expenses?
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Old Feb 15th, 2012, 12:14 PM   #1066
ElectricSavant
 
 
Join Date: Jan 2003
Location: Sweden, California, Colorado & New York
Posts: 14,844
Can one consistently "not gamble"?

If one is losing does that mean he is gambling?

ES
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Old Feb 15th, 2012, 12:17 PM   #1067
ElectricSavant
 
 
Join Date: Jan 2003
Location: Sweden, California, Colorado & New York
Posts: 14,844
....did the Late Jesse Livermore "not gamble" ?
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Old Feb 15th, 2012, 12:59 PM   #1068
Don Bright
 
 
Join Date: Oct 2001
Location: Las Vegas, NV
Posts: 11,757
Quote:
Quote from ElectricSavant:

Good luck?...hmmmm.....

So you voted...?

ES
I think I voted years ago. I am in a position that I have to vote with so many caveats, that my vote may not matter. But I think the trading that I do, and my family does, is not gambling.

For those who don't know, we made our first big sum of money playing blackjack.

Ref, just for fun: http://www.blackjackforumonline.com/.../Brightint.htm

OK, playing blackjack can be pure gambling, or it can be a science with predictable results. We played for a few years, than after being barred on most "continents" LOL - we play very little these days. I do what a I call social blackjack, still with an edge, but just for $25 chips, not big money. Going to Laughlin in 2 weeks, meet with friends, have some fun, nice dinners, hopefully coming back with more money than when we got there.

To some, trading is pure gambling as well. To others, it is "risk-reward" - which can mean "gambling" or not. I'm not suggesting that by doing trading the way we do it (my brother, the family, and I....actually is different for each of us), you will always make money. But we feel pretty confident in how we work, that we share with others. And, here's the rub....we show the exact same set of basics to, say 10 people, maybe only 5 or 6 actually "get it" and are disciplined enough (as when we show others how to play blackjack properly), and even then, some deviate, some take higher risks, some simply don't do the homework involved.

So, a long answer to a short question. My "bet" would be that there is no answer that fits everyone.

I hope some of this makes sense.

You can thank Mr. Savant for inviting me back into this discussion, LOL.

All the best,

Don
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