Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
02-15-12 06:03 PM
Quote from bhardy307:
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?
Similar to my "long answer" above. Risk-reward vs. straight "gamble."
And hell, if we get all esoteric about it, don't we all gamble everyday? Taking a risk is taking a gamble of sorts. But, trying to keep it simple, down to blackjack and trading, the answer is, again..."it depends" - that's my answer, and I'm sticking to it, LOL.
Don
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Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
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