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Is Trading Gambling or not
You do not have permission to vote on this poll. |
| Gambling |
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438 |
34.98% |
| Not Gambling |
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814 |
65.02% |
| Total: |
1252 votes |
100% |
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John47
Registered: Oct 2004
Posts: 722 |
04-10-05 06:52 PM
my humble opinion:
Casino gambling w/ slots and what not, pure chance/luck...doesn't appeal to me.
Poker/trading....at the higher levels, where it is a career for people......it is people that know their game well, and take bets when the odds are in their favor.
You make a trade when you feel you have an 'edge' in the odds, right? That if you take that same trade over and over, you will come out ahead becasue of your edge, your odds.
A pro gambler does something very similar...they play the hands (take the trades) where they feel they have a better than random chance of taking the pot (making a winning trade).
I think alot of careers involve playing odds....perhaps trading and poker most obvliously.
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FredBloggs
Registered: Feb 2004
Posts: 3154 |
04-10-05 07:01 PM
gambler or trader?
the answer lies in how the individual understands and approaches risk.
does a casino gamble, or is it only the customer who gambles? both carry risk, they just manage it differently.
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MrsSavant
Registered: Mar 2004
Posts: 620 |
04-10-05 07:03 PM
Mr 47,
Look at the example in this thread and reflect and apply what you are saying to the example. There is no directional bias. There is no playing the game well.
If you have limited capital, try this at Oanda. I watch Electric Volatility Grab every day...
I must agree, Trading is not gambling, even though I am not a trader and depend on an advisory that may gamble...
Let me say, that Electric would never allow me to trade an advisory that posted hypothetical results. I have been trading this advisory for 1 1/2 years now. If it stops working, then I will not be trading and need to learn how.
Wifey
Quote from John47:
my humble opinion:
Casino gambling w/ slots and what not, pure chance/luck...doesn't appeal to me.
Poker/trading....at the higher levels, where it is a career for people......it is people that know their game well, and take bets when the odds are in their favor.
You make a trade when you feel you have an 'edge' in the odds, right? That if you take that same trade over and over, you will come out ahead becasue of your edge, your odds.
A pro gambler does something very similar...they play the hands (take the trades) where they feel they have a better than random chance of taking the pot (making a winning trade).
I think alot of careers involve playing odds....perhaps trading and poker most obvliously.
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illiquid
Registered: May 2002
Posts: 3613 |
04-10-05 07:05 PM
Electric, what would have happened to a trader who implemented that strategy with say JPY 20 + years ago when yen was trading around 220 to the dollar?
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MrsSavant
Registered: Mar 2004
Posts: 620 |
04-10-05 07:07 PM
Mr Bloggs,
As another poster eluded to, lets not turn this into a conceptual game of symantics as these type of threads turn into.
Lets concentrate on the example and the work at hand....
Please excuse me sir, I am not approaching you in a challenging or condescending tone. I would never do this publically to Electric's friends.
If the example is too hard...I can ask Electric to give us an easier example to work on, that will prove trading is not gambling?
Wifey
Quote from FredBloggs:
gambler or trader?
the answer lies in how the individual understands and approaches risk.
does a casino gamble, or is it only the customer who gambles? both carry risk, they just manage it differently.
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ElectricSavant
Registered: Jan 2003
Posts: 14844 |
04-10-05 07:13 PM
I am not sure, as this cannot be backtested. I would be very profitable on the realized profit from the chop, however. I could visualize that today I could go flat in it with a net profit. How much profit I do no know.
The ability to trade correctly with the proper incremental spacing and trade size is key in your example.
Michael B.
P.S. I might add, ones ability to suffer the unrealized P/L during this 20 years without a margin call would be key to survival.
Quote from illiquid:
Electric, what would have happened to a trader who implemented that strategy with say JPY 20 + years ago when yen was trading around 220 to the dollar?
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