Do You Think Trading is Gambling?

Discussion in 'Psychology' started by nysestocks, Jan 17, 2009.

Do You Think Trading is Gambling?

  1. Yes

    140 vote(s)
    44.7%
  2. No

    173 vote(s)
    55.3%
  1. JSSPMK

    JSSPMK

    tomato is a fruit, perhaps we should start a poll? :)

     
    #261     Feb 4, 2009
  2. Risking money on an uncertain outcome is Gambling.
     
    #262     Feb 4, 2009
  3. Pekelo

    Pekelo

    Oh, the IRONY!!!

    This is not a "what the majority thinks" kind of question. :)

    I will explain what causes the confusion:

    There are 2 kind of gamblings, COMPLETELY random and non-random but still based on chances and unknown probabilities of the outcome.

    1. Completely random gambling: lottery, bingo, raffle, roulette,etc.

    You never hear of a profesional lottery or bingo player who can make a living playing those games.

    2. Not completely random gambling: poker, black jack, sport events, etc.

    You did hear of pro-poker players, or card counters, who can make a living because they play the odds in their favour.

    The same with trading, here are 2 examples:

    1. Completely random trading: I pick randomly 10 stocks, 5 short 5 long and I will close them in 3 days automaticly. We can agree that I was gambling.

    2. Skilled trading when odds are in the trader's favour: Any kind of proven trading method what gives a consistent edge to the trader.

    Now since this thread is getting repetative, let's ask ourself:

    Is the Platypus a mammal or what??? After all it lays eggs, has a duck-billed face and venomous...*

    *It was a trick question, there is no such a thing as Platypus. I made it up....
     
    #263     Feb 4, 2009
  4. If trading was to be gambling, all outcomes uncertain, then there would no such thing as 'insider trading', as the 'insider' would never be any wiser to an outcome no matter how much information they had.



    Dackster.
     
    #264     Feb 4, 2009
  5. 'insider trading' is illegal. (CaptainObvious is trading right now so I took the liberty to state this.)
     
    #265     Feb 4, 2009





  6. Why is it illegal? Because the SEC says so? The SEC also says that trading isn't gambling.

    The 'Trading IS Gambling', lobby, seem to want it all thier own way.




    Dackster.
     
    #266     Feb 4, 2009
  7. I don't follow your logic. You can use the same analogy with gambling—buying referees, paying off players, collusion at the poker table, 'inside information' on injured horses or injured players.
     
    #267     Feb 4, 2009




  8. I don't follow your logic, you can't 'pay off' the market, because the market will react to 'news', only some get the news before the rest of the market.



    Dackster.
     
    #268     Feb 4, 2009
  9. Here's the best I can do in an attempt to provide what I believe is a rational answer:


    If by 'gambling' you mean that the participants have less influence over the outcome of the game than the market maker, due to WHATEVER reasons may be (e.g. front running, etc.), then yes.

    If not, no.
     
    #269     Feb 4, 2009
  10. ElCubano

    ElCubano

    no...while the outcome is still uncertain with inside info the odds are tremendously tilted in your favor, closer to certain than uncertain...
     
    #270     Feb 4, 2009