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. Mvic

    Mvic

    In as much as gambling is playing the odds then trading is gambling. The difference between trading and most other forms of gambling, like the casino and the lottery for example, is that in trading you determin your odds by the strategy/edge you trade rather than having the odds stacked against you by a house or bookmaker. Traders who do not get this may as well be playing their money on the roulette table.
     
    #521     Apr 8, 2009
  2. nysestocks

    nysestocks Guest

    In effect - you must become the casino, not like the idiots who throw money at the vacuum cleaner all day, and night:eek: , long!
     
    #522     Apr 8, 2009
  3. Mr J

    Mr J

    I'm amazed I opened this thread again.

    If there is no certainty, then IB would be at "variance's mercy". Risk management is most cases isn't about removing risk, it's about minimising risk to such levels where failure or even large drawdowns become an extremely unlikely occurance.

    You talk as if your operation and others like it have no risk at all. That's quite ignorant.
     
    #523     Apr 8, 2009
  4. nysestocks

    nysestocks Guest

    You forgot a few other "words" that I use to describe them, and which has been proven correct, time and time again:D

    As long as we have idiots to enable them, they will run the vacuum hoover till the cord breaks:p
     
    #524     Apr 8, 2009
  5. You cannot seem to relate to fact...
    That IB has a very low risk business model...
    And just sailed thru the biggest Financial Crisis in a 70 years...
    While continuing to post profits.

    My firm has as very similar risk profile on a smaller scale...
    And is posting record profits 2007-09

    This is not rocket science...
    But just sticking to CLASSIC Market Making and Relative Arb techniques...
    And understanding how to build Market Neutral hedges and baskets and Portfolios...
    Whether on a small or large scale.

    Nothing is stopping you guys from doing this...
    Learning how to do this...
    But I suppose it's much easier...
    To make bizarre statements about claims of "no risk".

    This is like Obama saying...
    We have a "choice" between "unlimited risk" and "no risk"...
    Between spending $8,000,000,000,000 or "doing nothing".
     
    #525     Apr 9, 2009
  6. Trading is gambling - so what! It isn't a business per se either - running a fund that involves trading is a business. Get real.

    That said, I've made a nice living for a number of years as an independent trader.
     
    #526     Apr 9, 2009
  7. ElCubano

    ElCubano

    you can determine your odds??? or do you mean you can determine the risk you would take?
     
    #527     Apr 9, 2009
  8. Mr J

    Mr J

    I didn't say it wasn't low risk, I stated that there was risk involved. My point has been that there is always risk, and therefore chance, variance or whatever you want to call it, is always a factor. You seem to be confused.
     
    #528     Apr 10, 2009
  9. Hey, riddle me this...What separates a losing trader from a losing gambler?

    Correct me where I'm wrong, but.... When Trading, one doesn't need to be "right" about a given outcome, but with Gambling, how can you be wrong about the outcome, but win the bet?
     
    #529     Apr 10, 2009
  10. Yeah... it's like playing blackjack while counting cards.
     
    #530     Apr 10, 2009