Is it trading or gambling?

Discussion in 'Trading' started by bobcathy1, Nov 25, 2002.

  1. bobcathy1

    bobcathy1 Guest

    IMHO I think I am a trader.
    My husband refers to it as placing bets.
    What do you think of yourselves?:confused:
     
  2. Htrader

    Htrader Guest

    I believe the word "gambling" implies that the odds are against you.

    I prefer to call myself a speculator.
     
  3. Aaron

    Aaron

    I'd say...

    A gambler takes on risk for the fun of it. It may be profitable but often they'll play a negative expectation game because the fun they have is more valuable than the expected losses.

    A trader takes on risk with an expectation of profit. It may be fun but that's not the primary motivation.
     
  4. I Like how Ralph Vince put it in his book" Portfolio
    Management Formulas"


    "The main difference between gambling and speculation is that
    gambling creates risk (and hence is considered morally wrong
    in most societies) whereas speculation is a transference of an
    already existing risk to a speculator."...Ralph Vince
     
  5. Tell him you are in "risk managment", that is what I used to tell everyone. :p

    The only problem is if you tell people that at these christmas coctail parties exepect to find yourself stuck in the corner with the accountants and actuaries. Dullsville. :(
     
  6. catman

    catman

    It all depends on how much you mitigate the risk.

    If you don't look both ways before you cross the street, that would be gambling. If you don't stop at a red light, that would be gambling.

    If you work hard at trading, study, adhere to the rules you set forth, that would be speculating (trading)

    Much in life has an element of risk...The key as to whether something becomes "a gamble" or not has much to do with mitigating that risk.
     
  7. daytr8r

    daytr8r

    if you were a good trader you wouldn't need to ask this silly question.
     
  8. If you were a good person, you wouldn't be bashing peoples
    questions! :mad:
     
  9. bobcathy1

    bobcathy1 Guest

    So, why did you read it? Guess you have nothing much on the brain today either?
     
  10. whowah

    whowah

    found at
    http://www.merriam-webster.com/cgi-bin/dictionary?book=Dictionary&va=gambling

    One entry found for gamble.


    Main Entry: 1gam·ble
    Pronunciation: 'gam-b&l
    Function: verb
    Inflected Form(s): gam·bled; gam·bling /-b(&-)li[ng]/
    Etymology: probably back-formation from gambler, probably alteration of obsolete gamner, from obsolete gamen (to play)
    Date: circa 1775
    intransitive senses
    1 a : to play a game for money or property b : to bet on an uncertain outcome
    2 : to stake something on a contingency : take a chance
    ----------------------------------------------------------------------------
    There is no reference to the mathematical expectancy of the game, nor is there a reference to morality, just the fact that a game is involved and that the outcome is not certain. The outome is of couse uncertain in the market and if you consider this a game then , yes it is gambling.
     
    #10     Nov 25, 2002