Is trading Gambling or not .."What say You" Vote here.

Discussion in 'Psychology' started by ElectricSavant, Apr 10, 2005.

Is Trading Gambling or not

This poll will close on Jan 12, 2060 at 11:25 AM.
  1. Gambling

    460 vote(s)
    35.0%
  2. Not Gambling

    854 vote(s)
    65.0%
  1. themickey

    themickey

    Fishing is like gambling, everytime I go out I lose something, knife, gear, you name it.
    Whenever I stroll down to the boatramp for a rubbernecking exercise nearly always find something that someone else has lost.
     
    #1191     Feb 7, 2019
  2. ElCubano

    ElCubano

    When an outcome is not guaranteed it is taking a gamble. Some outcomes are more likely than others making it less of a gamble. ie. Crossing the street is a gamble but if I look both ways, cross when the sign says so and do it fast your chances are pretty good. If you jay walk on a busy street trying to get to the other side in a hurry not looking both ways lowers you chances of making it across in one piece. And you still have a chance of the car hitting you while standing in the corner (black swan) . Some traders are looking both ways some traders don’t look at all. In the end though it’s a gamble since you really can’t garauntee that the string of trades your holy grail spits out will make you money.

    And yes one can say lots of things are a gamble. Driving a car, riding a bike etc.
     
    Last edited: Feb 7, 2019
    #1192     Feb 7, 2019
  3. schweiz

    schweiz

    EVERYTHING in life is a gamble. The only certainty we have is that we will die. That is already a certainty from the moment we are born.
     
    #1193     Feb 7, 2019
  4. mlawson71

    mlawson71

    In my opinion, if you don't know what you are doing and if you trade on a whim then you're pretty much gambling.
     
    #1194     Feb 7, 2019
  5. ElCubano

    ElCubano

    Yes but all gambles don’t have the same probability of failure. Considering trading has very little winners that are consistent over time makes taking 10,000 trade a higher probability of failure than crossing the street 10,000 and getting hit.
     
    #1195     Feb 7, 2019
  6. NQurious

    NQurious

    The problem with this debate is that "gambling" appears to have attached to it an unsavory connotation. Few would want to be labeled a gambler, as "gambler" appears to many to be perceptually synonymous with "degenerate."

    This whole discussion is best approached from an understanding of risk. The insurance industry has a fair grasp on this, most would agree. Risk is simply the uncertainty or chance of a loss occurring. There are two types of risks: Pure, and speculative. Only one of which is insurable.

    A pure risk refers to situations that can only result in a loss or no change. There is no opportunity for financial gain. This is the only type of risk insurance companies will insure.

    Speculative risks, on the other hand, involves the opportunity for either loss or gain. An example of a speculative risk is gambling. These types of risks are not insurable.

    Any insurance actuary, agent, or executive will tell you that speculating in the financial markets is a subset of gambling. Insurance companies will not insure you APPL stock position against loss. Hence the options market.

    Trading is not gambling only if 1) there is only a risk of loss or no change, but no chance for profit, or 2) if every trade was a sure thing with no risk of loss. If you trade and if you take losses, then you are a gambler.

    You may also be a degenerate.
     
    #1196     Feb 7, 2019
    traderob and themickey like this.
  7. schweiz

    schweiz

    Probabilities can be influenced by a lot of factors. A blind man crossing the street has more risk then the average person. Which means that removing all blind people will increase the probability in your favor.

    If you are a trader with:
    • a higher education
    • good analytical skills
    • 10 years of experience in trading
    • a very good system (in simulation or backtesting)
    • very disciplined
    Your "gamble" will have much more probability to end profitable then the general probability of joe average winning.
     
    #1197     Feb 7, 2019
  8. ElCubano

    ElCubano

    Exactly what I wrote 2 posts ago . Did you read it? In the end wether hi probability or not YOU can’t garauntee the outcome.
     
    #1198     Feb 7, 2019
  9. ElCubano

    ElCubano

    And yet I’ve met people who know not one iota about the market who may have made more money than most of the savvy traders on this boArd. That’s the gamble part of the whole thing.
     
    Last edited: Feb 7, 2019
    #1199     Feb 7, 2019
  10. TommyR

    TommyR

    no gambling companies regulate themselves much better and are far more legitimate than brokers. their rules are very clear. everyone can see if they don't pay on a bet and they are at risk on credit so have to price it correctly.
     
    #1200     Feb 7, 2019