I know a real estate broker who's losing value consistently. He sees about 10 potential clients a day, and with each one he's got expenses with gas, cell phone time, and just opportunity cost over all. It's been 3 months and he's gotten NO sale out of about 100 buyers he's talked to. That means a winning rate of 0% so far. Now does that seem like gambling? He's running his business with an expectancy of way below 0. Might as well go waste it all in Vegas.
With gambling you bet against the odds. Any decent trader will trade with the odds - that's the difference.
Interesting that when they put together the ban on Internet gambling that they specifically left out the securities trading business. If you're regulated by the SEC or CFTC, then you're exempt. Makes one wonder? c
I didn't know they were, if anything I see more benefit in trading through a spread bet firm, if you are a UK resident. CFDs are pretty much like futures but on stocks where you put up a 10% margin, in spreads you have a margin which is a variable multiple to your stake per point, on S&P $50 per point x 50 (IMR) = $2500 margin per $50 stake and no Income tax, earnings from CFDs are taxable.
Any business venture is a gamble if you manage the venture badly and don't do all you can to develop expertise in your chosen field. Trading is a business venture like any other and, if taken seriously through careful planning and risk management, is not a gamble. The gamblers in trading (or any other business) are those that take too much risk with their capital and focus too much on what they could gain instead of what they could lose. Thanks Damian U.S. Share Trader
Darn good post...if only the few "friends" here on ET would understand that this is just a business, with individual rewards and risk based on the person's own choices. Good job! Don