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. Trish

    Trish

    Maybe a trader has to justify that the word gambling condones 'without thought to risk', however there are people who gamble in the casinos successfully and do calculate the risk. Gambling sounds like loss. Investments sound like potential. So a good gambler at the table needs to change his label to investor, while a crap trader is a gambler.
     
    #601     Dec 9, 2006
  2. romik

    romik

    I only know of successful Poker players, what about Blackjack, Roulette, Keno :))), One arm bandits, etc?
     
    #602     Dec 9, 2006
  3. Again,

    properly played BlackJack observing the cumulative count not on too many decks or deep cuts...can be "not gambling"...now remove table limits and you can make more per hour...

    Folks its all about edge & time...and you do not need sunglasses, cowboy hats or beards...
     
    #603     Dec 9, 2006
  4. Wow... 66% say trading is not gambling? 2/3rds of ET'ers are in denial ;-)

    Let's review the definitions: gambling is a bet on an uncertain outcome that has a negative statistical expectancy, while investing is a bet of an uncertain outcome that has a positive expectancy derived from asset utility, growth or economy.

    And so the stock market is a continuum of gambling and investing, and into which category the trader falls depends on the rationale and motivation for each trade.

    Clearly buying a stock and holding for at at least a quarter or two because you expect revenues or profits to rise at the company is investing. The decision is asset-based and there is a reasonable positive expectancy. Equally clear is the daytrader who buys symbol ABC without regard to the company's fundamentals because the 5-minute RSI is rising off a double bottom is gambling. It is like parimutuel betting at the horse track: you like the odds because of what other traders are doing. A good horse at 12:1 odds because bettors are betting elsewhere is no different than RSI under 20. Both are temporarily oversold and you're betting on mean reversion in a short time frame.

    Short-term trading based solely on technical indicators also meets gambling's negative expectancy test. The traders odds are made slightly less than 50-50 due to commission.

    I like to think I have a clear head about investing vs. gambling. I do both of them, I'm comfortable doing them and treat each trade accordingly with full knowledge of which one is an investment (hold longer, give the company time to grow) or gambling (give the stock a short time to bounce off the support line or whatever and if it doesn't behave as expected, get out fast).
     
    #604     Dec 9, 2006
  5. If you start out with 25k and have 35k at the end of 12 months how much did you make? answer=10k

    now if you take the 25k and put it in a CD and trade with the remained...is this gambling? assuming you have no risk of leverage with a negative balance margin call?

    Michael B.
     
    #605     Dec 9, 2006
  6. romik

    romik

    "not gambling" in a casino is disallowed, poker perhaps, but also depends on luck quite a lot.
     
    #606     Dec 9, 2006
  7. In trading it is not disallowed..unless your cornering a market and I do not know how many guests are at that point, here...surly not I. and if I were close I would sit to the left of the dealer :))

    but please vote everybody...trading can be "not gambling" yes...or no...


     
    #607     Dec 9, 2006
  8. romik

    romik

    Trading based on the possession of inside information is illegal though, why? apart from all other issues it removes the "gambling" factor. If there was no element of risk (gamble) there would be no market IMO, there have to be gains and losses.
     
    #608     Dec 9, 2006
  9. Joab

    Joab

    Trading a.k.a. SPECULATION

    If trading were not gambling then NONE of us would make any money at all.

    Think about it for awhile. :cool:
     
    #609     Dec 9, 2006
  10. romik...

    your playing now...and i know what you are doing...hehe..i have read your posts and you know what you are talking about...

    you must be real lucky...:)


     
    #610     Dec 9, 2006