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

Do you need to control risk when "Not Gambling"?

Have you voted in the poll here?

ES

 

I think this whole thread really comes down to the definition of gambling.

everyone's definition/perception of the word will be different.

I vote that it is gambling because there are always unforeseen risks. Order execution, slippage, broker errors, platform errors , broker going belly up.

Edit I guess limit orders would take care of order execution, but platform errors can happen.

 

so the only way trading can be anything other than "Not Gambling" is because of things beyond ones control?

ES

 

Gambling is the wagering of money or something of material value (referred to as "the stakes") on an event with an uncertain outcome...

http://en.wikipedia.org/wiki/Gambling

So IMO anything with an uncertain outcome is gambling. Platform errors , broker errors ect. create uncertain outcomes

 

Also, if im counting cards in a casino, yeah the odds are in my favor and some may not think it is gambling . I say it is gambling because you could be down a few grand when you get caught/kicked out. Uncertain outcomes come in many shapes and sizes.

 

So "not gambling" is merely a mental state of mind?

For those of you that have not voted...Please vote now...what say you?

ES

 

Profitable trading is like counting cards in a game of black jack.

Which is no more gambling than operating a casino - the odds are decidedly in your favor.

/thread.

 

So only profitable traders are "not gambling"?

ES

 

Over the long-term, yes.

In the short-term, beginners luck or one-way markets account for traders who will eventually lose...

 

Still stirring it up ES

My take on this varies a little and isn't simple - because trading and gambling are closely linked by some definitions but the differences between professional trading and amateur gambling are important.

Same:
In both cases you put up money that you will lose in return for the opportunity to keep your stake and win more.
In both cases its about probabilities and when you begin a trade/gamble you don't know for sure whether you will win or lose
In both cases the game can be simple or complex after entry with simple exits or complex trade management/betting.

Different:
One is done for a thrill; the other to take profit over time.
One is addictive and often fun; the other less so and more likely to be satisfying than thrilling
One is based on impulse, emotion, and intuition; the other on discipline and often (at least to a large extent) is rule based.


I do accept that the professional trader and professional gambler are extremely similar people. IMO the trader can get an easier and bigger edge but maybe it isn't that easy.

The other difference is that trading can make a contribution to business/society because it facilitates price discovery and can provide liquidity required for the markets to be effective.