hello all, some say financial market is a giant casino, and most people agree with it. so are traders gambler or more than that? give your opinions
What useful purpose does is serve to you or anyone else, what your, my or anyone else's opinion serve. None, whatsoever, right? The main reason why majority of trader's fail is the fact, they have opinions! Here's a little tip, which will help anyone with their journey to consistent, successful trading. "An EDGE is the exploitation of a proven FACT". So, what FACTS do you know about the market? If you don't know any facts. Then, you are a gambler. When betting at a casino, the odds are in the houses favor, which is why I don't gamble at casino's. In trading, because I deal with facts only. I thereby have a edge to exploit the market. Thus, I'm the house, and the odds are in my favor.
For many traders it may indeed be gambling. On the other hand, the traders that work hard and analyze their systems are playing according to probabilities, so it surely is not gambling. Read any book written by successful traders such as Marty Schwartz or Victor Sperandeo and they bring up this topic briefly. They refute the claim, however, because they play according to rules that are designed to give them the percentage to win. They are not the house btw... With the logic that every form of trading is gambling, that would make any life decision a gamble.
If it's gambling it's a lot cheaper than betting on the horses where the parimutuel take on a win bet is around 15 % minimum. State lotteries take 50%. Hell the mafia take was less than that ,but you had to get out of the facility with the money. Big winners had to be very careful. Since I don't believe anyone can reliably predict the future every trade has its gambling proportion.
you are right monty,crossing the street is a gamble,your eyes,ears,nose give you an edge,take those away and see how scary it is,trading is gambling,less of a gamble with an edge
I think I'm quoting Sparandeo who said gambling is taking risk with blind odds(lottery etc) and trading is taking risk when the odds are in your favor. Very true.
Markets are the pinnacle of human emotion. They are what we hope for and what we fear most. To understand the market you must look inside and understand yourself and to a further extend human nature in general. Master the mind and you can master any market. A casino is not even close to the same thing. As long as there is someone with better odds than you on the other end it is gambling. Like someone said earlier "Not everything with risk is gambling"