Topic: Can trading be likened to gambling and how so? - page 5. (Read 1397 times)

In gambling, weak opponent can turn match in their favor and statistics are there to give you an biased opinion. After searching all necessary info, your biased opinion will lead to confident prediction but bookies will consider all possible outcomes on odds with higher margin. Trading is more about skills, management unlike gambling that based on your luck 90%. I know only few successful gamblers while countless professional traders live their life based on trading income. Gambling money can be lost easily if you chase losses while trading is all about money management to cut losses and let winning trades print $.

I think it would be useful to expand a little bit on this. Why does trading produce considerably more emotional stress than gambling?

I would say that is because there is much more decision on the part of the player/trader. In gambling you place your money and you get an outcome almost instantly. In trading you can leave your position running for seconds, minutes, hours, days, weeks, etc. You are the one who makes the calls - where to take profit, where to cut the loss, when to add to the position and when to hedge. This is on top of the analysis that (I hope) precedes your trade decision.

Even though some traders tend to be greedy most times in their trades, we can not compare their experience to that of real gamblers. Traders may encounter losses as a result of the current market situation not mostly greed, emotion, lack of experience, or their inability to follow the chart information but gamblers are well known for their habit of wanting to accumulate and take excess profit in a game or bet that they no not the history or related future outcome. The only similarity between trading and gambling is the word loss, in trading when the market situation is down you lose and in gambling, the loss is a normal thing.

Trading does have rules and analyzes that are made to predict prices that will occur later.
but gambling also has rules, Those who are professionals at gambling always have rules about how to manage their money for betting and what not to do. Some of them also just do gambling without thinking, there is no management and are more likely to be addicted, so they don't know the direction and purpose.
Trading and gambling both have rules and risks.

The question reminds me of Mr. Goxx trading cryptos. These who don't know Mr. Goxx: It was a hamster trading cryptos. And he made some money!

So yes, trading may be some sort of gambling. It depends how you trade. You may follow an "influencer" like Mr. Goxx or decide to buy cryptos just because you feel something warm about it. Then it's gambling.
Sometimes even this kind of investment may be a good one. But everyone should know about chances to fail. If you begin to apply methods to move chances, the gambling factor will shrink and your actions consist more and more some sort of trading factors. But gambling somehow resists, just because we are not able to predict future. Maybe gambling is not the right word in this situation. I'ts more like guessing or prediction. And the key will be a appropriate timing. Just moving chances on everyones personal side. Step by Step.

Risk and emotional stability. Both have the same structure to comprehend.
There are different games in gambling though, some need analysis and some are just pure luck base or mathematics.
IMO, trading has more emotional stress than gambling. Perhaps being in the industry for long will take away the fun in it while it doesn't in gambling. The entertainment stays especially in sports betting.
Trading became a living.
Gambling was more "risking" and adding excitement to the game.
So it's a no for me as a comparison.

Trading and gambling are indeed very subtle, the difference is that when we trade, we must have a plan in advance, so that we make transactions according to the framework that has been created, so everything we do in trading is as if there are rules in our opinion, this is different from gambling. who don't know the direction and purpose of making transactions, even the risk and reward don't seem to be taken into account first

it seems you have to understand very well what the definition of gambling is so that it will be clear the difference between trading and gambling.

because it is very clear that a trade is not gambling. if we understand the characteristics of gambling.

I will take an example with the definition of a gambling game. A game / thing that is included in the gambling category is when we do not take part or do NOT cause an impact in the game being held.

Example  :

-ball game,
We are players in the ball game and of course if we want to win then we have to train hard, improve skills and so on. so that our chances of winning can be greater if we can play well. (this is not gambling because it is directly involved in the game so our skills have an impact on the outcome of the game)

Now the next thing is if we are not players or do not participate in the ball game and of course we do not have a direct impact that affects the ball game on the field, but we are only spectators and we analyze the skills of players and teams in the football game that we watch. and we guess which one will win and which one will lose. then we bet on which one of the teams will win from the results of our analysis. (this is a gambling) .

if you understand this. then clearly trading cannot be called gambling. because when we are trading, for example we buy 1000BTC then our purchase will have a direct impact on the BTC market price which will rise (we participate in moving market prices / not gambling) .
different from gambling where the money we bet will have absolutely no impact on the market price. our example is doing a guessing game the price of BTC will go up or will go down in the next 1 minute. then we bet 1 million dollars to predict the price will go up. Well our bet will not affect the market price at all. and this is called gambling.

very clear. we analyze the market and trading techniques are so that we become reliable traders. just like a soccer player who trains with his playing skills to become a great player.

then traders and football players are not gamblers.

hope you understand

There are still many people who equate gambling and trading, even though they are two different things. Most people equate gambling with trading,
I'm sure these people trade without learning about trading first. Because for people who already have knowledge about trading, they can definitely
distinguish between gambling and trading. In fact, I have found that many questions have been asked about the difference between gambling and
trading. We can even find the answer easily on the internet, so we are no longer confused that trading is not gambling.

In my opinion trading is when we can fully control our money after we put up our money, meaning we can sell or buy again at any time to be able to
make a profit. Whereas when gambling if we have put our money in a gambling game we cannot control the money that has been deposited. This means
that our money will double if we win and if we lose we will lose all the money we have deposited. After all, whatever strategy we use when gambling,
in the end it is only our luck that determines. While trading we can rely on our analysis and knowledge to determine strategies that can make us
generate sustainable profits.

I also think they are two different things. trading requires more skill and analysis. and it's all learned and we can use some tools to do it. maybe slightly different in futures trading. I see it, almost like gambling in any other form in the crypto market. although you can use market analysis, the possibility of greater risk is in futures trading.

What happens is that when you gamble the outcome is still completely random regardless of whatever you do to try to improve your chances of predicting what it is going to happen, but when it comes to trading if you have a good strategy then the chances that you can predict with a higher degree of accuracy what may happen next can be really good, this means that you can become profitable with trading, something that is incredibly difficult to do if you try to do the same with gambling.

This is a nice question from my perspective. I believe that trading is not a gambling because it have it own way of moving and calculation. Because it mostly use technology and wisdom initiative to study and the verify it's way of making profit but when looking at gambling it is not applicable to it, because gambling have another denomination of it calculation and the prediction of them. so I believe that there is something different between both from my explanation

On things that you dont have any idea on what you are doing and specially dealing off with money or real funds then it is really actually be considered to be gambling even you do make yourself get engaged in trading.

Imagine on things that you have been doing but doesnt really have the idea on what it is or even knowing or doing the basics then you would just simply thrown out some decisions without basis and knowing trading
which does really need that analysis so that you could really able to make a good position and ending up profitable but if not then expect for these outcomes to happen.

If you do like for you to have better chance on having profitable trades then you should do analysis and do make out some research which you do hone up your skills with the
experience you do get along the way.

Yes, basically both gambling and trading have their own risks. But the only difference is that in gambling, the outcome is more uncontrollable. Even if you think you have made your best bet, but the result still goes the opposite. While in trading, provided that you have good experience and well managed strategies that have proven useful in most of your trades, most likely the outcome is very positive. Although there are also number of gamblers who create fortune through betting, but most likely its more on trading that gives us a good living.

Well in short, --if you don't have knowledge in trading it will turn out to be gambling because you are more on guessing rather than having analysis for your possible position. The same on investing in meme coins which you don't know whenit will pump and you know the characteristics they have no real use and the price was based on the community. So if you invested it, you gamble your money, and the chances of winning are quite low and it is a high risk.

Trading and gambling are closely related but they are not totally alike. While gambling mostly end up in losing, regardless if you are a pro or not, losses will always be inevitable. However, trading becomes more like gambling too if you only trade without setting a target. Its like you only trade because you feel so, because you think the market is good to trade, but without good market analysis and real strategies to gain, your trading will always end up like gambling.

It was the casino games are the ones that entirely depend on luck but if it was sports betting, you have a team or a player that you can analyze if what are their skills. From there you can make a prediction if who among them will perform better during the match.

If they will just trade like they are gambling then why can't they play gambling instead? They can gain certain benefits through it like cash back and any loss or win can contribute something to level up their account which they can then get a reward and most importantly is they will get entertained but if they want to earn a profit then trading should be the way and they must take it seriously.

Gambling and trading have two broad path that will never cross each other. For gambling you make predictions based on past performances, Strength of the team especially in soccer but for trading past trends repeats its self and if you make predictions based on the market trends it is always difficult to record more losses than profit. The only time gambling and trading share similarities is if the trader places a trade without analysis

Yea, they have similarities when it comes to risks but they both work in different ways. Trading can be profitable if we are skilled enough to do it while gambling can only be profitable if we get lucky on it. For me, trading has a bigger assurance of getting a profit especially if we know how to apply the different strategies based on how we do technical analysis. It needs more logical and technical understanding compared to gambling.

If you open trades based only on your intuition and not on technical analysis, your strategy will be comparable to a casino. Using risk management, you can significantly reduce the risk of losing your deposit. And if the trader does not adhere to this, then his strategy will be comparable to gambling and as a result, there may be a dependency that is inherent in gambling.