Topic: Flip or Trade? What’s The Bigger Gamble? - page 2. (Read 1753 times)

The difference you pointed out between trade and gambling is very important. All of Tom, Dick, and Harry seem to mix them up, even though their main ideas are very different. There are risks in life in general, but investing is a planned one, right? Traders plan their next move by looking at data, figuring out the odds, and guessing what will happen. What are the odds? They are managed to work in their favour by analysing them very carefully. At the same time, bettors throw their coins into the abyss of chance, hoping very hard for a jackpot.

What you said about casinos and the stock market is right on the mark. In their most basic form, casinos take money from people who want to play by using games that statistically guarantee loses over a long period of time. On the other hand, the stock market is more about taking measured risks with a strong understanding of the basics. There is no such thing as luck in this; you have to do study, understand trends, and make smart choices. The desire to make quick money versus the skill of strategic money management: two paths, two results.

It's not only a matter of luck. If you are a trader then you nedd to make some researches and use your trading skills to make a decision on whether to buy an asset or to sell it because you expect its price is going to rise or fall. But when gambling, you just chose either up or down and rely purely on luck.
The above doesn't mean much, what really matters is that when you gamble you are supposed to be having fun regardless of whether you win or lose but when you trade you are expecting to make some profit.

  Gambling and trading are two different concepts. Across the world, across ages making money quickly is considered gambling I will put it this way. Anything and everything you’re doing in the world is gambling one needs to understand the concept of probability pertaining to various jobs. But the fact remains, when one is gambling the odds are not in your favor. But when one takes a trade or invest, he is taking a decision based on the data he has at his disposal the best trader/investor are the ones who enter into position when the probability of success is high. The trader who do not analyze data before entering a position tend to lose money. Whereas its is the exact opposite when it come to gambling. Gambling is strictly base on luck even when the smaller odds are best possibility of winning.
  Casino games are designed to have a negative expected return. If you play games in a casino, then over time you should be expected to lose money. This is because the casino has set the odds so that you will lose money more often than you will make it. You are a customer paying them to experience risk. The stock market as a whole should have a positive expected value. If you passively hold onto a broad market index of stocks, you should make money over time. This is why the stock market exists- to give investors a positive return in exchange for taking on risk. In fact, in the stock market, the companies who issue stocks are basically the customers and they are paying you as an investor to take on risk. This is in contrast to the casinos. The fact that both of these institutions exist is kind of interesting. The stock market (like insurance) functions because people are, by and large, risk averse. Casinos function because, every now and then, people want to actually pay money (by losing it) so that they can experience risk.

Yes you are right that mate gambling and trading are not the same in all aspects cause trading is you can earn money  and Also its matter on knowledge while in gambling as we all know that the only thing they need to do in order to win in gambling is  they will pray that The brought thier luck, cause in the world of gambling luck is the only way to win a good amount cause when the gambler don't have his/her luck then they can't win.

maybe the reason they want to compare these 2 is to get assurance from the community that trading is seemingly like gambling as well. but if you are equip with good amount of strategies, skills and experience, you will do good in trading. however, how long you are playing with gambling esp those luck-based games, it is still your luck in play to win with your games.

I totally agree with you on this and to be honest with you it's becoming a bit annoying reading posts comparing trading to gambling. There is no similarities between them at all except the fact that you may win or lose but this is the case for any other king of investments or where money is at stake. I won't be surprised to see traders who believe trading is the same as gambling lose all the time and don't make any profit.

Not really that totally a discussion after all on which we do really know that it isnt really just the same.Yes, both could have that risks but the level of risks would really be entirely be different plus
we know that gambling is for entertainment and trading is for money making/business/investment or whatever you do call which correlates to it on which it is really that needing that serious approach if you do want to succeed but of course this wont really be that so simple that could really be achieved on which considering that risks  is still there but it is really that much more better and more worth
if we do compare on gambling games.

Flip or trade? It would really be according into your own interest because leisure time and business/investment kind of dealing will really be totally different when it comes to approach.
Trading would really be just turning out to be a gamble if on the time that you arent really doing any analysis to it which we know that it do really require or needed up such
action for you to take advantage and able to handle yourself on an unpredictable market.

There's much difference in the two just that the similarity gambling and trading shares is in the risk-taking and they both doesn't approve of emotions while taking action towards it. Emotions can make you make mistakes that ordinarily with a standstill and calm mind you won't dare to make when executing either of them.

When playing casinos games like slot machine games you realize that it's not same way you engage in it that you do with trading. Slot machine games doesn't require you to be equipped with master skills and strategies but good luck for you to win or have streaks of winnings but with trading you need all the necessary skills and strategies to put you ahead of the market else you are definitely with no winning chance. And that's the big difference between gambling and trading when we take the risk and emotional aspect from it.

I don't know why there are still people out there who think that gambling and trading have the same thing even though it is very clear that they all look different in any form and from any point of view there is nothing in common at all, except for the risks which may be almost the same.
If there is choice wise person who can manage finances will definitely choose to trade because it can be predicted and calculated more accurately, every profit and loss that will be obtained is very different from gambling where everything is uncertain.

Yes, but that's only for gambling. When you are trading, and trying to recover some losses, you might be able to do that if you do it in the correct way, by doing research and analysis and making trades where you know you won't have a lot of risks.

I don't agree with that, trading and gambling aren't alike in any way, even if it's about patterns or anything. There is no pattern or anything when it comes to gambling, it's all luck that matters. So this long running arguments of comparting trading with gambling is not at all making any sense at least in my perspective. Trading is good which means anyone can go for it.

No, you can't do anything to maintain a high winning rate in gambling, you can only try and reduce your losses if you gamble responsibly and that's a different thing.

For the fact that,  gambling have no draw down rules that can and should be followed just like we have workable rule for trading,  that alon make both incomparable and largely different to each other in terms of their operations and realities,  some time we may feel that both gambling and trading are same in practice since both have almost similar risks and available measure of unpredictability of the future outcome,  only that similarity alon os not enough to categorized both into same or being on the same pages at some point.

There's risk in anything that has to do with gambling, so we should probably stop looking for the safest way by choosing the ones we think are more easier and safer to play, if we are gambling, there's no way to avoid the benefits and also the risk involved, those that are into trading also knows what they face in doing so, we should desist from making much comparison that one is better than the other, they all have risk and the more we are after avoiding loosing the more we continue to accumulate the losses.

With uncontrolled emotions everything will become a mess. As in gambling, of course someone who plays gambling but cannot control their emotions will experience continuous defeat without realizing the many losses that have been lost because of gambling with emotions. if they cannot control their emotions and control themselves this will bring disaster to that person, with the many losses that are lost will cause them to be miserable sooner or later. I think most people are like this, they play without a good mindset until all their money is gone.

Gambling and trading are not much different, and both of these things are inseparable from discipline, if they have a disciplined attitude maybe they will be able to limit their gambling games and not fall deeper which will harm themselves in the future. But in my opinion it is better to trade si than gambling, if trading can still be called an investment because if you do it with the right knowledge, of course this will be profitable. Unlike gambling which in my opinion does not need deep knowledge, just place a bet and wait for the best round to make a profit, but it is inseparable from luck.

When we are chasing loses, there is bigger chances of us losing more because emotions will always drive us to do somethings we are not supposed to do on an ordinary level. Gambling and trading are almost alike when we look at the patterns and how easy people quickly fall and become victims of bad day when they chase there loses. If we can uphold ourselves and make trading plans with discipline, we might not become a victim of unnecessary loses because we will want to stick to our trading plans.  Whether we are gamblers or traders we need to do what we ought to do to maintain high winning rate.

Trading is very different from gambling. Your job is done! Sports betting and futures trading have a "science" behind them. You have charts, data, history, etc. Besides luck, it's all about strategy

Now, how about some gambling games? Totally different game. You can't forecast a roulette move with a chart, can you? You can't. In trading, you've got tools, tools, tools. You have history and data. Analyze, forecast, strategize. But in gambling? Just you and Lady Luck. She's fickle. Gambling and trade are different, although some features are comparable. Remember, always play it smart, whether you're betting or trading

The similarities between gambling and trading are only between sports betting and futures trading because, in both of these, there is knowledge and experience required, you have the risk of losing your money if you look for higher rewards, but you can get profit if you settle with smaller odds in both sports betting and futures trading. So, these two have some similarities but when we talk about gambling games, that's nowhere near trading if we compare them both.

Gambling games don't allow you to read charts or analyze the available historical data to at least have a general idea of where the market might move next, but in trading, you have got this option readily available whenever you wish to take a trade and this helps you gain an advantage over the market while a gambler can never have an advantage over the gambling house.

It is really difficult to recover from a trade if there is a loss in trading because there is no exact guarantee when the price of that currency will rise. Also if the person does not have patience even after increasing the leverage then there will be high risk. Trading should be viewed from the point of view of a business as a business has income and expenses trading income is profit and expenses are loss we must maximize our gains and minimize our losses.

Yes, I agree with you or it could be said that to gamble, a beginner only needs to bet on something he wants, for example a casino game, even though it is the first bet, many beginner gamblers are lucky when betting carelessly on a game and if it is done in a beginner trader's trading may really need research skills before starting trading.
What certain is that if we talk about the differences in gambling between trades, they are very different, even though some people say there are similarities between the two, but if we understand in depth there are many differences.

And this is where your gambler like kind of behavior or mindset kicks in on which i would say that its never been that ideal specially on trading.If you do apply that kind behavior then you are really just that simply doing gambling and this is something that not really recommended on this space. If you are really just that planning on doing gambling in the first place then you shouldnt really be touching trading because this is an another space on which you cant really just joke around and do reckless things because this do really talks about money. Risks is there but not as much when you do deal with gambling.
So its up to your choice on what you would really gonna do.

Trade could really be a bigger gamble if you dont really do the right thing to do and this is why you should really be that careful on what you are dealing with specially we are talking about risking capital or money.
If you are really that heading for long term engagement then trading would really be the key but if you are really just that going for entertainment then
its up to you considering that gambling could really give you that.

because the bad team mostly think like this:
if they face losses between some wins and lose in something like 2 trades consistently, which causes them to increase leverage take high risk to quickly recover that loss in short time.
Most traders don't have enough patience to wait and recover lost amount slowly, they try to recover loses in one trade and eventually following this pattern they lose more and more in the end.