Topic: Gambling vs. "leveraged" trading - page 5. (Read 1348 times)

No, I won't go with gambling, you will not make money from gambling. I choose for leveraged trading because I can have a chance to make money and I know it will be a big profit in that trade. But yes, I need more knowledge and skill to make money from leveraged trading and I am sure I can learn from many tutorials. And for the account, I think I only register on one exchanges and leveraged trading is different than arbitrage trading.

Gambling is simple, you do not need to study it hard because in the end you'll still rely on your luck.
You win some, you loss some, that's gonna happen, but don't expect you'll have more wins than your losses as gambling is not build that way.
If you win big and you stop, then maybe you can be profitable, but most of us will still continue, we think making money consistently is possible.
So eventually, we will still gonna return our winnings and sad is we will be down again.

This is different from gambling, the only similar is the risk because you need to risk your money to make money.
Its's not easy, but unlike gambling, your chances to be successful here is way higher.

So you need to apply different approach on two, if you want to do both.

Closer yes, but still a long way from Gambling. Margin trading is simply another tool to improve returns or use money for another purpose when you don’t want to cash in you stock. Want to buy a car and not cash in stock to do so? Use margin. Is that gambling? Want to sell a stock short? Use margin. Is buying a stock to go up not gambling but selling because you think it will go down is gambling? Want to sell a put to buy a stock at a better price and get paid for doing so? Requires margin. Not gambling. Want to buy high yield junk bonds but 8% isn’t enough for you, so margin it up and get 17%, now that is gambling.


You can’t use margin for penny stocks or any stock under $5, for IPOs, not supposed to for purchase of mutual funds. So there are rules to keep margin out of risky investments, but you can still take on more risk with margin than without. But in trading you have uncertainty but you also have a certain amount of control. In a casino, the lottery, a horse race., that is gambling. The odds are against you but if you win you get a big return. In investing the odds are with you and the returns are smaller and realized over longer periods of time. Like so many things, margin can be abused, and it makes investing a little more of a gamble because the risk often increases.



 But it is still a lot different from gambling. For example, I do gamble at Vegas Casino and that’s how I got to  know that there is always a big difference between the two.  I do use that casino because of their high deposit bonuses. When betting, there is an already predetermined odd/risk set by the bookie but, at leverage gambling, you have to set your level of risk by yourself.
Trading is gambling if you don’t know what you are doing. Trading with a margin account is necessary due to the nature of these markets. You need leverage to amplify your gains otherwise it wouldn’t be prudent to trade. The big boys have the capital to make enough profit for their time. The average trader needs a lot of leverage to do the same thing percentage wise.


This is why the less capital you have the harder it is and the more challenging and also why the big boys have such an easy time knocking 95% of the retail traders out of the market with a very small move.
A trader that is aware of what leverage can do for him may tend to increase the size of his trades as losses accumulate, hoping for a recovery in the very last moment. This approach can only work against the trader, and usually leads to margin calls and huge losses in trading accounts.


Leverage does not spare any trader from learning HOW to trade – a bad trader will continue to be a bad trader regardless of a possibly lucky trade made on high leverage that brought him a temporary big profit. High leverage creates an “everything is possible” illusion, which hides the enormous risk associated to this kind of trading.

I get your point mate, with gambling you can easily play the game without considering anything, just simply play with your luck and if you win you can enjoy your earnings yet when you lose you will go and move on knowing that you play inside gambling, while in leverage trading where you use your
knowledge and try to sort things out, when you lose you will always think about it and stress yourself as you've done what is needed to assess the next movement.

Ill go with gambling . why ? simply because i can easily understand its mechanics and i can start as early as possible even if i only have a small capital .  gambling is also more benficial imo because many sites nowadays do offer jackpots and other goodies .

Leverage trading on the side may seem a bit confusing to me but i know that this one can provide more succesive income than in gambling  .

I'm not sure on what basis you are ready to treat these two as the same things. Even gambling and leverages trading are having many similarities, definitely they are two different things and they both need completely different approaches so that we can get what we actually aiming for.

Gambling is known for its easier nature and anyone can start with it when they are having very small to no money to spend with whereas trading requires lots of hard work on strategy making and continuous learning about knowledge and remembering old events (which are not at all required for gambling). You may choose either one based on your preferences but definitely NOT imagining these are alternate to each other.

All the gamblers do not need to be a trader and the vice versa is also true because gambling and trading are completely different fields that is the reason they require completely different set of skills and these are existing for different purposes so choose the right one for your needs and you may go for both at different time but definitely with different mindset and skill set.

I don't agree with this post.

Yes gambling with dice or blackjack can be more "fun" however its basically "gambling" and there is really no method except luck. With trading if you got a few years experience you can filter out the trades which are most likely to work. And if you got a good risk/reward ratio then you are way ahead rather than just tossing a dice roll.

With dice you can't really do this because each roll is completely independent of the prior. With the markets its different. Especially if you are trading in a strong bear market like we are right now and you are only going short, you got the trend in your favour, with dice you don't have that advantage.

In any kind of trading and gambling greediness can be a killer of your stash. Both are risky, both can be tricky as hell, and both can take your money away or earn you a lot of money. I will go with gambling, much easier, much less bothering, leverage trading require special skills, you need to be active a lot, you need to have accounts everywhere, basically you earn of fluctuations in exchange rates between two different countries, now you figure it out how to do it, with gambling you have much more fun and its much easier.

I think trading & gambling should be 2 separate entity. I believe gambling is more toward a bit of luck and knowing how the games inside out . For example millions of players have heard the message that of all the casino table games, blackjack is the one that it is possible to beat. A practical system for counting cards in blackjack to gain an edge over the casino was made available to the public in the early 1960s. As it happened, few players ever really learned to beat the dealer. Furthermore, playing conditions have changed since then. Some tables use more than one deck at a time or cut a percentage of the cards out of play so that a card counter never sees them.

So the only thing left is to learn basic strategy for hitting, standing, doubling down, and splitting pairs . When I play a simple blackjack game using Vegas Casino . I only need this basic strategy , a bit of luck and clear mind & I'm good to go!

Yes, you are right. In leveraged trading, we should know how much profit we should take and don't greedy because this will makes you become a loss. I prefer with leveraged trading too although we don't have much knowledge about the coins as long as we can see the green colour in the status of the trading then it means, we can take the profit. I think it's easy to try in leveraged trading and the profit will be good for us.

Sure it is, especially in a volatile market like Bitcoin. While with normal trading you can as they say hold a bag for a while, it's impossible with leveraged trading.

To make it simple, normal trading involves technicals and fundamentals. If you buy in and the technicals fail you, you are still left with the fundamentals. That gives you the ability to freeze funds for a while, while being 5 or 10% at a loss, and wait for a bounce. This isn't possible in leveraged trading as you have to pay to hold your position and can eventually run out of money or come to the point when your eventual gains would barely cover the exchange fees. That's why it's a quick way to a large profit... or ruin.

I don’t think that “leveraged trading” is similar to gambling. No matter what type of trading it is, your decisions should always depend upon the knowledge about the market, implying that you need to understand and research the market carefully. Even for deciding the price of the coin in leveraged trading, you should really have some market knowledge but in gambling it entirely based on random guess and the result is based on your luck.

Even if they seem similar there is a difference, you can choose whether or not you leverage your trades, that small difference is enough to tell you that gambling and leverage trading are not the same, however once you use leverage trading I will admit that both activities become very similar, this is why it is recommended that only those that are expert traders use leverage at all but like always people do not listen because they only see the potential profits they can get.

That is not correct, I do not believe that we cannot make money in gambling, it's possible to win but the chance to win is very small compared to trading or course. You spend time to study a certain type of gambling as long as it's based on skills, I am sure you will win in the long run.

They actually do have a lot in common depending on how you approach trading and most especially leverage trading.
First and foremost, margin trading is something you can lose everything by getting liquidated, which is the same thing that can happen with gambling.

The only difference here is that when you are trading with knowledge and a good strategy, you sure will have a good chance doing well at it than gambling of course, but the mistake you ever want to make is to approach margin trading like gambling, you would be surprised at the level at which you will get burned the same way gambling originally does.

Still, when buying something in trading without proper analysis then it will lead to disasters whereas in gambling people do start gambling with lots of hours spent on deriving their own strategies still same disasters may happen in a blink of eye. Not just with gambling and trading, in our routine life, if we go in perspective analysis we may find lots of similarities in many conceptually different domains. Hence, no wonder in comparing/differentiating gambling and trading.

Approach margin trading like you are gambling, and you will realize they are not so different. Margin or trading the leverage way is a type of trading where if you do not have a strategy, and a good trading knowledge, you can get liquidated completely, and that is one thing you really do not want to see happen right? But you will see it happen just in the same way as gambling will get you screwed when you see trading as just a game of luck. A lot of people today that approached margin trading with the mindset of gambling, will sure have that story to tell you

Both things are more than different and you can not be comparing them, trading is good, and you can make profit if you study it.

Gambling is more than different, you can not make profit if you just study it, because it works because of an algorithm, that is based on the platform.

In my eyes, gambling stands as a much harsher way to lose money because the risk is much bigger whilst at least in 'leveraged' trading one can rely on many indicators such as news and technical trend analysis.

So when do you start calling something gambling? When you have 10% control? 5%? 1%? If you analysed gambling you'd know that some games are 100% luck but some are only 50% or even less. Are some of them gambling while others are not?
In my opinion if there is some amount of luck involved it's gambling.

leveraged trading using analysis to determine the trends and we need to know where the price wants to go in the next hours or tomorrow. and in leveraged trading, we can have a chance to get profit and even for big profit especially, if we can make a good analysis. but in gambling, our chance is not too big and we still depend on the luck factor and we have a chance to lose the money.