Not all types of trading are considered gambling, only trading without a strategy and hoping for luck is considered gambling.
Usually a newbie without expertise and experience who is trading can be considered playing gambling, because the opportunity
win is 50-50 chance. Meanwhile, if we trade by doing good risk management and doing market analysis first, this cannot be
considered gambling. Therefore, it is necessary to prepare before trading, and there are basic trading rules that must be obeyed.
This is what can differentiate between trading and gambling.
Topic: Is Trading can be considered as Gambling? (Read 509 times)
I have ever read this interesting article about is trading a gambling.
Basically, gambling and also trading have similarities and also differences. the similarities lay in the way they put the psychological fortitude to prepare even they will get loss or event profits, sometimes based on luck. There is also not a certain 100% guarantee about the future result of gambling or trading.
However, there are also some differences between these two. If you are a professional trader, you will not lay the result based on luck. It is more likely based on the analysis that is done, skill, strategies, and also the right decision at the right moment. This is more likely as a science, not luck or gambling without any analysis.
So, it will depend on who you are. if you are only trading not based on analysis, it is true that you only gamble on the results. But if you are doing exact analysis, having certain repeatedly strategies and professional skills, you are a true trader, not a gambler.
Basically, gambling and also trading have similarities and also differences. the similarities lay in the way they put the psychological fortitude to prepare even they will get loss or event profits, sometimes based on luck. There is also not a certain 100% guarantee about the future result of gambling or trading.
However, there are also some differences between these two. If you are a professional trader, you will not lay the result based on luck. It is more likely based on the analysis that is done, skill, strategies, and also the right decision at the right moment. This is more likely as a science, not luck or gambling without any analysis.
So, it will depend on who you are. if you are only trading not based on analysis, it is true that you only gamble on the results. But if you are doing exact analysis, having certain repeatedly strategies and professional skills, you are a true trader, not a gambler.
technically you can consider it gambling when you transfer your fund and risk your money hoping that you will get profit just like the gambling the only difference is that in gambling you will have the entertainment while in trading it's more on the technical analysis.
This is what I consider. It may look as you are gambling because you're putting it on a risk. That's the same in trading but playing in casinos and trading in exchanges are different.It all depends how you look things differently with trading and gambling. IN gambling, it is not only entertainment but there are serious gamblers that also make it as a source of income but they are few. In trading, there are day traders/scalp traders that also make money that deal risks everyday.
I think it is possible, but this topic is very complex because its defining concepts are very vague and can be disputed. For example, where do you draw the line between trading and investing? Different schools of economics look at this issue in different ways and it is very difficult to find this border.
They have their similarities like what you have mentioned but for me, they are somehow on a different level so I don't consider them as something really similar. They both have risk and you either win or lose when you trade or gamble but I guess I can say that we can assume that trading is like gambling but gambling is not like trading. Trading is like gambling because you are risking your money for the aim to earn profit but gambling is not trading because it does not require market analysis and such.
To help you understand it better, trading is somehow like a gambling if a trader doesn't consider risk management as part of their daily basis to minimize the losses. You know when you are gambling you tend to lose yourself and sometimes bet unconsciously bet out of all the results of your emotions and ends up losing. This applies too in trading which if you see that you lose to a certain trade you risk too much because you are irritated by the results. That's why having a risk management is a very useful tool you can use to trade with caution.Risk management which do includes
~Profit taking measures
~Proper allocation for each position you do made.
~Decision making in times of sudden dip or rise.
These are common factors to consider and if you dont mind about these things then you arent doing trading but rather
doing gambling.
IMO, trading with the default list cannot be considered as a form of gambling as the odds of winning are completely different. In gambling, there's a probability of winning, but in trading, this probability can be amplified depending on how experienced we are in analyzing the market and predicting where the graph could go depending on the market trend, news, and issues about a particular cryptocurrency.
Well, its actually more of a risk than gambling and yes, you are right that analyzing the market that we are in is better since we really can get profit from Daily Trading. There are a lot of news about Alternate Cryptocurrencies that we can use to our advantage but we should be always ready to accept the risk that it might present along the way.
Thing here is that you should really accept those risk and trying to suppress it via your own knowledge and skills which would really vary
or differ in each individual because we do have different level or knowledge when it comes to trading.
When we do trade then of course its understandable that price is way too unpredictable and if you don't know on what youre doing then youre
simply gambling out your money.
Depends on who does it really. Normally if you are a veteran trader who knows what he is doing, that is not gambling because they are trading very well since they are veterans and even on bad trades that is just tough luck and happens but mostly they know what they are doing so that is why it is not gambling.
In gambling you have no idea what the result will be, you can play on a 99% win chance game and in that 1 chance you could lose on the first try. This is why I think it is quite important to realize that we should probably not consider trading gambling. However if it is a newbie, and he doesn't know what he is doing and buy something because "he read somewhere it will go up" and that's it? That is pure gambling.
In gambling you have no idea what the result will be, you can play on a 99% win chance game and in that 1 chance you could lose on the first try. This is why I think it is quite important to realize that we should probably not consider trading gambling. However if it is a newbie, and he doesn't know what he is doing and buy something because "he read somewhere it will go up" and that's it? That is pure gambling.
They have their similarities like what you have mentioned but for me, they are somehow on a different level so I don't consider them as something really similar. They both have risk and you either win or lose when you trade or gamble but I guess I can say that we can assume that trading is like gambling but gambling is not like trading. Trading is like gambling because you are risking your money for the aim to earn profit but gambling is not trading because it does not require market analysis and such.
To help you understand it better, trading is somehow like a gambling if a trader doesn't consider risk management as part of their daily basis to minimize the losses. You know when you are gambling you tend to lose yourself and sometimes bet unconsciously bet out of all the results of your emotions and ends up losing. This applies too in trading which if you see that you lose to a certain trade you risk too much because you are irritated by the results. That's why having a risk management is a very useful tool you can use to trade with caution. IMO, trading with the default list cannot be considered as a form of gambling as the odds of winning are completely different. In gambling, there's a probability of winning, but in trading, this probability can be amplified depending on how experienced we are in analyzing the market and predicting where the graph could go depending on the market trend, news, and issues about a particular cryptocurrency.
Well, its actually more of a risk than gambling and yes, you are right that analyzing the market that we are in is better since we really can get profit from Daily Trading. There are a lot of news about Alternate Cryptocurrencies that we can use to our advantage but we should be always ready to accept the risk that it might present along the way.
It's no secret that some traders are basing their predictions based on their instinct and that's gambling already.
That's correct. Actually many don't even know that they enter into trading with a gambling mentality and may not understand that even after they get burnt.
I've done that myself some years ago. Luckily I got to understand at some point that what I was doing is too risky and... since then I turned into HOLDer.
I agree, some people relay on their instinct, some relay on other things, but doesn't matter on what you relay on when you are making a prediction, you are still trying to guess the future! When you are trying to predict the future you are gambling! Now with more facts and factors considered when you are making prediction, the risk can be lowered, but in the end some level of risk is always present, so it's gambling when you play safe at lower odds, and it's gambling when you play for big payouts, and you risk big time!
For me everything can be considered as gambling, life itself is gambling! Simply we make choices and decisions every day, if you decide to turn left instead of right, you are doing that because you believe that left will be an easier way, or more profitable, maybe you will meet someone or not...you are gambling whenever you make a choice, and it's happening all the time! Now try to think about all the choices you made in your life, how many times you choose good and how many times you choose bad! Could it be different? Just if you played it differently...
It's no secret that some traders are basing their predictions based on their instinct and that's gambling already.
That's correct. Actually many don't even know that they enter into trading with a gambling mentality and may not understand that even after they get burnt.
I've done that myself some years ago. Luckily I got to understand at some point that what I was doing is too risky and... since then I turned into HOLDer.
The same principle is applied at both, "analyzing and using all references to somehow predict the outcome".
Each has its own factors to be followed that will serve as an ingredient to make a good recipe.
To answer the subject directly, yes, trading can be considered as a form of gambling but there's an associated "only if" - depends on the person's approach. It's no secret that some traders are basing their predictions based on their instinct and that's gambling already.
I have this in my mind recently because I have seen in some of my trading groups that they have been rekt many times in Futures Trading with BTC. They trade a lot but keep on losing because there is a tendency to overtrade and not mind how much you risk totality. It's greed and fear what drive us to trade and continuously fuel the wants to trade. It's actually gambling, to be honest if what you are aiming for is just earning money and not applying different principles that could help you win in trading.
Trading will become gambling if you don't apply these principles
It's essential to remember the balance between money management and sticking to your trading plan. Like gambling, if you are losing, you tend to become even more annoyed and tendency to overbet. I think that's what is the same. It's the human emotion that drives us to the end. Make sure to overcome it if you want to win.
Trading will become gambling if you don't apply these principles
- Risk Management
- Have a trading plan
- Emotionless Trading
It's essential to remember the balance between money management and sticking to your trading plan. Like gambling, if you are losing, you tend to become even more annoyed and tendency to overbet. I think that's what is the same. It's the human emotion that drives us to the end. Make sure to overcome it if you want to win.
I do not think that you can consider trading Gambling. Gambling is more of so like :- Lucky Money but when it comes to trading you have to analyze each and everything and then reach a decision which is more or so more not dependent on odds but is rather an outcome of the market moving up and down.
Similarities are ofcourse genuine but if we consider them , you can actually take the whole life as a Gamble.
Risks are much less in Trading if you play your cards right and in the gambling unfortunately I do believe the risks are dependent on where , how much you are placing the bet etc.. gambling is riskier no doubt.
Even though no one knows what's going to happen with the market I do believe that there is a trust factor when it comes to trading your money , for example in Bitcoins. You know they are going to give you good returns , maybe not tomorrow , maybe not this month but yes , it's going to happen and it's a long process whereas Gambling is a short process.
Similarities are ofcourse genuine but if we consider them , you can actually take the whole life as a Gamble.
Risks are much less in Trading if you play your cards right and in the gambling unfortunately I do believe the risks are dependent on where , how much you are placing the bet etc.. gambling is riskier no doubt.
Even though no one knows what's going to happen with the market I do believe that there is a trust factor when it comes to trading your money , for example in Bitcoins. You know they are going to give you good returns , maybe not tomorrow , maybe not this month but yes , it's going to happen and it's a long process whereas Gambling is a short process.
They have their similarities like what you have mentioned but for me, they are somehow on a different level so I don't consider them as something really similar. They both have risk and you either win or lose when you trade or gamble but I guess I can say that we can assume that trading is like gambling but gambling is not like trading. Trading is like gambling because you are risking your money for the aim to earn profit but gambling is not trading because it does not require market analysis and such.
Well, gambling does have they called "strategies", like learning the probability of increasing the rate of your winning (I mean not all the games though but there few) which can be compared to market analysis in trading. I agree that trading can be assumed as gambling but gambling cannot be like trading. Trading is more like gambling because even though you possess a lot of knowledge and experience, how does the market does work or creating your own TA based on the trend and such, still it is not 100% certain that your analysis would work especially in this kind of market and we know how unforeseeable the market is. Thereby, IMO, trading is more like another form of gambling.
You've explained it already, in gambling there's a huge risk to lose the whole amount that you're using to play slots and dice with but in trading it depends on your choice, the graph and the analysis. I'm sure that trading can be considered gambling when traders just jump into the exchangers without any knowledge or experience, it's clear that there's a risk pourcentage that could lead into a loss but in general, gambling's risk is higher than the trading involved risk, that's the difference.
They have their similarities like what you have mentioned but for me, they are somehow on a different level so I don't consider them as something really similar. They both have risk and you either win or lose when you trade or gamble but I guess I can say that we can assume that trading is like gambling but gambling is not like trading. Trading is like gambling because you are risking your money for the aim to earn profit but gambling is not trading because it does not require market analysis and such.
for me, it is consider gambling because you are using money and at the same time you lose money when you bought something and its value goes down,
putting money on a stock, is consider betting, and betting is considered gambling right?
as long as you put your money into something, that has a chance to gain profit or loses its gambling.
putting money on a stock, is consider betting, and betting is considered gambling right?
as long as you put your money into something, that has a chance to gain profit or loses its gambling.
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As Betting refers to predicting the outcome of a future event, people who place bets try to win money by carefully predicting the outcome of a betted event. While Betting is not so risky and uncertain, Gambling on the other hand depends entirely on the theory of probability (based of luck).
in theory, trading is more inclined towards betting (because based on skill and analysis then produces predictions). A professional trader will make predictions and analyzes before deciding to make a purchase or sale, but trading can lead to gambling when the trader does not have analytical skills and only relies on his/her luck..
yes also there's trading gambling such as binary options well all of the things are mostly considered as gambling. investment, sports betting, trading, casino all of them are considered as gambling.
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Gambling is the wagering of money or something of value on an event with an uncertain outcome, with the primary intent of winning money or material goods. Gambling thus requires three elements to be present: consideration, risk, and a prize.
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