What truly sets trading apart from gambling? While both activities involve risk and financial ? Trading is grounded in analysis and strategy, with the aim of long-term investment and profit. It demands skill, research, and risk management. On the other hand, gambling often hinges on luck, offering short-term entertainment and the possibility of financial gain, but primarily for enjoyment. So, what separates the two, and how can understanding these distinctions shape your approach to risk and reward?
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It is a good question, @00012wnnn, and a Sunday afternoon is a good time to ponder on it! 
Personally, I don’t think there is much difference at all between the two terms. We could apply the term “speculating” to either of these two activities.
I think the main difference is in how we gamble/trade. There are professionals in both areas and professional gamblers would not accept that it is only based on luck and only for fun.
Like many successful board games, like Monopoly, for example, there is always a combination of skill and the unknown factors. I think both trading and gambling are the same.
Whatever approach we take to trading, there are always unknown factors that move price and we cannot ever recognise what these will be in advance. However, we can build in safeguards against their occurrence.
The common word in both gambling and trading is having an “edge”. In gambling, it is, for example, the casino that has the edge which guarantees them a profit over time regardless of any individual gain or loss by a punter.
Our job is to act like the casino and build an edge into our strategy such that we make a consistent gain over time regardless of the outcome of any particular, individual trade.
So, in my opinion. the difference is not between gambling and trading, it is between being a professional and an amateur.
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Yes, the learnt edge is key. And that is the strategy and process that provides more profits than losses. whether you are a gambler or trader. FX trading is a zero sum market - maybe a negative sum when you add broker fees. Which means the market is there to take losers money to give to winners.
Back awhile, I had a horse racing strategy that brought me more profits than losses because I studied previous performance etc etc. It was and still is the challenge that I trade, not for the money, albeit if it pays for my lunch expenses, I am well pleased. (No such thing as a free lunch.)
Which is to explain that if you forget about making money, and let the rewards take care of themselves, psychologically you are on the path to becoming more successful.
Best of luck.
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You’re absolutely right, the distinction between gambling and trading often comes down to how individuals approach these activities. Both gambling and trading involve an element of risk and uncertainty, but the key difference lies in the methodology, mindset, and strategy employed. Ultimately, whether one is engaged in trading or gambling, the mindset and approach determine the outcome. Being well-informed, disciplined, and strategic can transform what might appear as a gamble into a more professional.
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On the other hand, gambling tends to rely more on chance, luck, or intuition, without necessarily considering long-term strategies or conducting thorough research. The outcome of gambling is primarily determined by luck and randomness, making it more of a recreational activity rather than a calculated investment.
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I personally think trading and gambling are very very similar. It’s all about mitigating your risk and hoping the trade and gamble go in your direction.
When you trade you do your research, following a trading system and make an assumption of which way you think the market will go based on this, but you can’t guarantee it will.
When you gamble, lets say on a sports team, you also do your research etc and make an assumption of which way you think the bet will go based on this, but you also can’t guarantee a win.
I actually think gambling can be easier than trading, as the betting companies do most the leg work for you with crunching the numbers and giving you the odds based on the data. So, in theory, if you always bet on the favourite you have a better chance on winning than if your don’t.
However, most people who gamble do it for fun so don’t actually care if they win or lose, whereas traders are always trying to win. For example, if it was the world cup final and England was playing USA. I would expect most American’s would bet on the USA winning despite the odds clearly showing England are the favourites.
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analysis , strategy ,skill, research, risk management are all terms ,none of them make perfect sense in forex ,more of a self-satisfactioning move to me , i can find as much as “terms” from gambling as well if i want to .i think gambling have a better chance of winning compare to forex
a) the bank always wins.
b) traders sometimes win.
follow the bank to win.
Trading and gaming may share some similarities, but they’re worlds apart. Trading feels like a strategic chess match, where you analyze, plan, and aim for long-term gains. It’s all about skill and managing risks.