Trading is gambling with a suit
My robot friend says:
The statement “Trading is gambling with a suit” cleverly captures the essence of both activities. Let’s break it down:
- Similarities:
- Risk: Both trading and gambling involve risk. In trading, you risk capital in the hope of making a profit. In gambling, you risk money for the chance of winning.
- Uncertainty: Both activities are influenced by unpredictable factors. In trading, it’s market volatility; in gambling, it’s chance or luck.
- Emotions: Traders and gamblers experience similar emotions—excitement, fear, greed, and disappointment.
- Differences:
- Purpose:
- Trading: Typically, traders aim for long-term profitability by analyzing data, using strategies, and managing risk.
- Gambling: Often, the primary purpose is entertainment, with the possibility of winning money.
- Skill vs. Chance:
- Trading: Requires knowledge, analysis, and skill. Traders study charts, economic indicators, and company fundamentals.
- Gambling: Often relies more on luck or chance (e.g., roulette, slot machines).
- Social Perception:
- Trading: Generally seen as more respectable due to its association with financial markets.
- Gambling: Sometimes carries a negative stigma, especially if excessive or compulsive.
- The “Suit” Aspect:
- The mention of a “suit” adds an interesting layer. It implies a veneer of sophistication and professionalism associated with trading.
- Wearing a suit suggests seriousness, but it doesn’t necessarily eliminate the underlying risk.
In summary, while trading involves more analysis and strategy, both activities share common elements of risk-taking. So, whether you’re in a suit or not, remember that informed decisions matter
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looks like it goes to financial market activity, not just forex trading, since it’s not a prefect information game, there’s e lil bit of probability here
gambling is pure probility and nobody ever rich by gambling, it is either you don’t have what it takes or the house won’t let you
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There are some people who have been from gambling because they were too good
Well, there’s gambling and there’s gambling.
For example there’s gambling on a roulette wheel. Nothing the house or the player does can affect where the ball lands. Nothing the player does can make their win rate positive: the house’s rules have already guaranteed it is negative. There is no position sizing formula which will convert a player’s negative win rate into positive gains.
And then again there is gambling on whether Manchester United will win at home against Harrogate Town…
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The spreadbetting gives Man U a 35-goal handicap. 
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Forex is exactly like Roulette without the 0/00’s.
The 2-1 Payout hits 33.3% of the time, Even money bets 50%, streets odds of 12-1 hits 7.9% of the time.
I don’t seek to compare roulette and trading on a mathematical equivalency, only on basic principle - TA allows the trader to identify the most probable price action of the next time period: the roulette ball falling into a sequence of holes on the wheel does not allow for any such analysis.
TA has no zero predicability. Historical prices have no influence on the future.
It’s the same reason you can’t create a strategy that loses more than it’s expected outcome.
we hear this one very often I always disagree with it. Trading involves theoretical knowledge, gambling does not. Though I do understand your point in this, I still don’t think they are the same.
No limit holdem is far more complex than trading Forex. I’ll spend as much time in one hand as I do looking for trade setups in all of FX. Poker pot odds are directly correlated to trading scenarios for profiting in a zero-sum game. You’ll often hear Tom & Tony mention pot odds in TastyTrade.
Gambling is knowing the odds are against you, yet still pay to play. This is Forex. Babypips teaches you the rules and you play their game.
i am agree but i do not think it is bad thing. trading and gambling can also be good if done logically
I think you have told me this before.
Every few months we go at it
Not any longer.
You can own and trade the asset itself, it’s not just speculation ( although that type exists as well), in practice there are a lot differences, but in essence there are a lot of similarities.