It’s just a question guys that I want to see what others think about it.
So, what’s the difference between trading and gambling?
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If a person trades for the sake of excitement or social proofing rather than methodically, they are most likely trading in a gambling style. If a trader just trades to win, they are most likely gambling. Traders that have a’must-win’ mentality may frequently fail to detect a losing trade and quit their holdings.
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I think to avoid “trading” like a gambler the most important discipline to learn is risk management also gambling is a game of luck, while trading is about skill.
In gambling you put your money on the table before the coin are tossed up into the air, in trading you can wait and even take out a profit before the coin hit the table again
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Trading v Gambling?
Well, I suppose both can go hand in hand. Anyone can trade, but some of those traders will have learnt risk management etc etc and will be ‘traders’, other that trade with zero trading education and no concept of risk management can trade and they are ‘gamblers’.
With gambling, again here you can have people that have learnt the risk management parameters of the particular gamble they’re involved with, such as poker players, horse race betting etc. These people could be called 'professional gamblers. Whereas someone just gambling for the sake of it without the risk management understanding/education are ‘gamblers’.
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There are two types of gamblers
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Gamblers who walk into a casino hoping to walk out with a pile of cash by gambling on different games / markets who really doesn’t understand what they are doing.
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you have the professional gambler who chooses a particular game/market and does research on that game/market, such as horse racing, card games, or sports betting, and makes money.
For me, the difference is that I’ve never met a trader who opens a broker account and hits buy and sell hoping to make money like gambler number 1.
The majority of traders do some type of research before they open a broker account. Furthermore, they base their trades on that research, even if they don’t succeed, they did some research. On the other hand, gambler number one just pops up at a casino and tries their luck and lets the chips fall where they may.
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Trading and gambling both have risks and opportunities to win or lose money. But trading requires skills, knowledge, and a strategic approach, while gambling is more about luck and often lacks purpose or value.
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Then, I guess basically and somehow both are same. the difference is whether you rely on chance or education. skill and experience.
I think gambling is luck-based and you gamble for fun and based on luck in my opinion. However trading is knowledge based and is done according to any strategies you may have than just by chance and it is also a serious thing and not something to be taken lightly.
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If anyone knows a player who wins money, for example in roulette, let him say so. I don’t know anyone and essentially this may be a good answer for this thread.
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Its mathematically impossible to attain consistent success at roulette or the lottery etc. Professional gamblers concentrate on horse-racing, blackjack, poker, tennis, boxing etc… These are still gambling but its possible to influence the outcome using skill and knowledge.
Traders who depend on luck have only themselves to blame.
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Hello Ethan,
That’s a great question.
As I see it, the fundamental difference between trading and gambling is that trading is not based on luck or chance but on careful planning and risk management. Trading is a long-term strategy to build wealth while gambling is more of a short-term pursuit for immediate gains. Even if you have excellent knowledge of a particular game, such as roulette, (How can someone have knowledge of that game!??) you cannot always win. In forex, however, if you have a good mindset and a solid trading strategy, winning consistently is achievable.
man i gambled a lot
this is a whole different thing
if you calculate everything you can win it here but in bet you can win 50% and that is not related to your skill
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That is totally accurate and rational. Although a little chance is also included in trading but that’s why use all of that skills and bluh bluh in trading.
Trading and gambling have some similarities, like the element of risk and uncertainty. However, they also have key differences.
Trading often involves more research, analysis, and strategy. It’s about making informed decisions based on market trends, news, and data. While there’s still a risk, it’s more calculated.
I remember pondering the same thing when I first dipped my toes into trading.
That is understandable for a new trader. And perhaps a new trader does need a little luck - but not luck in a trade, luck in his research for a system with which to trade…
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