TRADING IS RISKY BUT IT AIN’T GAMBLING.
When I first started trading, people around me it. They started trying to convince me, with good intention of course, to back off by telling me “Are you serious, it is gambling man”, “I would rather prefer to go to the casino and enjoy it if I’m gona lose my money”, “Ah, and so don’t you think it is risky”, etc.
Now at first, it was kinda hard for me to convince them that it is actually an investment and I couldn’t understand why they all think about trading like that. But later I knew that the problem is that they know at least one person who tried trading and in the end he lost his homes, his kids, his wife, his money, etc. and not just that but also since they don’t know that much about trading.
How I am here to tell you that TRADING IS RISKY BUT IT AIN’T GAMBLING because when I trade properly with a plan I control the outcomes and I can beat the market. But if I don’t know what I am doing (i.e. trading without a plan) then eventually I will not be able to control the outcomes and I will loss and loss and loss.
Word of advice to #newbies. Don’t start trading before you learn. Deal?
TRADING IS RISKY BUT IT AIN’T GAMBLING.
While I agree with you others (non traders) would not…
I’ve had this out multiple times with non trading friends.
The conclusion I have drawn is that they think anything with an uncertain outcome is gambling.
Most are just knee jerking and haven’t thought their argument through.
Because when I say opening a business is a gamble, or crossing the street is a gambling they begrudgingly have to agree
Us traders have a much better idea of what gambling really something non traders have never had to think about
In their eyes I guess the only money generating activity that isn’t gambling is having a paid job.
And in these covid 19 challenged times even that’s a gamble
My advice to anyone out there is to never discuss trading with non traders. It’s more fun banging your head against a brick wall.
Trading is not gambling but it’s the traders who treat it like gambling. They want to make huge money without having necessary skills and knowledge. When you don’t have enough skills, you will end up treating it like gambling.
I like to use the casino analogy…
Any casino has thousands of individual games played each night… do you think they know which individual games are going to win?
Their whole business model is based on being profitable on completely random individual outcomes of each game, irrespective of the skill level of the counter party.
And they do this very well… through maintaining a slight edge or ‘houses favour’ on each game AND by understanding the law of large numbers, allowing their edge to play out consistently, in fact the more individual random outcomes, the more consistent their overall returns would be.
I see trading as being being very similar.
To trade with a casinos edge - straight out the Mark Douglas playbook - and totally correct
I was racking my brain trying to remember where I originally read about it so I could point him to it.
Mark Douglas makes sense! It definitely resonated with me whenever I read it as I use it all the time!
I beg to differ (but only because I like to play devil’s advocate sometimes). In the UK, at least, trading is deemed by the government to be “gambling” the same way as winning the lottery, or winning on a sports bet. The reason is simple. UK law states that you can offset legitimate losses against legitimate income when submitting annual tax returns. Since 95% of participants in Forex trading lose money, the government would be allowing tax to be offset against 95% of the losses. Instead, they let the winners take their Forex (and sports betting) profits free of tax to save themselves a fortune. What I have described will not always be set in stone for every individual, and the framework, methodology and processes you use to make profit or loss on trading matter practically in terms of overall tax treatment, but it supports my view that (from a legal and regulatory perspective) Forex trading is deemed as gambling in the UK.
Valid point, and long may it continue.
Trading is not gambling. You can be profitable in short time by gambling. But long-time success depends on skill, plan and knowledge.
people sometimes don’t know what personal space means))
Oft Asked question.
Similar to “I don’t tell lies”
The problem with both of these is simply that the operative words
Are just being defined differently by the opposing sides of the argument.
To Me ;
EVERYONE tells lies
Yes Trading IS Gambling !
I have found a legal definition of “trade” from which we can imagine by thought extension the meaning of “trading”.
In its most extensive signification this word includes all sorts of dealings by way of Bale or exchange. In a more limited sense it signifies the dealings in a particular business, as the India trade; by trade is also understood the business of a particular mechanic, hence boys are said to be put apprentices to learn a trade, as the trade of a carpenter, shoemaker, and the like. Bac. Ab. Master and Servant, D 1. Trade differs from art. (q.v.)
2. It is the policy of the law to encourage trade, and therefore all contracts which restrain the exercise of a man’s talents in trade are detrimental to the commonwealth, and therefore void; though he may bind himself not to exercise a trade in a particular place, for, in this last case, as he may pursue it in another place, the commonwealth has the benefit of it. 8 Mass. 223; 9 Mass. 522. Vide Ware R. 257, 260 Com. Dig. h.t.; Vin. Ab. h.t.
A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
We could challenge, therefore, that restricting a US citizen from trading in currency pairs via an overseas broker may be breaching his rights under the US constitution. Much the same as gun laws. Since it is "adapted to the Constitution and Laws of the United States in 1856, it must then have its roots in British law too.
I dunno mate !
If I offer you a cow for 14 chickens - is that a trade ?
if you don’t want to pay14 chickens - but CAN FIND 3 chickens a sack of potatoes, a pig and 3 quarts of whiskey - would be a reasonable atempt at moderation to you , - Where does that fall in your definition ?
Why people think trading is gambling?
Has been a hot topic since the inception of this forum…
@Falstaff… I tried to trade my daughter off to her sack of potatoes boyfriend for 14 Chickens, 2 Pigs and 4 quarts of Whisky… I even offered to throw in a Cow!!.. Alas, she still lives at home…
My definition, as with Forex is damn unlucky…
One of my Sons in Law - came and actually asked my permission to ask my daughter to marry him !
He is right little earner - an artisan baker - and they are doin ok ! - like coining it !
But it was a nice touch !
I don’t think they will be together for ever - she’s WAY brighter than him - but as I said he’s a great little earner !
Have you thought about offering him a share in your Gold mining buisiness ? - Victoria is supposed to be a great prospecting area
[Edit - even if you buy / take an option on - the claim and send the sack of potatoes off to “prove it” - all in the fullness of time of course ! ]
… Victoria is in such a restrictive lockdown, the only mining I’ll be doing till mid September, and possibly beyond will be limited to my backyard…
Any Victorians looking forward to an interstate (or International) holiday will have to learn to Run, Jump, Climb, Swim or Tunnel between now and the Christmas break… They don’t call Victorians Mexicans (South of the Border) for nothing… Just received my new Number Plate Surrounds (Below)
So bad here atm… the Tooth Fairy, Easter Bunny and Santa Claus are likely to be tasered, choke held and cuffed by Victoria’s finest if they try to cross the border… Victoria… The Sad State… of Affairs…
Why people think trading is gambling?
Because it is fact. Whenever you take a calculated risk, you are making a wager, which is by conventional definition ‘a gamble’. Even when the odds are 90% in your favor, there is still a 10% chance that the endeavour may fail.
We live in a world where religion advocate that gambling is bad. Thus, there is a certain amount of stigma attach to the word gambling. Most trader would prefer to call it trading instead.
Even when crossing the road, there is a 1 in 10,000 chance that you may get hit by a car. Are we not taking a gamble that we will not get hit by a car whenever we Jaywalk?
Everything we do in life involves a certain amount of risk. When the risk is low, nobody realize that it is still a gamble. However, when the odds approaches 50/50, people start having palpitations.
well said, i agree
but its not a casino, the markets dont lie