So from your point of view, opening a business or crossing the street is considered to be gambling ?
@Johnscott31 I don’t think it’s possible to make money by gambling for long term. Trading requires a very sound, calculative and composed mind. As Warren Buffett said, Risk comes from not knowing what you are doing. And in gambling this is what happens.
Which is why I don’t consider trading to be gambling.
Whoever thinks that trading is gambling has possibly never done trading. One requires to be knowledgeable in order to make profits with trading.
Totally true and all of those who I encounter that say Trading is gambling have never been into trading and have no knowledge about the basics of trading
trading and gambling are both different. The market is unpredictable that does not mean it is gambling. Though there is a lot of risk involved.
Trading is similar to poker game. Timing and size of the bet is sometimes even more important than guessing market direction. Even with random betting you should win 50% of the time. Due to existence of trends, market momentum and price levels your winning ratio can be higher than 50% but if your rules for entry and exit as well as position size are wrong your trading can quickly go south.
I would not say that trading is gambling, it consists of lots of risks like gambling but it is not gambling at all. Trading is more of like where you need both the luck and strategy. If you have a good and efficient strategy your chances to have profits becomes quite high. Strategy and planning play a crucial role in the forex which certain your chances of survival in the market.
It is in a way…gambling with an edge
Easy there @jessoprules, you’ll frighten the children…
Hi there. I completely agree with you. If you generalise every human activity in life then everything is gamble i.e. risky. I’ve just recently started interested in forex trading and at the moment I’m building up my knowledge and skills before jumping into real trading. In my opinion forex trading is a high skilled trading rather then traditional trade. It is an art which is requires a high three dimensional analytical thinking. Therefore it’s not accessible to everybody so that why most people don’t understand it and just brash it as gambling.
I love this reply
Purchasing an asset in attempt to resell it at a higher value later is definitely taking risk, but not gambling.
Astute observations John.
Well said bro
Well most people see trading as gambling,my advice is, to master the game before playing, that’s for those who sees it as gambling.
What’s the difference between spread betting and contracts for difference?
CFDs and spread bets are both leveraged derivatives that enable clients to have exposure to changes in an asset’s price, without owning the asset itself. An opening CFD / spread bet contract is established by initiating a buy or sell position in the required amount. This is subsequently reversed to close the contract, which is then cash settled.
The primary difference between these products is how they are treated for tax purposes:
You don’t have to pay Stamp Duty when you buy or sell contracts for difference. You don’t currently have to pay CGT on spread betting winnings because it is considered a form of “gambling” (UK Government… Not Me!). Although you could be liable to income tax if your spread betting is deemed to be a trade, that is if you’re living off the profits made.
If things go wrong?
Spread bets and CFDs are specified investments, which means firms that deal, arrange, or advise on them are required to be authorised and regulated by the Financial Conduct Authority. If you’re unhappy with the service you get or you want to make a complaint, read Sort out a money problem, make a complaint or get compensation. Just, remember however, that you cannot claim compensation if you lose money on a bet.
Did you know?
“The FCA analysed a sample of client accounts from UK CFD firms and found that 82% of clients lose money and that, on average, clients experienced a loss of £2,200 when trading these products.” These are the facts and they are undisputed…
At the end of the day… I don’t really care… I have nothing to sell… If your conscience allows you to believe you’re not playing a game… well, good for you!
If you have done your homework properly and have a strategy then it is trading, but if you came out of nowhere just to earn high profits in no time then it is definitely Gambling!! Thank you.
If they see it as gambling they will never master it. Only those who knows how to analyze Forex can actually trade and not see it as gambling.