Why people think trading is gambling

People who Markets it as a get rich scheme also have an impact on making others look at trading as gambling rather than a investment career, and new traders make the mistake risking huge capital at once trying to double trading accounts without risk management, losing it all at once makes it look like gambling

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I agree with you. Many people(especially new traders) think that trading is gambling but that’s not the case. If you rush into trading without proper research and knowledge then it is baseless and definitely a matter of luck. Trading involves risk which can be minimized if not controlled with proper skills and strategy

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I just checked out some dictionary definitions of gambling - and it does appear that trading is technically gambling.

Here is post I’ve just written about it.

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Absolutely well put John,
I could not have put it better myself in any way.
Go and have a beer - well done !

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@Johnny1974

Well actually I met up with @steve369 in the pub the other day - quite enlightening.

Will probably make it a regular occurrence - although how that affects his intra day trading I have no idea.

Lol

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Yes it is a fact that many traders have done this and are doing this so it is one thing that we need to look at seriously and stop gambling in the Forex markets.

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Gambling and trading do have one key thing in common: risk. When you place a trade or a bet, you risk losing money to making more money. You can ‘win’ money and you can ‘lose’ money.

But the differences mostly stop there.

The primary difference between the two is ‘probability’. With gambling, you are relying solely on ‘luck’. For example, when you roll a dice in a casino, you have no idea what number you’re going to get.

In comparison, when you trade, you can analyze the market and predict where it is likely to go. You can implement a trading strategy and set yourself goals. There is a logic to trading and an ability to increase your chances of success.

The gambler mentality will not lead to success in forex trading. _____________________________________

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Hi Deirdre, I see you joined one day ago. Welcome to the forum. I also see you have spent 4 minutes reading before commenting. I doubt you could have read even just this thread to understand the background discussion in 4 minutes, let alone any other content. We were born with two ears and one mouth for a good reason. Use them in the proportion they were metered out and you will learn a lot from this forum. Meantime, please see the Education tab for Baby Pips school of Pipsology.

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as there is luck involved along with the knowledge, that is why people think it is gambling.

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Gambling and trading do have one key thing in common: risk. When you place a trade or a bet, you risk losing money to making more money. You can ‘win’ money and you can ‘lose’ money.

But the differences mostly stop there.

The primary difference between the two is ‘probability’. With gambling, you are relying solely on ‘luck’. For example, when you roll a dice in a casino, you have no idea what number you’re going to get.

In comparison, when you trade, you can analyze the market and predict where it is likely to go. You can implement a trading strategy and set yourself goals. There is a logic to trading and an ability to increase your chances of success.

The gambler mentality will not lead to success in forex trading. _____________________________________

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Hi Deirdre,
Thank you for your reply. It takes a lot to say sorry. There is no need to say sorry to me. Humility is one of the virtues that helps a budding trader to become a successful trader. So well done. I also don’t want to discourage you from making your points either because it is the nature of this forum to ask and learn, and to have differences of opinion. So please excuse my abruptness.

How are you getting on with the forum? Have you tried the Baby Pips School of Pipsology yet? What do you hope to get out of the forum? Tell us a bit about yourself and what your dreams or goals are. I am sure you will get a lot of good advice on here, especially about not making mistakes like listening to people who tell you their 90% probability system made them a million in a week. Best of luck with Forex.

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The best way to differentiate between the two. I totally agree.

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Trading is a form of gambling, no matter how you try and twist the definition you are still putting money at risk for a payout – certainly, there are different elements to trading versus other forms of gambling but you are still a degenerate gambler at the end of the day

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One important difference between trading and going to the casino is that when you go out to gamble, you have a negative expected return. In other words, the house is always expected to win over the long run, on average. Trading , however, if done skillfully and artfully, can put you in the position of the house.

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The only difference between gambling and trading is that in trading the probability of winning is in your favor.

Yeap :ok_hand: that is true

True, is not a game

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For me, our life is gambling! Everything we do and everything we expect, we wouldn’t know all outcomes that could happen later even though we’re certain of it. In every stuff we do, there are so many possibilities that can go wrong or right and we wager things in our life for it. Risk will always exist no matter what.

Something we can do is to improve the possibility for things to go right instead of going wrong.
And that goes also for trading! Learn more, strengthen your strategy, practice, and it will eliminate worse possibilities in the future.

If someone says that Trading is gambling, tell them this and ask them “Our life itself is a bigger gamble, then what’s your point? Trading’s just a smaller scale of “gambling” in my life”

and proceed to do dramatic exit :sunglasses: :sunglasses: :sunglasses:

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So from your perspective, everything in life is gambling, but trading if well prepared and studied will not be gambling?

You have to be well prepared for everything that could happen in your life, yes it also applies in trading. The point of studying and improving your skill is to significantly reduce the percentage of failing.

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