Trading vs Gambling - Page 157
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Thread: Trading vs Gambling

  1. #1561
    Trading can be a gambling if we trading without full analysis and without calculating a risk management in trading. What i know that trading is always benefit, that is the principal a trading but not with gambling, that gambling always have a opportunity to win and loss. Even when loss, it will all amount in account would be gone when losing.
    Trade with your eyes and not trading with what you wish impossible

  2. #1562
    Quote Originally Posted by elghina View Post
    Trading can be a gambling if we trading without full analysis
    Full analysis is impossible in economics. :-)

  3. #1563
    Banned
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    A trader must have to take decision how he will take this market like a proper way of trading or just gambling no learning all the trader are earning higher from market we just need to focus on trade with good plan and learning we get more profit then gambling so trader have to follow the best way for successful trading .

  4. #1564
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    A trader is not gambling through proper plan because sometime we see that if we are building plan without knowledge and experience so that will give trader losses we have to manage our trade first and get knowledge about trade it is most helpful to work in market and for attain positive trade results and through this way we build true trade system . .

  5. #1565
    Registered user
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    Some of these might be fixable, but the daily creation of some new speculative trading further damages the credibility of these systems. I suspect you'll get better odds at the worst games in Las Vegas.

  6. #1566
    I never compare gamling with trading but with the help of your word i am more learn about it how we use our trading strategies and if there is a difference in gambling and in trading so on what term we claim that , in this market some trade try to be gamble in different way because if we do not have learning well about market and we open with higher volume so it is also a shape of gambling we must have to take market seriously and make our trade analysis properly .

  7. #1567
    Quote Originally Posted by Value trader View Post
    Hi traders! I’ve seen a thread here, on the forum «Is Forex trading gambling?». I’ve decided to reflect on this point a bit and to express my point of view.

    About 1.5 years ago I’ve been in Las Vegas and seen all those casinos with flashing lights, shows and magnificence. I asked myself – how in the world could they build all this in the heart of the Mojave desert?
    What «business model» casino (whether it’s traditional gambling house or online casino) does employ? There is a thing called «house advantage». It means that casino has the right to limit ceiling of gains in one single gambling attempt, thanks for limited stake in dollars. One simply can not bet 1 million dollars for a single stake (and, say, win 36 million). Every stake is calculated so that gains of one single player can’t affect house (casino) much.
    To extract money from casino, you should get series of consecutive wins, otherwise house advantage will lead to migration of money from your pocket to pocket of casino holders. I remember one joke, when man asks: «Is my money lost?», and he gets answer: «No, they just have changed their owner».

    That’s what casinos do. They allow you to earn limited amount of money in every stake while probability of winning event is pretty low for every player.

    What about trading the market? Is it similar to what casinos do? First of all, trader defines cost of a stake himself. That’s a very serious difference between trading and casino. It’s you who decide in trading – to bet 10 USD or 100 USD for the single «stake». Then, in trading outcome is never defined unless you’ve closed your position. Probabilities change as new data comes to the market. If you are in position, you may close it to breakeven, close it with the small profit, close it with large profit, close it with a loss, and yes – you can lose more than you intended to do. Trader has much more choices and can actually manage probabilities while gambler deals with chances, defined before the game – chances can’t change while roulette is rotating.

    Trader can decide to have probabilities on his side. Even if his analysis is not too good, he nevertheless can manage risks, keeping losses small and gains big. By the way, low risk doesn’t mean always small loss in a trade, low risk also mean that you can have good chance of being right rather than being wrong.

    What about this?

    Trader can have higher odds of success because of his analysis. Well, some people think that they can have perfect analysis and be right in 90% outcomes. That is not proven statistically. Research and experience show that 60% of profitable outcomes is a very high rate. Many professional traders are ok with having just 50% of profitable trades (yet, it doesn’t mean that they lose much in other 50% of trades, losses can be reduced or they may even get zero profit/loss). But it's the fact that trader CAN increase odds of success with his analysis, that’s why analysis is worth doing. Gambler doesn’t have this advantage except card counters in poker (they are very rare and casino owners know most of them :) )

    So, as you see trader can have huge advantage in a long run while gambler is destined to failure – otherwise we couldn’t see those hotels, shows, Broadway stars and free cocktails.

    Yet, gambling in small portions can be fun. While being in Vegas, I came to hall of the hotel and lost a few dollars in a slot machine. As a trader I always have to think about the risk, deal with discomfort and manage my emotions. Slot machine was pure fun and I was agree to pay 10 dollars for that.

    Share you experience and ideas on this topic!

    thank you for this thread, of course it will be beneficial for all. of course trading is different from gambling. because trading is not gambling. trading requires proper, careful and observant analysis that certainly requires brain and emotional intelligence and many parameters that we must consider such as fundamental and technical knowledge such as mathematics. while gambling is just guessing that is influenced by fortunity.

  8. #1568
    Trader
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    Aug 2018
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    I see the main difference between trading and gambling that gambling has sucess ratio less than 50:50 percent because of spreads and comissions. Trading success ratio is more than 50 percent because traders use technical analysis and can foresee market reaction on strong support resistance levels and earn profit due to good analysis of market.

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