Distinction between trader, gambler and bettor
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Thread: Distinction between trader, gambler and bettor

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    Distinction between trader, gambler and bettor

    Hi everyone!

    Today I want to talk about important point that 90% traders fail to recognize. What is the difference between trader, bettor and gambler?

    Basically, trader historically has been someone who was trading in the pits (on the exchange), capturing bid/ask spread and executing orders of large institutional clients. So, trader was primarily a scalper - he was holding positions for seconds or minutes, but never had long term view. Such traders were called market makers - they were providing liquidity, no more than that.

    Nowadays, If you scalp the market for profit, you can be called a trader, but it’s hard to call you market maker - it’s your broker who can be called a market maker.

    Speculator is a little bit different concept. Speculator anticipates what market will do in nearest future rather than simply filling orders. To “speculate” means “to look forward” (from Greek). So, speculator has some directional bias, some idea or expectation about the future. Very important thing is that speculator would not trade if he has no idea about the force driving the market - he can’t just enter the position because his risk is limited to 2% of a capital. He has trading hypothesis and knows very accurately when this hypothesis is rejected. So, he has sort of a plan.

    Today, speculator and trader are considered to be the same thing.

    Who is gambler? It is someone who doesn’t have ANY idea of where market will go - he just enters the position, mostly for andrenaline rush or idea of capturing “quick money”.

    It is considered that gamblers go to casino, and financial market is for “traders”. But there are situations when poker player can be called speculator with greater confidence than someone who pushes buttons in trading terminal.

    You see - if you can count cards, if you are able to quickly estimate the odds of a poker (or any other) game, you manage your risks - so you have more features of a speculator than from a gambler.

    Contrarily, if you have a trading account, but don’t manage risk (say, accept huge position size, don’t have proper analysis e t.c.), you act more like gambler than a trader.

    As for the bettors, they make stakes on one of two outcomes - up and down. Their ego is on the line, they have to be right in greater cases than being wrong. Some technical analysts are bettors.
    Don’t mix those concepts!

    And of course, I encourage you to be speculators/traders, not gamblers. Or at least not to deceive yourself about what you are doing in reality.

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    Last edited by Value trader; 12-01-2014 at 09:13 PM.

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    What a great distinction exposition. I have seen it really well, there are much traders in the market, I means they call themselves traders, but they are actually a gambler or a bettor. In the best way of trading is to follow the defined trading principles, that is how you can win the title of trader in the market because they are not same.

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    A trader, Gambler, and Bettor there is too much difference between in these three things. A trader follow proper discipline in his or her trading and follow proper trading plan too but a gambler and better never try to understand about this business they to learn well and not follow any trading plan too. That's very true sir they called themselves a trader but in real they are no more than any gambler and bettor

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    Registered user Hukam's Avatar
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    Gambling trading is not a part of real trading business. Gambler can't make consistent profit in this business. Forex trading business is a hard worker person business where we have to spend a lot of time with our practice, we need a very good practical knowledge in forex. Because of gambling many trader's loose their career in this business

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    Registered user techboy's Avatar
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    If a trader wants life long success in trading he should aspire to be an speculator as what is described here, he needs to develop a technique that will give him the advantage of bringing good results to his trading activities, but some trader also fall to gambler category at the early part of their trading journey, what is important here is we learn from our mistakes and move on.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Forex trading and casion gambler is nothing different. Poker player and trader have same mentality, and also analysis. Many other people think that gambling does not need analysis. But gambler needs analysis too. Gambling needs more mentality than trader forex.

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    Trader debian's Avatar
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    Quote Originally Posted by techboy View Post
    If a trader wants life long success in trading he should aspire to be an speculator as what is described here, he needs to develop a technique that will give him the advantage of bringing good results to his trading activities, but some trader also fall to gambler category at the early part of their trading journey, what is important here is we learn from our mistakes and move on.
    Yes that is true if Forex trading is one of a serious business that must be do with serious analysis technically but ironically there are much number of the trader who did not take this business in the serious way , Many thinks this is fun business , Many thinks this is specultive business and others , Such all peoples can not understand this business entirely . Need more learning to know more about the basic business principle

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    yes the gambling schemes with the good supports as running of the proper money management and more to run of the good trick on the manage of the gambling work; those still to gives of the good chance as earning with the shifts on difference between the expense and return by the compliance.
    and more to spend of the better with the customs on arrange as to prepare of the formal with the technical works with the details on casuals to gives of the higher value with the appropriation.

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    Quote Originally Posted by techboy View Post
    If a trader wants life long success in trading he should aspire to be an speculator as what is described here, he needs to develop a technique that will give him the advantage of bringing good results to his trading activities, but some trader also fall to gambler category at the early part of their trading journey, what is important here is we learn from our mistakes and move on.
    patience is the key to be successful in forex trading. many traders were destroyed because they do not want to be patient in learning to improve their trading. so that they only depend on luck

    Forex is one form of business that is considered unique and different levels of complexity compared to other businesses. If forex was the same as any other business, why is that many traders are destroyed? Yes it is simple, because it is different forex difficulty level.

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  10. #10
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    gambler can not achieve any progress in the market trading of the Forex . I think that Forex trading is not gambling but it is a very respected work but has may problems which may be a very hard to some of us but that does not mean to push us to trade like gambling ever. .also we have not to think like racers in the trading . it may be so dangerous

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