The definition of gambling:
1. Money that is risked for possible monetary gain
2. Take a risk in the hope of a favorable outcome.
Do those two statements define most of your trading activity? Just as somebody would study sport as a hobby and back their views, are traders not just learning about and studying the markets and ''taking a risk in the hope of a favorable outcome''
However we access the markets, whatever we trade or buy we are all taking ''risk in the hope of possible monetary gain''
I know a guy whose life has gone downhill since he secretly started gambling heavily on the horses and football - he nearly lost his shirt. I bet there are just as many stories of people loosing all their money, wife, car, sanity etc... 'gambling' on the markets.
Trading is without doubt a more intellectually challenging and sophisticated form of gambling - people who do it full time are really just informed gamblers.
This is how I see it
When you start trading every decision is like spinning a roulette wheel with all 36 numbers present as you spin. As you gain more knowledge, discipline and skill - those numbers start to whittle away giving you more chance of being successful.
Is this any different to analyzing premiership football and making your money there? I know it is all very impressive explaining to people your a trader but I wonder if we would get such a positive reaction introducing ourselves as professional gamblers at dinner party's??
What make TA or fundamental analysis any different to studying form when betting on horses????
What do you guy's think?
JK
1. Money that is risked for possible monetary gain
2. Take a risk in the hope of a favorable outcome.
Do those two statements define most of your trading activity? Just as somebody would study sport as a hobby and back their views, are traders not just learning about and studying the markets and ''taking a risk in the hope of a favorable outcome''
However we access the markets, whatever we trade or buy we are all taking ''risk in the hope of possible monetary gain''
I know a guy whose life has gone downhill since he secretly started gambling heavily on the horses and football - he nearly lost his shirt. I bet there are just as many stories of people loosing all their money, wife, car, sanity etc... 'gambling' on the markets.
Trading is without doubt a more intellectually challenging and sophisticated form of gambling - people who do it full time are really just informed gamblers.
This is how I see it
When you start trading every decision is like spinning a roulette wheel with all 36 numbers present as you spin. As you gain more knowledge, discipline and skill - those numbers start to whittle away giving you more chance of being successful.
Is this any different to analyzing premiership football and making your money there? I know it is all very impressive explaining to people your a trader but I wonder if we would get such a positive reaction introducing ourselves as professional gamblers at dinner party's??
What make TA or fundamental analysis any different to studying form when betting on horses????
What do you guy's think?
JK
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