Difference between trading and gambling

Trading and Gamling a different angle

people often compare trading to gambling, they are not the same!

Except for some table games like blackjack the biggest difference between trading and gambling is that previous results have NO effect, unlike in trading.

for instance, on a roulette wheel..no matter what has happened in the past it has no physical effect on where the ball will land, it is always the same fixed odds. In trading previous results DO effect the outcome of the market.

Betting and trading is completely different from gambling .
In gambling the historical performance cannot affect outcome although people try to use statistics to predict the outcome.The money gambled are lost in case the prediction goes wrong and the prediction has an end.
Betting on the other side could be gambling if factors who affect the outcome are not taken into consideration at all or wrongly. Insider info are very important here and are part of the "factors" discussed above The problem with betting is that the money invested are lost in case the prediction goes wrong and the prediction has an end.
In trading you have 2 layers defined by the approach towards it.
-1st layer is the longer view approach ( 3+ months + dividends)
-2nd short view in and out in short horizon even with leverage (1 min -3 months)

In the 1st layer the capital(played amount) is not lost but reduced or increased
In the 2nd layer the capital (played amount) is under higher risk and could be lost in case of high leverage.

In all cases money and risk management techniques are needed with more positive effect in betting and trading
 
In fact, gambling and trading can be compared in different ways. On the one hand there are certain schemes for analysis in both directions, which can lead to a positive result. This is a fact. On the other hand, both there and there the system can fail, respectively you will not see the desired result and you can lose your money is also a fact. But, the market has its own regularities, which you can trace with adequate statistics, news data, reports, etc. And if you cooperate with a normal broker, then you will have no difficulties with the implementation of your knowledge in practice, in the real market. Gambling is the result here and now, trading is a business that has long-term prospects, especially if you are interested in it and are ready to work for the result.


Are you saying that because trading and gambling are different because gambling has only a short-term probability of survival but trading has a long-term probability of survival?
 
Top