FAQ Is Trading the Same as Gambling?

[postman]

It's amazing what a bunch of spotty teenagers can create using Python, this site is an eye opener, none of the faces you see are real, just created from some AI. If you look closely at each image you will realise that the teeth never quite look right.

This Person Does Not Exist

This Person Does Not Exist

thispersondoesnotexist.com

And chatbots are really taking off, if you thought talking to a dumb person on the phone was bad just wait till you talk to some dumb AI software online.

So back to the subject at hand ...

Is Trading the Same as Gambling?​

If you want to be taken seriously when replying then just define trading, define gambling and then state your reason for saying why they are the same or different then we can judge your ability to form a coherent hypothesis.

 

[postman]

Now tell me trading isn't gambling...

A hedge fund shorted Gamestop and a bunch of out of work idiots (self professed) ran the share price up 1,000% in 5 days causing millions in losses for the fund.

 

[CavaliereVerde]

a bunch of out of work idiots

Idiots with deep pockets.
This is the market, it is driven by money.

 

[postman]

Idiots with deep pockets.
This is the market, it is driven by money.

Yep, money not logic, charts or fundamentals just an opportunity to make money.
So ANY trade is a gamble!

 

[postman]

Jesus even "The Sun" newspaper understands it! How stupid do you have to be not to realise we are all gambling.

"INVESTING and buying shares can be risky and should not be entered into without knowing what’s at stake.
It’s essentially betting that a company’s value will go up but it’s not guaranteed. You should only invest what you can afford to lose. "

GameStop share price explained: 6 things you need to know as stocks rise again

GAMESTOP shares more than doubled yesterday afternoon, echoing the frenzy that saw the stock soar 700% last month after it was targeted by an army of amateur traders. A trading frenzy surrounded th…

www.thesun.co.uk

 

[VictoriaAlgo]

Jesus even "The Sun" newspaper understands it! How stupid do you have to be not to realise we are all gambling.

"INVESTING and buying shares can be risky and should not be entered into without knowing what’s at stake.
It’s essentially betting that a company’s value will go up but it’s not guaranteed. You should only invest what you can afford to lose. "

GameStop share price explained: 6 things you need to know as stocks rise again

GAMESTOP shares more than doubled yesterday afternoon, echoing the frenzy that saw the stock soar 700% last month after it was targeted by an army of amateur traders. A trading frenzy surrounded th…

www.thesun.co.uk

As stupid as Paul Wilmott! However, you may gamble by seeking negative or break even expectancies, us stupid folk do not.

 

[postman]

For those snooty ones amongst us who dont read "The Sun" here's the pink uns take on gamblers.

"If you’ve been tempted to use CFDs, and subsequently lost or won money or experienced a “high”, you’re likely to be gambling ..."
"some investors are actually gambling without realising it...." (Like the ones who post here).

Investing vs gambling: a fine line to tread

Some platforms promote investments that carry a considerably higher level of risk

www.ft.com

The risk reward is not a differentiator, gambling is NOT a 50/50 outcome there are many bets which offer the same R/R as trading.
The 'house edge/ rake' argument is also null as you pay commission on trades which is the brokers edge. Traders also pay taxes which is also a house edge or rake.

In fact you are better off spread betting because you dont pay that tax! 😄

 

[cantagril]

For those snooty ones amongst us who dont read "The Sun" here's the pink uns take on gamblers.
"If you’ve been tempted to use CFDs, and subsequently lost or won money or experienced a “high”, you’re likely to be gambling ..."
"some investors are actually gambling without realising it...." (Like the ones who post here).

Investing vs gambling: a fine line to tread

Some platforms promote investments that carry a considerably higher level of risk

www.ft.com

The risk reward is not a differentiator, gambling is NOT a 50/50 outcome there are many bets which offer the same R/R as trading.
The 'house edge/ rake' argument is also null as you pay commission on trades which is the brokers edge. Traders also pay taxes which is also a house edge or rake.
In fact you are better off spread betting because you dont pay that tax! 😄

 

[tomorton]

Any question that is framed "Is A the same as B?" has a starting assumption that A is one single thing and B is one single thing.

In our case, B, gambling, is not one single thing. There are two basic types of gambling. So the question ought to read "Is trading the same as all types of gambling?". The answer to the corrected question is obviously, No.

 

[postman]

Any question that is framed "Is A the same as B?" has a starting assumption that A is one single thing and B is one single thing.

In our case, B, gambling, is not one single thing. There are two basic types of gambling. So the question ought to read "Is trading the same as all types of gambling?". The answer to the corrected question is obviously, No.

What is your definition of Gambling?
Because it is universally accepted as being ...
"gambling"
1. play games of chance for money; bet.
2. take risky action in the hope of a desired result.

How is it more than one single thing?

Trading is a subset of gambling.

 

[postman]

Any question that is framed "Is A the same as B?" has a starting assumption that A is one single thing and B is one single thing.

In our case, B, gambling, is not one single thing. There are two basic types of gambling. So the question ought to read "Is trading the same as all types of gambling?". The answer to the corrected question is obviously, No.

Your answer doesn't match the question so you say the question is wrong, I thought I was arrogant but I take my hat off to you. You might wish to start your own thread with the topic of your choice if the question doesn't suit you.

 

[cantagril]

Your answer doesn't match the question so you say the question is wrong, I thought I was arrogant but I take my hat off to you. You might wish to start your own thread with the topic of your choice if the question doesn't suit you.

You is definitely short of a bowl of cream there girl..... and for some reason I never figured you as a head-covering sort of cove.

The question, as phrased by the omniscient T2W Bot, was done so precisely to echo the facile "Yes it is, no it isn't...and besides, you smell" kind of childish squabble that this almost always degenerates into. If you look back to the beginning, the question was asked and answered in the first two posts. Anything after that is redundant.

 

[postman]

You is definitely short of a bowl of cream there girl..... and for some reason I never figured you as a head-covering sort of cove.

The question, as phrased by the omniscient T2W Bot, was done so precisely to echo the facile "Yes it is, no it isn't...and besides, you smell" kind of childish squabble that this almost always degenerates into. If you look back to the beginning, the question was asked and answered in the first two posts. Anything after that is redundant.

The answers given by an admitted Bot rely on the definition of the word gambling to be changed in order to meet the outcome trading is not gambling.
"The very short answer . . .
Maybe yes, maybe no; it very much depends on your definition of gambling"

"Under the revised definition, traders in this category are not gamblers. Or, at the very least, they are no more gamblers than the owners and directors of Ladbrokes or Ceasars Palace."

It then goes on to erroneously suggest that trading is like being the bookmaker or the casino which it is not. The bookmaker is the market maker or broker THEY always win, they take your money regardless of whether your trade makes you money or you lose. and THEY are NOT gambling. And they take money from the Trader (gambler) in the form of a spread and / or transaction fee.

Why does the thought that you are gambling with your money (or worse other peoples) irk so many people. Its a fact deal with it and carry on regardless, no one (here) is judging you for it. I guess when you are at a dinner party and people ask what you do 'gambling' doesnt really make you look good.

 

[cantagril]

I guess when you are at a dinner party and people ask what you do 'gambling' doesnt really make you look good.

I tend to stick with more respectable cover story careers, like Drug-dealer or Hitman. I'm far too ashamed to admit that I gamble...or is it trade?

 

[MasterOfCoin]

I tend to stick with more respectable cover story careers, like Drug-dealer or Hitman. I'm far too ashamed to admit that I gamble...or is it trade?

I find 'amateur child murderer' goes down rather well at such parties.

There's an aspect of self-indulgent satisfaction at play in observing the uncomfortable squirming around the table of those who'd rather not think about the cost of their wealth to those who pay the price for it.

But it's also the simple harsh reality of how the world works.

 

[tomorton]

What is your definition of Gambling?
Because it is universally accepted as being ...
"gambling"
1. play games of chance for money; bet.
2. take risky action in the hope of a desired result.

How is it more than one single thing?

Trading is a subset of gambling.
View attachment 295352

There are to broad types of gambling. Both types have uncertain outcomes but the player can affect the outcome of one whilst not being able to affect the outcome of the other.

Type A gambling - Roulette is a game in which the player cannot affect the basic outcome of their bet or game - the ball lands in a slot which it is impossible to predict and impossible to influence. The lottery follows the same rules: the ticket buyer cannot affect which numbers are drawn. The basic outcome is random: the player cannot use any skill or knowledge to affect the outcome.

Type B gambling - Card games and betting on sports events are different for the key reason that the player can use their skill or knowledge to affect the outcome of their bet or game. An experienced blackjack player will be able to increase their level of success over a novice. This might only be through card counting but that is a technique that the player brings to the game and which de-randomises the outcome. The casinos recognise this is possible and they ban it. Similarly with sports betting: the experienced and knowledgeable player will bet on Manchester United winning at home and not their opponents Burscough FC. The outcome of the game or the bet on the outcome is not completely random.

Therefore the original question, "Is trading the same as gambling?" is invalid as gambling is undefined. I do believe trading is a type of gambling, but Type B, not Type A. Its is more like sports betting than roulette. But the question is not answerable in a single Yes/No format.

A more interesting question might be, for example, "What human endeavour is NOT gambling?"

 

[TRADEMYSTYLE]

Trading is gambling only for those who think of the forex market as a get-rich-quick scheme. If you genuinely want to earn consistent profits, you must understand the fact that you can’t be rich overnight in this market. You have to work hard for that.

 

[Upgradzz]

Trading is not at all similar to gambling, trading involves fundamental and technical analysis of the market to place trades while gambling is nothing more than luck.

 

[BigDeal]

Trading is not at all similar to gambling, trading involves fundamental and technical analysis of the market to place trades while gambling is nothing more than luck.

So where do you believe poker playing sits? What about those who study and bet on horse racing?

 

[Windlesham1]

Think about a horse race- can you change your bet half way through the race? It's all or nothing. We trade typically <5% of our account at any one time. By the way the market hates that there are retail options traders making money- just try finding free options prices- you will find thousands of digital/forex/stock prices. What does that tell you?