How do you guys deal with this?....Intraday trading = gambling | Traders Hideout - futures trading strategies, market news, trading charts and platforms

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How do you guys deal with this?....Intraday trading = gambling

  #4 (permalink)

Buenos Aires Argentina
Trading Experience: Advanced
Platform: NT, MT4, Sierra
Favorite Futures: S&P, Bonds, Crude, FX
Posts: 250 since Sep 2014
Thanks: 37 given, 243 received

Let's assume for a moment that you are dealing in actual assets (stocks, bonds, currencies, etc) rather than options or non-deliverable futures. The biggest difference at the end of the day is that you own the asset, not the 'right' to make a bet with a possible payout.

If I put a bet on a roulette table, the value of the bet expires the moment the wheel stops and the bet is over. However, regardless of if Apple stock goes up or down from the moment I buy it, I still own Apple stock. Owning Apple stock doesn't ever catch up with you in a law of large numbers situation unless Apple goes bankrupt or starts to lose money.

Your job then, is to A) not over trade and over pay commissions, and B) properly value when the stock is under valued (buy) or over valued (sell)

The key skill set remains the same, which is assessing the future value of what you are putting your money behind. However, a gambler has to be right in a very short time window, plays by the casino's static odds, and doesn't own any assets.

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