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

  #6 (permalink)

Philadelphia PA
Trading Experience: Intermediate
Platform: Investor RT
Broker/Data: Stage5
Favorite Futures: FGBL
KatieD's Avatar
Posts: 7 since Aug 2016
Thanks: 3 given, 18 received

MacroNinja View Post
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.

I think you have just described why longer term trades or investing is less considered to be gambling. That sort of market participation is also NOT a zero sum game. Intraday trading IS a zero sum game. That point is the reason day trading is so contraversal. Why do I think I can win against big money and those with possible material advantages?

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The big sharks can compete with each other all they want. I'm one of those scavenger fish going after the scraps with my 1 or 2 lots! If you think more deeply about it, perhaps there IS a symbiotic relationship between small retail traders and the big guys.

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