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


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

  #27 (permalink)

New York, New Jersey/USA
 
Trading Experience: Intermediate
Platform: NinjaTrader
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pinetree View Post
I typed "gambling" into google and found this as the definition: Gambling is the wagering of money or something of value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods.

Is that not what you do when trading? You make a wager on an uncertain outcome (future price change) with the intent of making additional money. Not much different than betting on the outcome of a sporting event. Although trading is a little more risky because in sports betting you can never lose more than you wager, but in trading there is always the very small chance of an outlier event (remember Swiss Franc 2 yrs ago?) causing you to lose much more than you expected.

I mean come on... trading is a form of gambling. Just admit it! This topic always used to come up from time to time when I used to spend a lot of time reading forums. People would try to argue that trading was not gambling, and if that didn't work the next step was to come up with all kinds of analogies to show that all of life was a gamble. Such as suggesting that running a business was gambling, or driving to work every day was a gamble, etc. LOL. I figure it's because gambling has such a negative reputation that many people do not want to be associated with it at any cost, hence all of the rationalizing.

The way I see it is:

If you don't know what you are doing because of lack of knowledge, experience etc. then trading is definitely gambling.

If you know what you are doing and have proven it with a meaningful track record then it most definitely is not gambling.

Successful traders are not gamblers, their "bets" are taken when the odds are overwhelming in their favor, knowing then that is the case is the hard part. You can tell if someone is not there yet when they start calling trading gambling.

Just my two cents worth...

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