Difference between trading & gambling?

[herry_fxhope]

what is difference between gambling and trading?

[Webster]

Originally Posted by herry_fxhope

what is difference between gambling and trading?

We can calculate the probability of probability. Google it.

There may be less variables in poker vs forex so that would be my
first variation ( no pun intended) plus a plethora of aditional influences

Think about it...
You (We) are participating in an Multi-TRILLION -(a day)-market and get
serious .....
http://www.youtube.com/watch?v=cnW6GM2XPQs

Webster
E$P$

[ForexMagnates]

Most traders are gamblers but prefer to think of themselves as Wall Street bankers rather than Vegas gamblers. Number of people who actually consider forex trading a profession is dismal.

[herry_fxhope]

Thank's about your answer.

[tomo1]

Probability: 50/50
Profitability: endless, very big since you can chose high leverage

Originally Posted by Webster

We can calculate the probability of probability. Google it.

There may be less variables in poker vs forex so that would be my
first variation ( no pun intended) plus a plethora of aditional influences

Think about it...
You (We) are participating in an Multi-TRILLION -(a day)-market and get
serious .....
http://www.youtube.com/watch?v=cnW6GM2XPQs

Webster
E$P$

[csvw]

no, forget gambling, we should choose speculation.

[canam980]

gambling ?

[shirley]

The only difference between gambling and trading is that your amount at risk and amount of potential reward varies with trading.

[goldie123]

One side of the trading-gambling comparison is the entertainment perspective. Gambling is intended to be entertainment, despite all the efforts to make a killing at the tables or whatever. Trading, though, is not supposed to be for entertainment value. It’s all about profits. Anyone who plays the market for fun has to seriously evaluate what he/she is doing because enjoyment and long-term profitability often do not go hand-in-hand.

[jackie101]

Originally Posted by ForexMagnates

Most traders are gamblers but prefer to think of themselves as Wall Street bankers rather than Vegas gamblers. Number of people who actually consider forex trading a profession is dismal.

I disagree. Traders are not gamblers, they are tecnical people who trade on facts and figures.

[KajolThappar]

Yes. However, you can create better odds than in a casino if you respect the market and risk management.

If you want to invest in the stock market and not gamble, then forget about price movement. Find quality profit making companies that pay dividends. Then you're really buying an asset, thus an investment.

You wouldn't buy rental property without having tenant. So why invest in companies that don't pay dividends? If you buy and continue to hold quality stock in companies that continue to generate profit and pay good dividends then you're return on investment isn't the share price, but the accumulation of dividends from your purchase price.

In a nutshell: If you're buying low and selling high then yes, you are gambling. If you're accumulating stock in several quality companies to build a second income stream through dividends, then you are investing. I have 2 seperate trading accounts so I can do both.

You won't get super rich by investing in the stock market, but you will at least be able to sleep at night.

[goldie123]

The speculator makes a trading decision based on some type of analysis and can modify his risk and capital committed to the trade through time. The gambler, however, once the bet is placed, is now an observer and the rules of the game now control the outcome.

[profit]

Trading is a good thing, gambling is a bad thing.In trading, the odds are in your favor, in gambling , the odds are against you. gambling can be addictive and destructive but trading can't.

[marrabel]

Trading and gambling are very related things and there is very peculiar difference between the account and the possibility to lose in trading and in gambling.

[chin100]

To me, these are the differences -

A gambler is in it for quick bucks. A Forex Trader knows that profits often take time.

A gambler is caught up in the excitement. A Trader knows that the job is boring, repetitive and mundane.

A gambler has the odds against him. A Trader has a back tested edge that, over time, will consistently win.

A gambler focuses on the potential for winning, with no concept of risk. A Trader focuses on the risk before anything, knowing profit will come as an after thought.

[orni308]

Originally Posted by goldie123

The speculator makes a trading decision based on some type of analysis and can modify his risk and capital committed to the trade through time. The gambler, however, once the bet is placed, is now an observer and the rules of the game now control the outcome.

Well said, both has risk, but in forex there is a calculated risk whereas in gambling you cannot predict anything, its purely based on your luck.

[unclegober]

I think forex is not one of the gambling business, because in forex we not only speculative but we are required to be able to analyze the market and the market movement chart, traders who rely only speculative will never succeed in this business. We need more experience and knowledge in forex to get a better result. So, it's not game as well.