What are similarities between trading and gambling?

Both are same. People not ready to accept the fact that trading is pure gambling.

if you gamble you will lose.

You are right. I'm not ready to accept that fact because I make money when I'm trading. I have not yet won money gambling.

hi,, hilar,,
thank you for the link,,dude,,
very interesting

I think one has to differentiate between gambling and betting.

As a professional trader (who is consistently profitable), one is actually using a well thought out betting system and just bets according to that system, which has a positive expectancy (which means he wins in the long-term).

As an amateur trader (who is not consistently profitable), one is just using hunches or indicators or whatever that is not leading to a positive expectancy. Like in the casino, they have a negative expectancy to win money (which means they lose in the long-term). This is in my opinion gambling.

so, gambling = losing money, professional betting = winning money and trading can be gambling as well as professional betting. Depends how one approaches this whole affair.

My definition, FWIW:

Profitable trading is the exercise of consistently applying a proven edge.

Gambling is anything that falls short of that.

you often lose money,

you can have multiple odds on ur side in trading and in gambling you only have luck on ur side.

that will make you busy to draw box and arrow

you can use this
darvas box http://www.forexfactory.com/showthread.php?t=62560


or this
flex box http://www.forexfactory.com/showthread.php?t=17423

http://www.forexfactory.com/attachme...1&d=1171157867

Depends what type of gambling.

If you're playing blackjack, you can't predict anything. If you're playing hold 'em, you can predict your opponents. You can learn their tells, whether they get nervous with the nuts and you can see a little shake in their hands or if they didn't land the nuts and try to stare you down. Even then, someone who gets pocket aces can play them horribad and get absolutely destroyed by 72o. (The statistically worst hand in hold em)

Even if your opponent has pocket aces, you can still make them fold. Likewise, if I'm long EU, some institution might see that there's a lot of people long at the wrong level and make them fold. (get stopped out or just lose all the money)

The main difference between trading and poker is that in poker, you can see the person you're playing against. In trading, you never do. (Unless you're in the pit)

Poker isn't just gambling. It's how you play the game that dictates whether you're playing poker or just gambling. Likewise, in the markets, if you have no idea what you are doing...

thank you for the information jasakreatif

What is Gambling?

Gambling is something which is not sure. So Forex is definitely Gambling as there is no 100% working strategy. Although one can use stops but still we are losing the money. So, accept the fact that trading is Pure gambling.

I think all kind of businesses are gambling? correct?

even a salaried person is also gambling, who knows his company will run away before paying him the salary?

agree,,

everything in this world is gambling,,
but everything have different levels of probability

there is high probability
there is medium probability
there is low probability
of course,, although high probability,,sometimes under certain conditions,,accidents can happen,,

thank you

Similarities:

Trade everyday - Gambler

Trade Short term - Oportunistic/Gambler

Diff:

Trade Mid/Long term - Investor.

All trading and investing IS gambling. When trading you are putting money on the line (betting) on an uncertain outcome.

Some people will take issue with this but it is a cold fact of trading. Those people don't understand gambling. They see it as just betting on dice or cards for a laugh or a thrill hoping to win money. But, there are professional gamblers who play cansino games of chance and make a living at it using the same strats as traders, such as money managment, watching your win loss ratio and having an edge that puts things in their favor.

Just like thier are inept gamblers who have no business playing games with serious money, so their are traders just the same. Just look in the EU thread, every so many posts you'll see some noob spout, "it's going north for sure load up on longs for all your worth!"

Probably more similarities than differences. If you're an experienced trader you can most probably gauge when odds are in your favor more times than not. Of course in trading odds cannot be calculated like they can be in a game of cards at a casino table. So the odds are perceived in trading. It's in detecting these opportunities of perceived advantage with consistency where skill and experience comes in to play.

let's have a poll.

I request thread starter to put a poll for this topic.

trading is too broad, but to simplify the difference is that gambling is chances and luck, odds is depending on what u play. If u trade 1:1 50 pips for 50 pips at any entry, it's the same as gambling but higher probability. Gambling big 4 u have 25% chance to win against other 3 players, gambling horses? u have how many chance?Blackjack? lol. It's dependable.

Trading can be refined into probability and consistency.

BUT Most retailers are gambling on Forex not TRADING!

BC they failed to realize what's are high probability trades and the power of compounding. Bigger TF, Bigger capital, bigger breathing room = investing = higher probability.

Small TF, HIGH leverage = speculations/bet.