I see quite often in posts something along the lines of "That is just gambling!"
Well, what are we, Traders or Gamblers?
The definition of gambling - "to bet on an uncertain outcome"
So the answer to the question is that all traders fit into the "Gambler" bracket. There is no such thing as a surefire winner in trading, horse racing, poker or sports.
When you bet on a horserace, the bookmaker sets the odds so that he is almost certain to pocket between 20 and 50% of the total different bets by the punters. Professional gamblers in horseracing will usually have inside knowledge and that gives them an edge.
The professional poker player will know instinctively what the odds are of him improving his hand and taking the pot against an idiot gambler that typically goes all in with a pair of Aces. This person has done his homework and studied, has a very good knowledge of the odds and that is his edge.
A lot of people who bet on sports bet with emotions, maybe just because their favourite team is playing.
I used to fish National team fishing competitions in the UK and I was amazed at the way nearly everybody who took part would line up at the bookmaker to hand over their money to bet on themselves and their team. It was quite obvious to me that the bookmaker would be returning less than 20% of the money staked to the winners. These people were trading with their emotions and hope. Realistically, they knew that they had very little chance of winning, but would bet at 100:1 when they must have known that their real chance was 1000:1. These people had no edge at all because they were up against the best in the field, but still they bet/traded with hope despite the odds being massively against them.
When we think of "Gamblers", we often classify them as those that place ridiculous bets in the hope of regaining losses.
Those that get angry when they lose more than they can afford and then scrape together some money to put a bet on bigger than their normal stake in order to get their "revenge" on the bookie.
The truth is that all traders are gamblers, it's just that the better traders are trading with an edge
Just as good poker players are gamblers, but they are also playing with an edge.
The good poker players have obtained their edge through a good knowledge of probabilities. They don't expect to win every hand, just know that they will come out on top in the end.
How many really good poker players signed up to an online poker course that cost $99 and guaranteed them success?
How many poker players that have yet again assured their wives that they have found the perfect system time an time again only to find themselves divorced, alone and living in a hovel. Scraping the stake to get into the next game totally consuming their lives.
The best poker players are the best because of their experience and their effort in learning about probabilities.
That takes effort and commitment. The best poker players are better traders than the average forex trader because they know and understand their craft.
What about the snooker and pool hall hustlers? They're real lowlifes aren't they.
They know that they are a better player than most and get them sucked into betting even money on themselves. The hustler will let you win a little and then bring out their skill. You get annoyed when you lose and will often bet bigger in a "revenge trade" thinking that you will win your money back.
The fact is that these pool hall hustlers are very good at what they do because they have put in hundreds or thousands of hours practicing.
The market is a hustler and will let you win a little bit and when you lose, you get angry, lose all common sense and the market takes back all your winnings and then some.
You lose to the hustlers because you think that you are a superior player and then find out the truth at your cost.
The funny thing is that most of us traders are not so different to the pool hall hustlers. For us to win, somebody else has to lose.
When you have a winning trade do you really care about the other trader that has lost?
No you don't, you don't even think about it.
The truth is that all traders are gamblers, but they prefer a more respectable name.
The only gamblers that win are those that put in the effort to become good at what they do.
Emotions have no place in the life of the succesfull gambler, the only thing that he is interested in is probabilities and likely reward when compared to risk.
A succesfull gambler will not have become so because of signing up to a $99 internet course.
A successful gambler will not be successful because somebody else tells him how to be successful.
A successful gambler is successful because he understands the probabilities of when he is likely to win or lose
A successful trader accepts responsibility for his losses and will learn from them.
Well, what are we, Traders or Gamblers?
The definition of gambling - "to bet on an uncertain outcome"
So the answer to the question is that all traders fit into the "Gambler" bracket. There is no such thing as a surefire winner in trading, horse racing, poker or sports.
When you bet on a horserace, the bookmaker sets the odds so that he is almost certain to pocket between 20 and 50% of the total different bets by the punters. Professional gamblers in horseracing will usually have inside knowledge and that gives them an edge.
The professional poker player will know instinctively what the odds are of him improving his hand and taking the pot against an idiot gambler that typically goes all in with a pair of Aces. This person has done his homework and studied, has a very good knowledge of the odds and that is his edge.
A lot of people who bet on sports bet with emotions, maybe just because their favourite team is playing.
I used to fish National team fishing competitions in the UK and I was amazed at the way nearly everybody who took part would line up at the bookmaker to hand over their money to bet on themselves and their team. It was quite obvious to me that the bookmaker would be returning less than 20% of the money staked to the winners. These people were trading with their emotions and hope. Realistically, they knew that they had very little chance of winning, but would bet at 100:1 when they must have known that their real chance was 1000:1. These people had no edge at all because they were up against the best in the field, but still they bet/traded with hope despite the odds being massively against them.
When we think of "Gamblers", we often classify them as those that place ridiculous bets in the hope of regaining losses.
Those that get angry when they lose more than they can afford and then scrape together some money to put a bet on bigger than their normal stake in order to get their "revenge" on the bookie.
The truth is that all traders are gamblers, it's just that the better traders are trading with an edge
Just as good poker players are gamblers, but they are also playing with an edge.
The good poker players have obtained their edge through a good knowledge of probabilities. They don't expect to win every hand, just know that they will come out on top in the end.
How many really good poker players signed up to an online poker course that cost $99 and guaranteed them success?
How many poker players that have yet again assured their wives that they have found the perfect system time an time again only to find themselves divorced, alone and living in a hovel. Scraping the stake to get into the next game totally consuming their lives.
The best poker players are the best because of their experience and their effort in learning about probabilities.
That takes effort and commitment. The best poker players are better traders than the average forex trader because they know and understand their craft.
What about the snooker and pool hall hustlers? They're real lowlifes aren't they.
They know that they are a better player than most and get them sucked into betting even money on themselves. The hustler will let you win a little and then bring out their skill. You get annoyed when you lose and will often bet bigger in a "revenge trade" thinking that you will win your money back.
The fact is that these pool hall hustlers are very good at what they do because they have put in hundreds or thousands of hours practicing.
The market is a hustler and will let you win a little bit and when you lose, you get angry, lose all common sense and the market takes back all your winnings and then some.
You lose to the hustlers because you think that you are a superior player and then find out the truth at your cost.
The funny thing is that most of us traders are not so different to the pool hall hustlers. For us to win, somebody else has to lose.
When you have a winning trade do you really care about the other trader that has lost?
No you don't, you don't even think about it.
The truth is that all traders are gamblers, but they prefer a more respectable name.
The only gamblers that win are those that put in the effort to become good at what they do.
Emotions have no place in the life of the succesfull gambler, the only thing that he is interested in is probabilities and likely reward when compared to risk.
A succesfull gambler will not have become so because of signing up to a $99 internet course.
A successful gambler will not be successful because somebody else tells him how to be successful.
A successful gambler is successful because he understands the probabilities of when he is likely to win or lose
A successful trader accepts responsibility for his losses and will learn from them.
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