Isn't trading almost like gambling?

[Rockstarguy]

Today I visited a friend who is a forex trader, according to him he trades on the USD, gold and BTC and I normally don't fancy the idea of trading because it appears a bit complex for my understanding and from my little knowledge, it seems as though trading is almost same as gambling because at the end of your analysis you're not sure of the outcome of the trade since it's basically a short term adventure and the volatile nature of most traded items depict it to be uncertain with time.

Trading can be consider to be gambling when one doesn't have any knowledge of trading but trying to trade just to make money in trading.  People plays gambling by predicting and can't really tell what will be the outcome of the result. When people trade and do not know what they are doing it can considered to be gambling and not trading .

Trading is an act that people must learn to have knowledge to know what they are doing.  Their are risk in trading but the risk in trading can be reduced by gaining knowledge,  but people play gambling and expect to win by luck. In trading it is impossible to gain profit or expect profit just by luck. Trading is all about learning for profit to be achieved,  so I think if have the mindset that trading is by luck do not make mistakes going into trading because you may end up regretting the decision you took.

Trading is not gambling,  trading works well by the knowledge and experience you have. Many who thought that trading is just like gambling ended up losing a lot of money in gambling.

[Smack That Ace]

it seems as though trading is almost same as gambling because at the end of your analysis you're not sure of the outcome of the trade since it's basically a short term adventure and the volatile nature of most traded items depict it to be uncertain with time.

This is also happening in your daily life. When you apply for a job, are you sure that the company will hire you? Or when you study and work hard, are you sure that you will have a rich life in the future? Basically, our lives are a gamble because no one can be sure and know what will happen in the future. Furthermore, as you said, you do not understand anything about trading, financial markets, bitcoin... nor do you have any knowledge about it, so on what basis do you think it is similar to gambling? You should not jump to conclusions about anything if you know nothing about it.

[Alana Arden]

Making money in any investment requires risk. Both trading and gambling involve a lot of risk. But business is not gambling; business is mastered. Trading is considered gambling only when one has no knowledge or experience in trading. But gambling must be left entirely to luck, where no skill or trick is of much use. On the other hand, apart from luck in trading, you need deep research, market understanding, skills, and knowledge of different strategies.

[moneystery]

basically trading and gambling are two different things, trading is an activity to seek profit where a person uses analysis on a market, while gambling usually involves luck and people who gamble are to get money in a short time. however, people who trade can gamble on their decisions if they take a crucial decision with high risk and ignore the factors they usually use.

indeed, to lay people trading and gambling seem the same, but fundamentally the two things are clearly different.

[Millinillion]

Technically, if you use a good strategy, indicators, and timing, trading has nothing to do with gambling. However, some people don't have enough patience or knowledge, so they are basically gambling instead of trading, especially when they trade futures with big leverage.

[GeorgeJohn]

Technically, if you use a good strategy, indicators, and timing, trading has nothing to do with gambling. However, some people don't have enough patience or knowledge, so they are basically gambling instead of trading, especially when they trade futures with big leverage.

why some people are comparing gambling with threading is because of both of them experiences same opportunity and same time experienced losses, from my perspective as I narrated before we don't need  to equate both, let us bear in mind that gambling is out more disadvantages trading trading, because trading is something that you can control it measures of disadvantages why gambling you cannot control it measure of disadvantages because you don't know what to do at the point in time when you want to venture into loss you will not understand the procedures to by cut it not to venture into loss.

[Sim_card]

My question is, isn't trading almost like gambling considering it uncertainty and also looking from the fact that he has lost a fortune out of trading within a short space of time?

Is it possible for him to easily recover his money back or is losses like that very much a part of the trading experience?

Trading is not gambling because someone can learn trading and become a professional trader, when he has known the strategy that he can use to make profit in the market. But there is no professional gambler, as you will keep on trying to learn gambling, and come up with all sort of strategy so that you can win the game, but if it is not your lucky day, all effort will be in vain. Trading is not based on luck, but more of skills. However, trading and gambling are similar in terms of the risk involve. This is because you are trying to predict the price movement of bitcoin in a short time, and they both involve messing with our emotions. Gamblers lose more than they win, same with traders that are not a pro, they lose more than they win. A lot of newbies go into trading without any knowledge of the market, making it more of gambling to me than trading.

[Wiwo]

Aside from the risk differentiation,  trading and gambling have nothing to be compared to each other and in fact, both are of different classes,  but because of the risk of losing almost everything that is available in both,  we tend to make the presumption that trading and gambling are the same,  but if you give a further close look to both,  you will discover that trading has it own unique feature and it more or less an asset purchase where if you don't gain,  you still holds the asset,  but gambling is like an air where you are given balloon money which can either boost 100% or you win all.

In trading, you can't lose 100% but in gambling, all your money may be gone within a second,  most especially in games that don't offer you available cash-out.

[Millinillion]

In trading, you can't lose 100%

You can. If you're trading futures with big leverage you can get liquidated and lose everything. Same thing if you do spot trading, you are exposed to a rug pull no matter which asset you're trading.

[Rruchi man]

Today I visited a friend who is a forex trader, according to him he trades on the USD, gold and BTC and I normally don't fancy the idea of trading because it appears a bit complex for my understanding and from my little knowledge, it seems as though trading is almost same as gambling because at the end of your analysis you're not sure of the outcome of the trade since it's basically a short term adventure and the volatile nature of most traded items depict it to be uncertain with time.

Your friend does not seem experienced in trading currency, commodity and cryptocurrency. Instead of trying to trade Crypto and then trying to trade forex at the same time it's better you train just concentrate on one type of trading.

Trading is different from gambling because trading is a sustainable skill that you can depend on to make income but not gambling because with gambling especially when gambling on games that demand luck, it is not a sustainable source to depend on for income, and there are no guarantees that you will get better with time.

He has lost almost $5000 dollar in course of his trade and he is still positive that he is going to recover all is lost money back in his next trade.

To have a successful trade requires more than just positivity. It requires a lot of strategy and skill, and so far what I can tell is that this your friend lacks both of them because just positivity is not enough for him to win back the money that he has lost. He has to stay away from trading for awhile and evaluate his strategy, talk to a few people who are more experienced than he is in trading, so they can help him become a better trader with some tips.

[Gladitorcomeback]

My question is, isn't trading almost like gambling considering it uncertainty and also looking from the fact that he has lost a fortune out of trading within a short space of time?

You want to put trading in gambling in same category which is not true. both may have some similarities like uncertainty and the potential for both gains or losses but they are totally different from each other.

Trading involves carefully analyzing market trends,l where you will employing strategies based on your research and deep analysis. Similarly your will manage risk through various techniques such as stop-loss orders and other tools like position sizing.  successful traders trying manage their portfolios over time.

On the other hand if we see, gambling totally relies more on chance or luck with outcomes determined by random events rather than analysis or skill which is key factor of trading. In gambling, the odds  stacked against the other player.  Im gambling there is no control over the outcome.

Is it possible for him to easily recover his money back or is losses like that very much a part of the trading experience?

Yes if your friend have good amount of money than he can recover. I lost 1200$ some days ago and then recovered in 24 hours.

[Mpamaegbu]

Step 1
You trade for $200 and loose it all.
Step 2
Next time you trade for $400 to recover it all.

Conclusion: You are a gambler and not trader confirmed.

Yes, that's true. It's called revenge trading. Those who do it are likened to gamblers. However, that's not how trading works. Trading is premeditated on exchange of one goods/currency for another unlike gambling. Those who liken it to gambling do so because it carries losses too as if there's any business venture that's free from losses. Traders shouldn't shy away from embracing it whenever it comes.

[gabbie2010]

My question is, isn't trading almost like gambling considering it uncertainty and also looking from the fact that he has lost a fortune out of trading within a short space of time?

Is it possible for him to easily recover his money back or is losses like that very much a part of the trading experience?

Trading is a complete different ball game compare to gambling though both requires analysis before taking a decision, however trading both crypto and forex trading is an art that requires acquiring some valuable knowledge before becoming a consistent and profitable trader it's a lot of years of experience to become a profitable trader I believe that is why your friend is determined and insistent on trading though he is trading the most volatile pairs gold and BTC, I believe it's because he had already lost $5K that is why you classified trading as gambling, it is very possible that he would recover his lost fund, personally I will choose trading instead of gambling being a trader myself as well as a soccer gambler.

[AmoreJaz]

My question is, isn't trading almost like gambling considering it uncertainty and also looking from the fact that he has lost a fortune out of trading within a short space of time?

Is it possible for him to easily recover his money back or is losses like that very much a part of the trading experience?

Trading is a complete different ball game compare to gambling though both requires analysis before taking a decision, however trading both crypto and forex trading is an art that requires acquiring some valuable knowledge before becoming a consistent and profitable trader it's a lot of years of experience to become a profitable trader I believe that is why your friend is determined and insistent on trading though he is trading the most volatile pairs gold and BTC, I believe it's because he had already lost $5K that is why you classified trading as gambling, it is very possible that he would recover his lost fund, personally I will choose trading instead of gambling being a trader myself as well as a soccer gambler.

Trading will only be like gambling if you go into this activity without any weapon to use, like your knowledge about the market, the coins you want to trade with. It is like you are jumping blindly here. But if you will employ your experience, your knowledge about TAs, and have good background about the projects, I believe you have a better chance on this aspect of crypto business.

In gambling, especially if you play on luck-based games, you only need luck to win. Whereas, in trading, you need knowledge, skills, and strategies to win or earn profits. Meaning, it is not all about luck to come out alive in trading. However, ask yourself if you are up to this kind of game, the stress and the sleepless nights just to make an analysis of what's going on with the trading market.

In trading, if you won't give up early and instead hone your skills and knowledge, the possibility to recover your earlier losses is I would say very high. Because as you go thru your trading journey, you will understand more about the market and so you can deploy your own techniques to gain profits. At this time, you are not relying on your luck anymore but on your knowledge and tactics about the market.

[Nrcewker]

You can definitely say this. Trading is like gambling only, but there are differences also. Gambling is considered as game of luck. Whereas trading can be considered as game ok skill along with luck. The only criteria where to you can consider both as same is the risk taking feature. In both cases we put money on stake, and take risk to make profits. So if you think like that, then yes gambling and trading are similar. Hope, your friend recovers the money soon.

[Wind_FURY]

My question is, isn't trading almost like gambling considering it uncertainty and also looking from the fact that he has lost a fortune out of trading within a short space of time?

It is gambling, and in the right context, LIFE is a gamble including something simple like walking out of your house. You simply don't know what will come next in your life.

In the context of trading, it's either a calculated gamble, or merely careless risk-taking.

Is it possible for him to easily recover his money back or is losses like that very much a part of the trading experience?

"Easily" depends on the size of his capital. If $5,000 that he lost is just 1% to 5% of his trading capital, then definitely he can easily recover his money back. But if that $5,000 is months of savings from his salary, then there's a very high probability that he will never recover all that loss back through "trading".

[JayTrain]

In my experience, trading in forex and cryptocurrency markets can be risky, especially for those lacking sufficient knowledge and experience. Losses, like the ones your friend experienced, are not uncommon and can be part of the learning process. However, it's important to learn from such mistakes and reassess one's strategies. Some may view trading as a form of gambling, particularly when done without adequate market analysis and understanding. Success in trading typically requires strict discipline, careful planning, and continuous learning.

[leonair]

Such topics have been created before and have been discussed a lot. Trading is very risky, but when one does future trading or leverage trading, it becomes more dangerous because the more leverage is taken, the more risk there is. And since in cryptocurrency no one can guarantee what a coin's price will be when, a wrong entry can easily lead to zero balance very quickly. It's really work like gambling. So it should be avoided by those who cannot afford to accept its risks and losses

[kojektea]

the risks of trading and gambling are almost the same, because of the uncertainty,
but it applies if you trade short term, it doesn't apply if you trade long term, it's very different,
Usually short-term & future trading is carried out by people who already have skills in market analysis.

he can return his capital, but not instantly, he has to be patient with the process

[Hamza2424]

Today I visited a friend who is a forex trader, according to him he trades on the USD, gold and BTC and I normally don't fancy the idea of trading because it appears a bit complex for my understanding and from my little knowledge, it seems as though trading is almost same as gambling because at the end of your analysis you're not sure of the outcome of the trade since it's basically a short term adventure and the volatile nature of most traded items depict it to be uncertain with time.

My question is, isn't trading almost like gambling considering it uncertainty and also looking from the fact that he has lost a fortune out of trading within a short space of time?

Is it possible for him to easily recover his money back or is losses like that very much a part of the trading experience?

As you've mentioned you found trading a bit complex and if you are finding it complex means you don't acknowledge everything that's the reason you are saying that isn't trading like gambling to remove this a small difference between the trading and gambling borderline you need to learn about what trading is and how works, you need to learn about market, trading terminologies, and other skills related to trading.

First of all trading without knowledge is gambling and on the ending node I would like to say we've already discussed such gambling vs trading topics many may times and there's no room to discuss the entire topic against for that OP you should consider searching those topics and making efforts to learn about your queries from those topics and discussions.