Isn't trading almost like gambling?

[Kelward]

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

I personally think that crypto trading and gambling have more in common than what makes them different, the two share a common factor which is risk, although gambling risks can be said to be higher compared to trading risks, nevertheless they're both very profitable if their risks comes out positively. The difference that I see is that crypto trading has a parten and can be technically analyzed, so traders atleast knows how the market works and what drives the fundamental analysis, but it's not so in gambling, we gamble and depend on luck factor that we can not analyze to determine the outcome, except for sports bet where we can predict the team that'll win.

Your friend shouldn't chase loses, because he can become greedy and lose more money, so it's better for him to trade with the amount that he can afford to loose. 

[1714678778]

1714678778

[Alpha Marine]

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?

They both have similarities but they're not the same. In gambling, you're betting on the outcome of a game while in trading, you're buying something at a lower price with the hope that the price will increase so you can sell and make a profit.
Trading becomes gambling when you make a trade without proper technical and market analysis.
Trading is complicated, but with consistency and learning you can get better at it. It's a skill that needs to be studied. Nobody just gets up and becomes an expert in trading.

Also, I believe the best traders are the ones that focus on a certain thing or industry. Trading both forex and cryptocurrency at the same time is not advisable for someone who's still relatively new. Focus on one and with time when you're better you can diversify.

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

If his goal is to make his money back he may keep losing I'm afraid. The goal should be how to get better, and how to get more experience in trading. He should read more, and research more. And since he's not an expert, he should be trading smaller amounts of money. That way he won't lose most of his money.
Losing money is part of the trading experience, but there are ways to minimize your losses.

[Fatunad]

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

I personally think that crypto trading and gambling have more in common than what makes them different, the two share a common factor which is risk, although gambling risks can be said to be higher compared to trading risks, nevertheless they're both very profitable if their risks comes out positively. The difference that I see is that crypto trading has a parten and can be technically analyzed, so traders atleast knows how the market works and what drives the fundamental analysis, but it's not so in gambling, we gamble and depend on luck factor that we can not analyze to determine the outcome, except for sports bet where we can predict the team that'll win.

Your friend shouldn't chase loses, because he can become greedy and lose more money, so it's better for him to trade with the amount that he can afford to loose. 

Trading could really be only be called gambling on the time that you would really be that making yourself having some trades without having any basis on which you would really be just that basically making yourself
doing gambling and this is something which isnt recommended. You shouldn't really be treating up trading on this way. In the other hand on which we know that gambling is really just that leisure and its totally
that not the same if we do speak about trading. It is all different matters and on different ways on how you would really dealing up with it.

If you are someone who do make out trades without any basis then you are simply just making or doing gambling. We do know that it does require analysis and does required out that proper
approach rather than on making those pure guess on which you are really just that increasing your odds on making a bad or unprofitable or losing trade. If you do have this kind of approach
then it would really be better that you should have made out some gambling since from the start.

[Smack That Ace]

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.

This is the point of it, taking a risk doesn't equal to gambling because gambling is guaranteed to lose since the house edge guarantees that whereas life is full of taking risks. Trading is not "almost" like gambling, it has nothing to do with it, if you are a good trader then you will earn, there is no downside to it at all, you can be the greatest gambler in the world and you will still not make a living out of it because house edge prevents that.

So all in all, unless we are talking about something different, some variations of it, some detailed parts of it, the general concept of gambling and general concept of trading has nothing to do with each other. Gambling is not risk taking, those are two different things, not all risk taking would be considered a gamble.

Only people with no financial knowledge would say that trading and gambling are the same. One difference that everyone can easily spot is has anyone ever seen someone become rich through gambling? But there are many people who become rich through investment and trade.
Also, I think people who call trading gambling simply because they have failed in trading and want to deny their incompetence should call trading gambling. People who fail but never admit it is due to their own stupidity and are ready to blame anything they see.

[shawonngp]

Trading and gambling both have a lot of risks and you can't predict before start but some differences both of them. Trading will never considering as gamble for the professional traders, newbie traders have no knowledge and it will be gamble for them. $5000 is big losses it's not easy to recover in short time even need to big amount investment to recover losses.

[Eternad]

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 and Gambling are different. You are trading with the intention of investment while Gambling real purpose is to get entertainment through playing games.

They only have common factor which is risk. Both trading and gambling has risk factor but gambling is riskier than trading due to house edge and it’s pure luck nature while trading can increase your profitability with proper analysis skills. Those people that will assume that both are just the same are those who use gambling in a wrong way. Gambling is an expensive source of entertainment and not a financial tool.

[deathcode]

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?

when you trade not with skill and knowledge, then you trade like a gambler who bets with his money.
but when you know and understand trading, then you will know the difference between trading and gambling.

trading is not an easy matter. Your friend must be diligent to be able to return the funds he has lost in trading. and I don't think it will be easy and it won't be in a short time.

[Wind_FURY]

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.

This is the point of it, taking a risk doesn't equal to gambling because gambling is guaranteed to lose since the house edge guarantees that whereas life is full of taking risks. Trading is not "almost" like gambling, it has nothing to do with it, if you are a good trader then you will earn, there is no downside to it at all, you can be the greatest gambler in the world and you will still not make a living out of it because house edge prevents that.

So all in all, unless we are talking about something different, some variations of it, some detailed parts of it, the general concept of gambling and general concept of trading has nothing to do with each other. Gambling is not risk taking, those are two different things, not all risk taking would be considered a gamble.

Only people with no financial knowledge would say that trading and gambling are the same. One difference that everyone can easily spot is has anyone ever seen someone become rich through gambling? But there are many people who become rich through investment and trade.

But gambling in what? Casino games where you don't have an edge? Or gambling in a card game like BlackJack where you can have the edge at some particular moment in the game?

There's a difference, ser.

Also, I think people who call trading gambling simply because they have failed in trading and want to deny their incompetence should call trading gambling. People who fail but never admit it is due to their own stupidity and are ready to blame anything they see.

If a person enters ANY risk-taking activity where he doesn't have the edge, is that called "something else"? Or is it called gambling?

70% - 90% of people who like to call themselves "traders" are lose money over a large data sample.

https://www.quantifiedstrategies.com/what-percentage-of-traders-fail/

[bayu7adi]

I clearly see the equivalent of trading with gambling in memecoins. Yes, without any serious development or reasonable business model, I consider it as a medium to test luck like gambling. Buy a little for some memecoin or shit coin tickers and hope that one of the memecoin or shit coin assets you buy can go up and meet a high green candlestick. They call it the jackpot in gambling.

Isn't it like a lottery? Where someone can take high-risk gambling by buying several lottery numbers with different nominal amounts. Even though gambling and trading are essentially different, the risks can be the same.

BTW, I don't really like daily trading, and prefer holding. It makes me more calm by hodling on top coins.

[mindrust]

Pretty much yes. Especially if you rely on only technical analysis then it is not really any different than throwing dice. When you use fundamental analysis, then trading becomes like sports betting. You have some data you can study and make educated decisions based on that data. It still won't make you a trading expert because if it were that easy everybody would make the winning decisions and nobody would take the losing trades. As you quickly realize, it is somebody else's money you win when you make a successful trade. Just like how it happens in gambling.

[Hamza2424]

Trading and gambling both have a lot of risks and you can't predict before start but some differences both of them. Trading will never considering as gamble for the professional traders, newbie traders have no knowledge and it will be gamble for them. $5000 is big losses it's not easy to recover in short time even need to big amount investment to recover losses.

Hmm, quite straight forward answer but for a trader, the initial capital required to recover the losses should be from his portfolio, and as a newbie trader today diversifies their trades, mostly people go all in or unplanned and they lose their capital and I always use to say, the market is not like you are going to play every ball and gonna hit a 6, some times you need many dots to hit a 6.

The early condition is to maintain the wicket on the field and the capital is your wicket sae it and wait for the perfect entry, even though 5k is a big amount but for a trader who lost it under his strategy and risk management by saving most of capital can recover it in a few trades but for those who just netred and made an all in trade lost, Rest in .....

[Lakai01]

Pretty much yes. Especially if you rely on only technical analysis then it is not really any different than throwing dice. When you use fundamental analysis, then trading becomes like sports betting. You have some data you can study and make educated decisions based on that data.

That's one of the best comparisons of trading and gambling I've heard so far, thanks for that!
Gambling actually has a lot of elements of a (successful) trading strategy, or you can easily transfer the elements from gambling to trading ... and vice versa.

Above all, in both gambling and trading, you need watertight risk management to know when to leave the trade (or the game) and when to stay in the race. It doesn't matter whether it's a crash, Plinko or a Bitcoin trade. Without this strategy, you will lose significantly more in both trading and gambling than you were actually willing to bet.

[milewilda]

Pretty much yes. Especially if you rely on only technical analysis then it is not really any different than throwing dice. When you use fundamental analysis, then trading becomes like sports betting. You have some data you can study and make educated decisions based on that data.

That's one of the best comparisons of trading and gambling I've heard so far, thanks for that!
Gambling actually has a lot of elements of a (successful) trading strategy, or you can easily transfer the elements from gambling to trading ... and vice versa.

Above all, in both gambling and trading, you need watertight risk management to know when to leave the trade (or the game) and when to stay in the race. It doesn't matter whether it's a crash, Plinko or a Bitcoin trade. Without this strategy, you will lose significantly more in both trading and gambling than you were actually willing to bet.

Both are risky but on the sense that trading is something that you could really be able to apply such analysis then it lessens out that risks level that it does have. Also, when trying out to compare literally then
it would really be that impossible that you cant really be able to spot out their main differences on which means that you would be acting accordingly on which you would really be needing up that
different approach on which we know that this is something that you would really be needing to adjust out accordingly. Trading could really be turning out to be gambling if there wouldnt really be no analysis
that would be applied on the time that you do make out some trades. It would really be that impossible that you wont really be able to make out those kind of comparison.

You would really be able to determine about their differences on just simply making use of your own common sense on which most people dont really be able to mind it off
directly.

[boyptc]

Who's believing that in trading, there's also luck? If yes, then that means that there's really no difference at all. They've got their own nature but they've got their similarities too.

So, as trading with luck and gambling having that too.

As explained about making analysis with trading and gambling, you're doing always the same thing when the mother nature of both is all about taking risk of our money.

[Adbitco]

Please store this into your head that Trading and Gambling is a very different thing to say because i don't see where people looked at trading to be the same as gambling how and from where? At first gambling is a game of probability which you can't really defined the outcome what it would be and how much you are going to make per day, week and months or even year as it may be.

When you gamble any amount used to stake can easily be gone forever without you even having a return or a refunds but comparing to trading, there is a huge difference. If you are trading cryptocurrency such as bitcoin then the risk of losing is very poor but if you are trading binary then their is every possibility to entirely sweep your account if you don't mind lot size before place your order.

Your lot size determines when your account should be empty and drained entirely.. Let say you funds your account $1000 and you want to use the lot size of 10.0 this simply meanings in every movement of your candle you are risking equivalent to $10, but if you reduces your lots size to 0.01 then this is how your lost and profit is also determined.

But some people are too greedy to increase their lot size to 20.0 while they fund only $200 how did they expect to run long on the market and if they market goes side against them then automatically they swipe off their account at this point would say gambling and trading is the same.

[radjie]

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 clear that trading is very different from gambling, in trading we can determine when to make purchases and set profits according to our wishes, by setting the selling price above the buying price.  This is different from gambling, looking for luck with it, and we cannot guarantee that we will always get lucky, because the money we spend on gambling cannot guarantee that we will always win the game.

[Rengga Jati]

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 indeed risky. And sometimes it is quite similar to gambling. But basically, the two are slightly different. There is a process in the form of analysis in trading. Analysis includes several things, including fundamental analysis and also technical analysis. If a trader can reach this and analyze it well, then at least they can understand and develop strategies for their trading process. Not always for profits and will never lose. No, but how do they get bigger gains than losses? especially if it is a day trader. They must make sure they get more gains or profits in a day than losses. So as long as they can try other trading pairs and with market evaluation, they might be able to.

However, if they do it without any particular preparation and even just follow the trend, then this is called suicide. And not everyone can handle it. In this case, just try to see what your friend's condition is like next.

[stadus]

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 and Gambling are different. You are trading with the intention of investment while Gambling real purpose is to get entertainment through playing games.

They only have common factor which is risk. Both trading and gambling has risk factor but gambling is riskier than trading due to house edge and it’s pure luck nature while trading can increase your profitability with proper analysis skills. Those people that will assume that both are just the same are those who use gambling in a wrong way. Gambling is an expensive source of entertainment and not a financial tool.

Both have the end goal of profits but trading is likely to give more profits than losses while gambling on one side is going to make you lose most of the time and enable you to gain some profits only when you got your luck. They’re not really the same, it’s just that the one who often lose in trading thinks that it’s actually same like gambling, but if you are really trading while maximizing your own potentials in the market and trade based on your experience and acquired knowledge, you will never come to see gambling in your own profitable trades. It’s all about your gained knowledge, developed skills and enhanced strategies that made you successful in trading.

[Xampeuu]

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 and Gambling are different. You are trading with the intention of investment while Gambling real purpose is to get entertainment through playing games.

They only have common factor which is risk. Both trading and gambling has risk factor but gambling is riskier than trading due to house edge and it’s pure luck nature while trading can increase your profitability with proper analysis skills. Those people that will assume that both are just the same are those who use gambling in a wrong way. Gambling is an expensive source of entertainment and not a financial tool.

Both have the end goal of profits but trading is likely to give more profits than losses while gambling on one side is going to make you lose most of the time and enable you to gain some profits only when you got your luck. They’re not really the same, it’s just that the one who often lose in trading thinks that it’s actually same like gambling, but if you are really trading while maximizing your own potentials in the market and trade based on your experience and acquired knowledge, you will never come to see gambling in your own profitable trades. It’s all about your gained knowledge, developed skills and enhanced strategies that made you successful in trading.

Trading is not just a speculative factor like in gambling, but by trading at the beginning we already have a framework and from that we already know the risks and rewards, so we can create a clear portfolio in the long term, of course in trading we will not always experience profits. However, how can we be disciplined in the framework that has been created, so that if we experience losses, we are still in the healthy trading category.

[traderethereum]

In trading, there is an analysis that traders must carry out. They usually already have a buying and selling target, so they sell or buy it after reaching their target.
A trader should not be greedy. And if he only analyzes without having a selling target, he may miss the moment to sell. If he cannot analyze and follow signals or buy carelessly, he will have difficulty making a profit.
What @OP did was not trading but investing because he didn't sell it after buying. After all, trading means buying and selling, which is done within a certain time. And trading is not gambling as long as he can analyze the market well. He knows when he can enter and exit the market.