Trading vs gambling

[OsaiEmma]

I was discussing with my friend some time ago, he said something about forex trading, he said there is no difference between forex trading and gambling, they both, he said, his father's friend is a professional gambler, before predicting games, he opens different screens, analyzing games, having charts showing the performance of teams and players, like he takes his time and his predictions are often very correct (not 100% though), these are his points.

1. They both work with predictions.
2. They both are uncertain.
3. They both need analysis to carry out predictions.
4. Luck is required in both

So I'm asking, are both the same, if not, what are their differences

[Oshosondy]

4. Luck is required in both

This is the main difference between trading and gambling. Gambling requires luck but trading is not just about luck if you know what you are doing.

Trading is very risky like gambling, many people are trading like they are gambling is the reason they are losing money more than they are winning money while trading.

[chigo]

From what I know, gambling is divided into several categories, and typically, the types of gambling we can analyze fall into the skill-based category, such as lotteries and sports betting. However, slot gambling is purely based on luck.

Speaking of trading, if you don't learn trading radar, you're playing slot gambling, because you're relying solely on gut feeling and not pure analysis.

However, many people, especially beginners, still don't know the difference between the two.

[Natalim]

It would only be different if you approached gambling the same way you treat trading. Meaning you actually work for it, do analysis, and grind before making a prediction. But that’s not the case for most bettors. Most people just bet based on gut feel, and these same people treat trading differently.

So I believe you can’t really be successful in both betting and trading at the same time. If I had to focus, I’d choose trading and try to be profitable there, and just use gambling as a way to spend a portion of the profit for fun.

[swogerino]

I was discussing with my friend some time ago, he said something about forex trading, he said there is no difference between forex trading and gambling, they both, he said, his father's friend is a professional gambler, before predicting games, he opens different screens, analyzing games, having charts showing the performance of teams and players, like he takes his time and his predictions are often very correct (not 100% though), these are his points.

1. They both work with predictions.
2. They both are uncertain.
3. They both need analysis to carry out predictions.
4. Luck is required in both

So I'm asking, are both the same, if not, what are their differences

As long as both require luck to win in them I would say staying away is the best thing to do. In trading many people say that if you study well enough the market you can be profitable in it, something which is absolutely not true. I have seen people destroy themselves from trading much more than I have seen in gambling. This is not to say that gambling does not destroy you but I have seen colleagues staying sleepless during many nights waiting for EUR/USD bet signals going to their phones, these very people have lost everything in a short amount of time, only because they thought they were smarter than the system. Same can be said for gamblers so for me there is no difference between the two.

[Botnake]

If I really wanted to pursue being successful, I think trading is the answer. I can work on my skills with all the market news and trading techniques, and there are a lot of successful traders out there so it doesn’t feel impossible.

But with gambling, even though some people think they can make it work, there aren’t many who publicly say they have a strategy that makes them profitable. And if there are, we should doubt them, because they always say the truly successful gamblers keep everything to themselves.

[OsaiEmma]

4. Luck is required in both

This is the main difference between trading and gambling. Gambling requires luck but trading is not just about luck if you know what you are doing.

Trading is very risky like gambling, many people are trading like they are gambling is the reason they are losing money more than they are winning money while trading.

Well I said luck because, not everything you open a chart and see a good setup, you might have just missed that perfect setup when ur sleeping, some people do set pending order too, but it's not Everytime it gets to ur pending order and sometimes it just misses it, sometimes u'd be lucky, sometimes u might not be

As long as both require luck to win in them I would say staying away is the best thing to do. In trading many people say that if you study well enough the market you can be profitable in it, something which is absolutely not true. I have seen people destroy themselves from trading much more than I have seen in gambling. This is not to say that gambling does not destroy you but I have seen colleagues staying sleepless during many nights waiting for EUR/USD bet signals going to their phones, these very people have lost everything in a short amount of time, only because they thought they were smarter than the system. Same can be said for gamblers so for me there is no difference between the two.

IKR, it takes much more than knowing and analyzing the market, large capital and some form of luck is required, or maybe large resources is needed

From what I know, gambling is divided into several categories, and typically, the types of gambling we can analyze fall into the skill-based category, such as lotteries and sports betting. However, slot gambling is purely based on luck.

Speaking of trading, if you don't learn trading radar, you're playing slot gambling, because you're relying solely on gut feeling and not pure analysis.

However, many people, especially beginners, still don't know the difference between the two.

Yes that is true, there are different types of betting, slot doesn't need any form of analysis but u can apply risk management to it too which is also applied in trading

[death69]

Everyone doing analysis, everyone staring at screens, everyone thinking they'd cracked something. And maybe they have? The professional gambler your friend told you about... he's running a business. He's found inefficiencies and exploited them, he's built a process. That's behavior of a trader when inside a gambling wrapper.

The labels don't help us here. What helps: understanding: where does the edge comes from. In trading edge- info asymmetry, speed, access to capitals In gambling, edge is with the house (always) except for the rare animal that discovered a leak.

Both of these activities appeal to the same personality. Both reward discipline and punish emotion. The difference? One industry is pretending to be respectable. The other knows very well what it is.

Honestly? That self-awareness may be worth something.

[Gost ms]

Forex trading and betting on game predictions are two completely different things. Because forex trading seems to me like a business because to do forex trading a person has to know a lot about it, he has to learn about world politics, he has to know about many types of candles, he has to know a lot about the market, etc. A person has to know a lot if he wants to do forex trading.

If a person bets on game predictions then he doesn't know much and he bets on guesses, sometimes he wins and sometimes he doesn't. So I think they are two different things

[Findingnemo]

Predictions are nothing but random events too, when you use different indicators on the chart then you will get different outcomes.

Trading and gambling share fair share of characteristics but both are not same and you said his father used multiple screen to predict the outcome of his bet which itself a wrong thing, no one can predict the future but with trading you can get into an idea but again nothing is guaranteed in both fields.

[Yorubek]

4. Luck is required in both

This is the main difference between trading and gambling. Gambling requires luck but trading is not just about luck if you know what you are doing.

Trading is very risky like gambling, many people are trading like they are gambling is the reason they are losing money more than they are winning money while trading.

I agree with you, through trading a person can gain specific knowledge and over time can make himself more skilled and gradually become a successful trader. But this is never possible through gambling, no matter how much we research, we have to depend on luck to win while gambling, if luck is not good, you cannot win by betting. I think this is the main difference between gambling and trading.

[joeperry]

So I'm asking, are both the same, if not, what are their differences

What's on your list is right, actually I sometimes considered gambling/sports betting and forex/crypto trading the same. However, there are some things that trading have an advantage at, in trading you can do multiple strategies (proven strategies) that would help you win trades, on the other hand you can't do any strategies in sports betting, only analysis (which same as trading) but one also different thing is that the gambling sites always wins, those odds you see is not fair as it seems, what I mean is that even though it's a sports betting, they still have house edge on it just as their casino, so in long term, you will be on negative in gambling sites (not unless they offer 0% house edge) and in trading sites, you can actually have positive output in long term as long as your strategy works, the only thing you need to consider is the trading fee, which is really small for regular (not whale) traders.

[Taskford]

I was discussing with my friend some time ago, he said something about forex trading, he said there is no difference between forex trading and gambling, they both, he said, his father's friend is a professional gambler, before predicting games, he opens different screens, analyzing games, having charts showing the performance of teams and players, like he takes his time and his predictions are often very correct (not 100% though), these are his points.

1. They both work with predictions.
2. They both are uncertain.
3. They both need analysis to carry out predictions.
4. Luck is required in both

So I'm asking, are both the same, if not, what are their differences

They maybe look a like with your description posted but actually they are not the same.

Gambling primarily rely on chance and luck, while trading is been done doing proper discipline, analysis and long term wealth building.

Lots of people got confused about this but they should take it differently. They are just creating a scene which confuse them and better not to think their similarity. If they want to gamble then do it for entertainment, but also if they want trade better focus on its technicalities so that they can possibly earn with their trades.

[Rikafip]

I was discussing with my friend some time ago, he said something about forex trading, he said there is no difference between forex trading and gambling

If you don't know what you are doing, trading is indeed no different than playing for example roullete.

That's eactly the reason why I stopped trading, since I wasn't willing to invest time and effort into it so in the end it was just like gambling, just being less fun than going to casino.

[laspol65]

If I consider the risks, then both trading and gambling carry the same risks, gambling has the risk of losing money and trading also has the risk of losing money. However, the difference between gambling and trading is that gambling is more dependent on luck but trading is more dependent on experience. If you know what you are doing, you always have to use experience in trading, and where you are trading, all these things are very important in trading. But there are signs of addiction in gambling, and there is also a much higher risk of losing money.

[Youngrebel]

Its a tricky one anyways; Gambling and Forex trading are quite different  though they share much similarities.
Forex trade as the name implies is a trade. A market trend that you can follow and invest and you get your returns. The returns in trading are moderate. Makes sense more than the the gambling options that you see that sometimes looks unrealistic to achieve..

Gambling on the other hand  is another level of risk. Though sometimes you can get odds for the games you are playing but its level of
risk is higher. The smounts to play with is smaller with a higher winning amounts which to me makes it more risky and unrealistic.
The fact still remains that they are both risky and you need to study on previous events to get it right if atall you will get it right

[cryptomaniac_xxx]

As far as I know you can mitigate your losses in trading.

It's because we have stop-loss in which it will prevent your from losing all your capital as compare to gambling. You can only compare trading with sports betting as it involves analysis as what you have said.

But for luck base game it's very different. So for me, it's very different in terms of mindset, maybe trading is way better for balance and again, you can't fall for the addiction of trading. Maybe you can trade in just a couple of hours in a week and that's it.

[FFrankie]

Trading vs gambling. Your bankroll increases and decreases differently with each one. In trading, general you trade one asset for another and for a short period of time they are equal to the same amount. In gambling your bankroll would decrease in steps if you kept on losing where trading it would be a slope.

[KiaKia]

4. Luck is required in both

This is the main difference between trading and gambling. Gambling requires luck but trading is not just about luck if you know what you are doing.

Trading is very risky like gambling, many people are trading like they are gambling is the reason they are losing money more than they are winning money while trading.

Luck is not completely out of trading my friend, it is a form of prediction too, but you need more luck in gambling than trading because of technical analysis that's stronger on trading side.

Strategy works better with trading than gambling,  if you know how to read charts and also use some good trading tools you will be a better trader, such thing doesn't exists in gambling.

This is why I go the lowest risks on gambling every time, there is always this high possibility that things will go wrongly in gambling and that's not a lie, things have turned out this way too many times.

[Moreno233]

4. Luck is required in both

This is the main difference between trading and gambling. Gambling requires luck but trading is not just about luck if you know what you are doing.

Trading is very risky like gambling, many people are trading like they are gambling is the reason they are losing money more than they are winning money while trading.

You are right because trading has no business with luck. Relying on luck in trading will lead to disaster as has been experienced by some people who think they can just enter into trading and becoming so rich with one jumbo lot size trade. Trading is based on skill while gambling has a mixture of risk and luck. Trading requires mastery of the skill needed to trade the volatile market and proper understanding application of risk management to remain in the game for long.