Is this a gamble or a trade ? The clear test that works

[bangjoe]

To prevent crypto trading from feeling like gambling, you need a trading system with clear, formalized rules that leaves absolutely no room for second-guessing.

The point is not about a mechanism that does not make us doubt, it is clear that what makes gambling is not doubt or not, but how you trade, like you hope for luck after you take a position, and that is the type of behavior of gamblers in general, using leverage not according to financial capabilities, or even you do not measure where you can accept losses, and don't forget not only that, when you have greed after getting one trade and you always want more than what you have got it is similar to people who are addicted to gambling.

In some speculations there are those who say futures trading has a stronger gambling aspect even though you can manage it.

[Jegileman]

Trading is different from gambling and it doesn’t matter how you try to interpret them, you’ll always see something distinct about them that makes them not fit to be in the same category. The only similarity they share and I know is that they’re both risky. While one can help you get over the risk to a barest minimum using your skills, one cannot make you do that as a result of it being a game of luck and not skills. Trading is a very essential skill that requires knowledge that when you get over it, the rewards are attractive and more rewarding than one can imagine. Trading is skills based while gambling remains a luck based game.

[Plutomanian]

I never support gambling because gambling only brings people losses and never profits. Gambling is like a terrible disease, once caught, the addiction to gambling does not stop until it is over. A wise person never fights fate, a wise person is one who tries to make fate better with his knowledge.

Gambling should never be encourage especially in a trade. I've seen what gamble does to people when they're trading, messing with our mindsets and making a trader look confuse in the market and once a trader is confuse, he's been persuaded and panic to make wrong decisions because thoughts about losses will come in, while in his mind, he's doing his best to escape these losses but they will just keep coming.

Trading is not for everyone, take a leap of faith and count on the basic initiatives that best suits your ambition because it's not mandatory that everyone should trade, I've seen and come across people that are doing exceptionally well and they never for a day trade, connect with people with values if you want to go far in live.

[Peanutswar]

If you are talking about playing gambling like a casino, is you felt the loss why, because you dont have an option at all you are just rely based on your luck only and you can't do anything about it just wait the results. But in trading is you have an option the traders have the rights to make a move and create a decision if they wanted to pull out their current position or not. Now if you wanted to still be playing gambling better choose other game you have a lesser risk or higher chance to win and in trading is you need to identify what kind of set up you will use and strategy so you both not ended up losing more money.

[fuguebtc]

Trading is different from gambling and it doesn’t matter how you try to interpret them, you’ll always see something distinct about them that makes them not fit to be in the same category. The only similarity they share and I know is that they’re both risky. While one can help you get over the risk to a barest minimum using your skills, one cannot make you do that as a result of it being a game of luck and not skills. Trading is a very essential skill that requires knowledge that when you get over it, the rewards are attractive and more rewarding than one can imagine. Trading is skills based while gambling remains a luck based game.

It can be stated that gambling and trading are two different thing.

Trading is a part of the financial market, and we can use technical analysis and fundamental analysis to make informed decision. However, the line between gambling and trading is very thin, and we can easily become gamblers without even realizing it


Furthermore, do not think that being a trader give you a pass to lose beyond your limit. Know when to stop and do not let thing get out of control. Otherwise, the result you get will be no different than gambling.

[alastantiger]

(I have not gambled in markets long time because it is relatively easy to be fully aware for avoiding it some minutes or hours I am behind my trading desk. I have gambled occasionally in everyday situations (for example in traffic) when I lose my awareness - is is difficult to be 24/7 fully aware).

Just because you think you learnt something from the trade that you made, that does not make the trade automatically not a gamble, there are some gambles that you make that you can also learn from as it teaches not to make such bet again in the future. You can enter a market in any of the cryptocurrencies and make a big bet of the chances of the coin increasing or reducing but then it does not favour you based on the decision you took and why this is pure gambling since you did not analyze the market in any way, you can also learn from that gamble that you made.

The only test that I use to distinguish between trading and gambling is when before I open a trading order I must have previously analyzed the market that is when I know that what I am doing is trading but if I just follow my feeling in any way and place a bet then it might not work out the way I wanted.

[uneng]

In a market where speculation plays the biggest role on short run, and the fluctuations are unpredictable, trading becomes identical to gambling, since analysis and technical tools will be useless identifying what is going to happen on the following hours or days.

Technical analysis is only useful in crypto market when you take longer periods of time into consideration, as it's possible to understand how the cycles work, so you can prepare yourself for the next bullish or bearish season.

However, it takes time, so many traders reject the idea of focusing on long term, because they are eager for quick overnight gains.

[nara1892]

I agree with your main point, OP, that evaluating and learning from mistakes is the best approach to progress or development, which will indirectly make it easier for you to achieve success. However, on the other hand, this doesn't mean you have to be happy because pleasure can trigger the desire to repeat it. You can trade carelessly with the intention that when you lose, you will learn and evaluate it. But what if you don't find the problem? Obviously, it will be an unnecessary loss. The human brain has certain limits, so it's better to act normally, but still take it as a valuable lesson and also ensure that the amount of loss is still within your limits.

[KingsDen]

I do not fully understand Op, whether he wants to be sure that he is not over trading which he called gambling or he meant gambling in the real sense.
He said about the test that works and how he feels bad when he losses money through gambling but does not feel bad if he loses money by trading.

Is op trying to differentiate between gambling and trading?
What baffled me most is gambling in a traffic. How did you achieve that. I thought that for one to win in gambling, they need a calm brain and maybe they have to be relaxed to calculate well. The possibility of losses should be high when you are uncomfortable in the streets. I am not very sure, but I am just saying.

[Joy- maker]

I have a very clear test that works 100% (at least for me) for making sure am I gambling or trading at the moment.

If I gamble and I lose, I will feel terrible. Because I have lost valuable resources for nothing.
If I trade/invest and I lose, I will feel good. Because I know and feel that the lost trade that I have made using all my resources in the best possible way I was able - that this lost trade is a valuable asset from what I and others can learn much. A lost trade is as interesting and useful as a negative result in science (hypothesis that is proved to be false).

I was howling with laughter while i was reading through thread, because all what you just said does not make sense to me. Because i don't understand how someone will feel terrible when they lose to gambling and then feel good when they lose to trading.

Maybe you are new to gambling and to trading, and as time goes on you will come to understand that you need to feel terrible when you lose to both gambling and trading. losing is losing, nobody loses and feel good people always feel bad and terrible whenever they lose be it to gambling or to trading, frankly speaking i am hearing this for the first time.

[colinistheman]

I have a very clear test that works 100% (at least for me) for making sure am I gambling or trading at the moment.

If I gamble and I lose, I will feel terrible. Because I have lost valuable resources for nothing.
If I trade/invest and I lose, I will feel good. Because I know and feel that the lost trade that I have made using all my resources in the best possible way I was able - that this lost trade is a valuable asset from what I and others can learn much. A lost trade is as interesting and useful as a negative result in science (hypothesis that is proved to be false).

I was howling with laughter while i was reading through thread, because all what you just said does not make sense to me. Because i don't understand how someone will feel terrible when they lose to gambling and then feel good when they lose to trading.

Maybe you are new to gambling and to trading, and as time goes on you will come to understand that you need to feel terrible when you lose to both gambling and trading. losing is losing, nobody loses and feel good people always feel bad and terrible whenever they lose be it to gambling or to trading, frankly speaking i am hearing this for the first time.

Those who say they do not feel sad, disappointed, or even happy when they lose money are just deceiving themselves. Those who believe that losses are just a minor part of trading and keep allowing themselves to lose are simply justifying gambling and refusing  to admit their own poor decision.

You are right, losses are losses and we should see it for what it is. Any losses, whether large or small, should be reviewed and lessons learned, rather than accepted as inevitable. The purpose of trading is to make money, not to waste it.

[Cointxz]

Those who say they do not feel sad, disappointed, or even happy when they lose money are just deceiving themselves. Those who believe that losses are just a minor part of trading and keep allowing themselves to lose are simply justifying gambling and refusing  to admit their own poor decision.

You are right, losses are losses and we should see it for what it is. Any losses, whether large or small, should be reviewed and lessons learned, rather than accepted as inevitable. The purpose of trading is to make money, not to waste it.

What I think the point of the OP on this thread is money well spent if lose in trading because preferred technical analysis over pure luck when it comes to deciding factor on the outcome of his money put at risk.

There’s no way someone will be happy when he lose money regardless the method that he use. He probably just put a wrong wording to his statement just to create a comparison between gambling and trading.

Gambling and trading have different purpose. It’s nonsense to create comparison a preference on losing money.

[Royal Cap]

If I gamble and I lose, I will feel terrible. Because I have lost valuable resources for nothing.
If I trade/invest and I lose, I will feel good. Because I know and feel that the lost trade that I have made using all my resources in the best possible way I was able - that this lost trade is a valuable asset from what I and others can learn much. A lost trade is as interesting and useful as a negative result in science (hypothesis that is proved to be false).

However I think that just feeling after a loss is not always enough to differentiate between trading and gambling. Many gamblers convince themselves that they have gained experience after a loss, while many traders also break down emotionally after a big loss.  So feeling alone may not be a good indicator. For me  the real difference starts before you take a trade. If there is analysis and a clear plan behind the decision, then it is closer to trading. And if you rely only on luck or excitement, then it is more like gambling.

[Mpamaegbu]

If I gamble and I lose, I will feel terrible. Because I have lost valuable resources for nothing.
If I trade/invest and I lose, I will feel good.

That's actually reversed for me. I feel disappointed with myself when I lose a trade but indifferent whenever I lose bets. This is because I've come to associate gambling with luck and trading with skills. What that means for me whenever I lose is that I've yet to master whatever trading skill and strategy I'm on. However, I still console myself with the fact that there's no perfect strategy that catches all trades. There's bound to be losers no matter how good a strategy or method is. Profitability in trading isn't the absence of losses.