Is Trading Just Gambling in a Suit?

[Fivestar4everMVP]

The problem starts when people treat trading like gambling. They overleverage ignore stop losses and make emotional decisions. At that point trading stops being investing and becomes gambling with better graphics.

So in my opinion the biggest difference is control. In trading u can control your risk. In gambling most of the time u are only controlling how fast you lose.

what do u all think?

I agree that it's very easy for trading to shift from being trading to gambling, this discussion is not new to this forum and to this board actually, this is something we have discussed over and again and u remember that I was one of those who once created a thread on this topic as well.
It is very easy for futures trading to shift from being a trade to gambling simply by the use of leverage and by ignoring important safety tools like the stop loss and take profit tools.

So Knowledge is one important key that matters a lot, because between two persons trading, the only thing that could separate one who is gambling and one who is actually trading is their level of knowledge in what they are doing, someone who has no idea of how to trade but enters the market to trade is only there to gamble, and like every gambler, he or she will be needing luck to come out in profit, else, it's nothing but loses and loses.

[terrific]

So in my opinion the biggest difference is control. In trading u can control your risk. In gambling most of the time u are only controlling how fast you lose.

what do u all think?

It's the same with gambling.
You can control your risk as well when you gamble.
While for the traders, there's also no difference on how they can control themselves to lose fast.
See those leverage traders? they know that they're going to lose but even then, they continue to trade.
So the risk assessment is almost the same in it but the executions of doing it are different.

[odunybiz]

I often contribute to topics like this because some people might not want to open a bunch of threads, so they create a new thread even though the question is the same, just with a different chronology. LOL

Basically, trading and gambling are different; the definition alone differentiates them. Trading, where you buy and sell, is that simple. But sometimes people confuse this because there's a price chart that serves as a platform for gambling, and we simply choose whether to trade up or down. What we usually call binary options is a form of gambling that relies on the price movement of a commodity/assets.

This basically differentiate between spot and future trading. But from your explanation, can we call future trading a gambling while separating spot trading as real trading? Although, like you said binary option is purely a gambling platform that works on the price movement of a coin/currency.

[Kelvinid]

Both involved common risking of capital with an unpredictable outcome just to secure profits. However, while gambling is chance and luck-based, trading is skill and strategic-based, the reason why there is higher chances for traders to generate profits compared to gamblers.

Trading only becomes gambling when it lacks strategy plan, when one resorts into overtrading, and when one starts to ignore risk management.

In general, while they share some common risks, but gambling and trading are still different from each other. Trading allows positive expected return, but with gambling, no matter how good a gambler is, but because of house edge, its expected to have negative returns in the end.

[Cantsay]

So few days ago i went to my father’s office with him. While i was there one of his assistant asked me about trading and i gave some answers. Then one of his colleague in the office said “Trading is basically gambling people just call it something else these days.” That made me think. I gave them answer at the time but later i did some research on what really makes trading different from gambling.


what do u all think?

I kinda see the angle from where that assistant is coming from, and I honestly don't think that he's completely wrong. In the past, before you started trading or left your demo account to start trading with real funds, you'd have to undergo some real training. Still, nowadays, people who don't know shit about trading are already trading because one self-proclaimed trading guru said he would take them to a certain amount if they join his Telegram channel. That type of trading is no different from gambling since you're depending on luck to get a successful trade.

But for a real trader, the difference between gambling and trading is quite obvious, especially when you're dealing with games that are based solely on luck.

[Bitcoin_Arena]

It depends on whether you are looking at gambling from a broader aspect. or not. One would argue that everything we do in life is a gamble. From that business or company you set up to those investments you make. It could either turn out to be profitable or a complete failure leading to losses. So let no one make you feel bad about gambling. The only problem is when there is addiction that can affect one's mental health, just like a mentally draining business that is giving you massive losses.

[Finestream]

Trading can possibly result like gambling if you are trading blindly. You trade while chasing some luck because you still believe that if you are lucky, you will be profitable with trading. Although there are really traders that got lucky and gained impressive profits, but I don't think luck works alone. Its the knowledge, skills and effective strategies of a trader that made him generate life-changing profits, being lucky is just a bonus.

If you don't clearly understand how trading works, most probably you are trading like a gambler.

[emmybd]

Trading and gambling are two different things. You can't say that trading is gambling. As far as futures trading is concerned, there is some similarity. But spot trading are completely different things. It also varies from individual to individual in how he looks at things. If he is trading with proper planning and managing risks well, then it is nowhere near gambling. If he is not taking all these things into consideration and trading with high leverage, such as 75x or 100x, then he is definitely treating it as gambling. If luck goes in his favour, then the profit is very high, and if it doesn't go in his favour, then he is going to lose all, just like gambling.

[Bityar]

Hello Reader . I hope u are doing well.

So few days ago i went to my father’s office with him. While i was there one of his assistant asked me about trading and i gave some answers. Then one of his colleague in the office said “Trading is basically gambling people just call it something else these days.” That made me think. I gave them answer at the time but later i did some research on what really makes trading different from gambling.

In my opinion in gambling most of the time the result depends mainly on luck. U may win today and lose tomorrow but in the long run the house usually has the advantage. Many people keep playing because of emotions excitement and stress relief or the hope of a quick recovery after losses.

While trading on the other hand should be based on analysis and patience and also risk management. A good trader does not enter every opportunity. He wait plan and accept losses as part of the process. The goal is not fast money but consistency over time.

The problem starts when people treat trading like gambling. They overleverage ignore stop losses and make emotional decisions. At that point trading stops being investing and becomes gambling with better graphics.

So in my opinion the biggest difference is control. In trading u can control your risk. In gambling most of the time u are only controlling how fast you lose.

what do u all think?

Take care of urself , love urself and stay blessed.

Hello brother I have reads many comments of your topic but in my opinion gambling is about luck it s just a game of chance But trading is about having a plan trading is a skill you learn when a trader research and manages their risk they are acting like a business person the problem is that many people get greedy and stop following their rules like you said once you start making emotional decisions its not investing anymore its just gambling.
I think the key difference is definitely control a smart trader knows when to walk away or stop a loss while a gambler just hopes for a lucky break

[Kelward]

So in my opinion the biggest difference is control. In trading u can control your risk. In gambling most of the time u are only controlling how fast you lose.

what do u all think?

I don't think that the difference between gambling and trading is control, you need self control as a gambler so you will not become addicted to it you also need self control in trading so you can control your risks. You need to gamble responsibly likewise you need to also trade responsibly and it is self control that can make you responsible in both, without it you will lose your bankroll. Aside from most casino games that are basically 100% luck based sports bet requires analysis likewise trading but trading analysis is far deeper than gambling analysis and that is the major difference for me. You can casually analyze sports bet but in trading you need to understand technical analysis and also fundamental analysis with the right mindset so trading requires serious learning but you don't need to learn gambling analysis.

[Julien_Olynpic]

In trading, as in gambling, 99% of participants lose money over the long term. In casinos, 99.99% likely lose, unless they win by chance and withdraw their winnings in time to stop playing. As for analysis, it's also possible in sports betting, not just trading.
But in sports betting, it's more difficult to come up with something new. Generally, trading concepts such as trends or corrections are absent from sports betting. The results of individual matches can often be independent of the results of other matches, and this presents a major challenge for analysts.

[xenomorfo]

I don't think that the difference between gambling and trading is control, you need self control as a gambler so you will not become addicted to it you also need self control in trading so you can control your risks. You need to gamble responsibly likewise you need to also trade responsibly and it is self control that can make you responsible in both, without it you will lose your bankroll. Aside from most casino games that are basically 100% luck based sports bet requires analysis likewise trading but trading analysis is far deeper than gambling analysis and that is the major difference for me. You can casually analyze sports bet but in trading you need to understand technical analysis and also fundamental analysis with the right mindset so trading requires serious learning but you don't need to learn gambling analysis.

In my opinion and i speak as an ignorant person who doesn't make bets and above all doesn't trade.
They are really very similar, given that no one can be sure that team A will win over team B just as no one can be sure that company C will have higher prices.
Please correct me if I'm wrong

[iv4n]

what do u all think?

I think that trading is just a form of gambling in a suit, but I also think that life itself is one big gamble. It's because uncertainty is in everything, and results depend on so many things... things can happen or not. I had too many discussions about it, I know I am stretching it a bit, but it's one of my philosophies...

In reality, trading is a skill-based activity. With the right approach, you will have a higher chance of long-term success... if you are a good analyst and have discipline & patience, maybe you can do something more. So the right question is, do you possess all those things?

[Botnake]

Those who are trading with uncertainty do not actually perform real trading, they are gambling instead. That's why if you look at the profitability rate of traders, there's more traders who are losing than making successful trades, that's because majority of traders nowadays are performing like gamblers, which means they don't trade for profits but they trade to incur losses.

The psychology behind this is that trading can also trigger the same reward and excitement when one trades, thus just like gambling, it releases dopamine in every gain that slowly leads to addiction. Those small wins encourage them to trade more, same with compulsive gamblers, and the more they trade and increase the risk, the higher the losses they will encounter. This happens if you are trading with a gambler's point of view.

[Fiatless]

In trading, as in gambling, 99% of participants lose money over the long term. In casinos, 99.99% likely lose, unless they win by chance and withdraw their winnings in time to stop playing. As for analysis, it's also possible in sports betting, not just trading.
But in sports betting, it's more difficult to come up with something new. Generally, trading concepts such as trends or corrections are absent from sports betting. The results of individual matches can often be independent of the results of other matches, and this presents a major challenge for analysts.

I think your assumption of trading losses it high. According to Binance, close to 90% to 95% fail in crypto trading. I know some people who are successful traders, and they are making a living from it.

So yeah, I think trading is not as risky as gambling if proper knowledge is applied. Winning and withdrawing have been my best strategies for reducing my losses on gambling. Those who keep gambling with their win would likely end up losing all.

[Questat]

There are already several similar topics comparing trading with gambling. For a real and experienced trader, the conclusion that gambling is the same as trading will sound very funny. Can anyone build strategies where the probability of success depends on luck? Such a comparison can be made by a player who does not understand a damn thing about trading, but not vice versa.

Absolutely. Its clear that seeing trading like gambling is a stupid comparison, that only proves that he's not actually into trading, he just hears it from those who trade like they are gambling.

I would possibly agree if he would say that in order to be in profits, he should gamble like a professional trader, and shift his mindset from pure luck into skill and strategic based, and adapt proper risk management and discipline. But seeing trading like how gambling is done, you are clearly not trading for profits but you are trading and expect luck to work on it, unfortunately luck does not create assurance for trading success.

[ZeroVinsonN]

If there is a similarity between trading and gambling that similarity exists between trading and sports gambling, they both require a certain level of analysis, skills and patience, profits are guaranteed and you can still lose it you are not careful enough of lucky enough, people who say luck has no place in trading are very wrong, luck is very much a part of trading, your analytical skills are essential but if you are not lucky you will still not get any profit from trading.

[bitbollo]

Basically yes. If you're not making professional or you're not earning more than market you're just gambling.
In my opinion mostly of people are just gambling their money.
Have you ever had a look on groups about personal finance? they are clearly following the same strategies with same brokers trying to outsmart a market.
Or worst groups with high and speculative "positions" on certain company that due the size and efforts are clearly... betting on an event.

[Big Dirams]

If there is a similarity between trading and gambling that similarity exists between trading and sports gambling, they both require a certain level of analysis, skills and patience, profits are guaranteed and you can still lose it you are not careful enough of lucky enough, people who say luck has no place in trading are very wrong, luck is very much a part of trading, your analytical skills are essential but if you are not lucky you will still not get any profit from trading.

Trading and gambling has similarity sure but trading doesn’t work much on luck to be honest, in trading luck can be a little percentage of success but the moment a trader acquire the knowledge needed, the experience needed and proper strategies needed then such trader doesn’t need any luck at all to make profitable trades. The higher our knowledge and understanding the chances of us hitting high level of success and we won’t have to rely on luck at all.
But in gambling even with our little knowledge luck plays a big role to our success.  Luck is the strong pillar in gambling.  

[gracreavix]

I don’t really have much to say on this, because there are a lot of arguments out there already. some people say trading is gambling, others say it’s not.
But for me, I’ve seen and heard of people making money from trading consistently, and I’ve also heard same for gambling. Even though gambling seems to be pure luck. So honestly, I can’t really say for sure.