Are gambling and trading the same ?

Question

Dustin · Accepted Answer

People often liken trade to gambling, but the comparison is not quite right. The two concepts, however, share a few common points. When you understand what makes trading different from gambling, you'll get a much better idea of what it really means to be an investor. People who are successful in the long run with trade are not "fortunate". . No one can be consistently lucky, and no one can say that they are professional craps or roulette players. Successful traders follow a proven strategy and are consistent. That's why they can see steady results and net earnings more than losses. There is no doubt that gambling is much more accessible than trading, and, out of all people who get involved with investing, only a tiny minority truly understand how the economy works. Trading will require you to learn about markets, technical indicators, chart analysis, and how to read financial statements. All you need to play casino games is to be of legal age and have access to a casino. You don’t even need to leave the house today, with the advent of online casinos.One characteristic that both gambling and trading share in common is risk management. Experienced gamblers are often very good at managing risk. They might look up a certain player’s history so they can get a certain advantage, for instance, or look up a racing horse’s pedigree and performance on different types of tracks before choosing who’s the best bet.

Ryan · Answer

That is untrue. Financial market investors are merely speculators who are successful at their trades. Gambling and investing/trading share some similarities, but otherwise, they are quite different activities.Gambling and trade can be distinguished by the variation in risk and return. In the stock market, yield may outweigh the risk, however, in the gambling industry, danger outweighs yield. In contrast to gambling, where you can only be a buyer, the stock markets urge us to be both buyers and sellers. Because they invest money in stocks without understanding or analytical skills, the aforementioned individuals primarily lose money on the stock markets. If you approach stock trading as gambling, then it is unquestionably gambling.In the stock market, you have an advantage known as a statistical advantage; the secret to success is completing constant study; which allows you to make more educated decisions. In contrast, gambling places a greater emphasis on luck. Trading will resemble gambling if you simply choose random stocks and execute trades.An item becomes a business when you invest in it to make money. People only lose money in businesses or trading because they fail to understand the risk-to-reward ratio prior to making any decisions. The odds are seldom in your favor when you gamble because the dealers (bookmakers and casinos) are typically the ones who make money.

David · Answer

This is a simple misconception.People unfamiliar with trading do not understand trends, cycles, trader psychology, price action, money management, etc. Thus, they draw conclusions based on what they misguidedly believe is a close comparison - gambling.It is easy to understand why they draw this conclusion after examining the many stories and myths about people who have lost and won everything in a trade. Trading is hard, as I have said a million times. Many people don't want to work at it and claim that the stock market is just gambling. There is a mistake.People would change their minds if they understood that price charts are graphical representations of investor sentiment. This is hardly a game of chance.It is true that trading is uncertain, but no more so than other forms of investing. What makes trading different from property speculation? No, it isn't.Trading without knowledge is definitely gambling. It would be a good idea for you to go to the casino if that describes you. Even if you don't save time, it would be helpful.

Are gambling and trading the same ?

6 Answer

6 Answer

Are gambling and trading the same ?

6 Answer

6 Answer

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