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Some have argued before Congress that while Poker and Dice may both be gambling as defined by the US Government, Poker is a game of skill whereas Rolling Dice is a game of chance, and therefore online poker should not be treated the same as other forms of gambling.
If that be true then one could make the argument that trading is based on skill not chance. Whereby you don't have lucky and unlucky traders, you have traders of different skill levels.
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
To me, gambling can only take place if opportunities always show a negative expectancy. That's not the case in the markets. However, you can look at trading as gambling until you start making a steady income from it. Then its a respectable job i suppose.
The betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome of a game, a contest, or an uncertain event whose result may be determined by chance or accident or have an unexpected result by reason of the bettor’s miscalculation.
Judged against this definition, trading is a form of an educated gamble. The language of the trader is not very much different from the language of a gambler. The Kelly criterion for optimizing the betting size applies to both traditional gambles and trades. I am afraid that the answer to the question by @Big Mike is simply Yes.
Is every investor a gambler? And if no, where exactly is the borderline between investors and gamblers?
In my opinion investing is gambling as well, as it matches the definition above.
What about life? Is life a game? Does the definition well describe your life? Well, it does! Homer, Shakespeare and the creationists may believe that our lives are determined by destiny, and whatever you do is not gambling but following the path that has been reserved for you. I am a bit skeptical, as I think that evolution uses the gamble to explore opportunities.
Gambling takes on many forms everywhere in life but sometimes we dont consider the risk or consequences . When someone buys a lottery ticket or only slows down at a stop light or leaves their car running while they run into the store they are gambling . Are insurance companies gambling when they sell you a policy - yes . Are casinos gambling when they take the other side of your bet - yes . Both know their edge and play it out religiously and stay on top of the risks . A trader religiously and unflinchingly playing a game they know they own is a businessperson and a gambler , a good gambler .
I have to say I Agree 100%... trading is no different than gambling, and the education or skills part is what determines how successful one will be at the game, depending on what one plays.. and just like with real gambling (chance or skill games), trading can be addictive.. but just like with gambling(specially on the skill based games) you can make a business out of it..
I dont know about APPL/MSFT/IBM/GM... to me they are hedgers for currency or basic materials they need in their business, not really traders though they will profit by hedging the right way... but the major banks with their own prop desks and funds... they all trade, they all hedge and they are the most sophisticated gamblers there are in the world... but they treat it as a business, and have resources, and talent with discipline which is what makes them different from the retail investor ...
