gambling means like lottery horse racing Hello,
First of all, I strongly disagree with your point of view!!
Trading in financial market is gambling??? I'm Sorry!!! - If it is so, wouldn't the big commercial and central banks regularly visit the glittering lights in Las Vegas??? or say the race course???
My friend, I suggest you to change your view - there is difference. Would you call a regular business such as retail shop, transport, and many others as gambling? No sir, these are business which keeps us running - similarly, trading in financial market IS A BUSINESS which backup the economical status of a country. For more information, go thru this short article:
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Is Share Trading Gambling?
Money Management | My Trading | Trading Technique | Q & A
Submitted by Marco on Wed, 03/05/2006 - 10:48am.
Marco tries to Answer Whether or Not Share Trading is Glorified Gambling or a True Profession?
Is share trading a gambling activity? The Australian Pocket Oxford Dictionary defines gambling as to 'play games of chance for money'. It also defines gambling as to 'risk much in the hope of great gain'. Now, old George doesn't think share trading is gambling. In that post, he says, "You used technical indicators to tell you that the balance of probability lies in your court and if it doesn't - well you must quickly initiate risk management and cut losses." A statement that contradicts our dictionary definition. So some people classify share trading as "glorified gambling." Well, if you stick to the genuine definition of gambling, share trading IS gambling. Personally, I was in denial with this for a long time. Every time someone brought up share trading and gambling I would refuse to believe it was. But surely there's more to this argument...?
Trading shares is all about the balance of probabilities - you risk your capital only when the evidence weighs up on your side. Hang on... am I giving up too soon on the argument? Let's go back to our dictionary... Gambling = 'Play games of chance for money'. Ok. Share trading is a game of chance. Price has only two directions to move - to either go up or down. And we are in it for the money, as we established earlier. But the question remains is that, is it a game? Trading for a living is not a game. I have to treat it as a professional occupation, a professional business complete with a business plan to succeed. So, maybe on this one point I have disproved that gambling (!=) is not equal to share trading.
Ok, what about the second definition? To 'risk much in the hope of great gain'. Ok, we are here for great gain. Tick. But hang on - 'To risk much'? Share trading is about risk management. We don't simply "risk much" to succeed. Before a trader enters into a trade they must calculate the risk that they are taking. They must set their stops. Some even implement that 2 per cent rule. Share traders are managers in risk, so therefore they aren't gamblers in that respect too.
In conclusion, I think I have conclusively argued that share trading is NOT gambling. Although it does tread a fine line at that. The only few pillars that separate the gamblers from the true share traders in the market is having a business plan - the plan of attack that tells the trader when to enter and when to exit and secondly their risk management scheme. Good Luck.
飦?Marco
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Courtest: Marco
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My friend, if you have ever traded stocks or tried to do so, I would recommend you few things to learn: do some research on the internet and learn what is:
1. technical analysis,
2. trading system
3. physicology of trading
4. money management
5. Your own personality - trading style which suits you.
6. Risk management
<The above points are not in order of their importance>
Take time to educate yourself - say 10/12 months on the above points, read some good books and then start trading with a small account (Do NOT try to be rich overnight) - gain experience - profit in terms of points you collect from the market (NOT money: risk not more than $0.5 per point move) - gain experience -
Ultimately, when you see your trade RECORDS going UP in scoring points from market, increase size of your trading account (such that you risk not more than $1 per point move) - keep repeating the above steps - One fine morning you will find yourself rich and richer in experience -
Then you will REALLY understand what I have written in the above few lines.
Till then,
- good bye from a friend. Are you talking about lottery? |
