I Want to know that what we are doing in any kind of market, what our action called gambling or trading? what ever else explain it how could be it called and why?
In the stock market, trading is the correct term to be used.People often mistake when one gets results quickly (profit / loss) and say gambling.The actual fact is that there should be a buyer and a seller to constitute a deal.For example, a land sale where owner sells to another person and gets money.If land is centrally located valuation will be more or else less.
Quoting Nithin's answer from here.
In trading unlike other careers the results are instant - good or bad, unlike in other walks of life where it is delayed. I can gamble with anything in my life, from my education to work to my relationships, but the results of it are delayed. In trading since the results are instant, people call it gambling.
What you need to understand though is that like everything you do in life, you need special skills to be on the top, the only difference is that in trading only the people who are on the top can survive while the others perish. These special skills, some of it what you are born with, and most of it is what you learn over time based on your hardwork and experience.
That’s a choice! People can choose to Gamble the Stock Markets or to Trade them! Nevertheless, what holds for your future is the present course of your mindset that will be reflected upon. Trust me! Warren Buffett, George Soros, how do they do it? Think!
Gambling: The sure way of getting nothing for something.
See Gambling is when you do something, in which you don't know the outcome, or rather you do it blindly. Trading is not like that, you for sure know what you are doing, what is your target, what is your stop loss etc.
So it is just a viewpoint. What matters is how you can handle it, the viewpoint I mean.
Cash segment in stock market is trading because you are actually buying shares of company and selling it. But futures and options are gambling because there is no actual relationship with underlying stock or item except that the price of underlying is used to settle it on day of expiry.
The stock market, Cash segment in stock market is trading because you are actually buying shares of company and selling it The actual fact is that there should be a buyer and a seller to constitute a deal.In trading since the results are instant, people call it gambling.
well said sudesh,according to me gambling is 50:50 outcome ,but trading is atleast 51:49 means we are sure with what we are doing.