Trading is gambling or not : An interesting discussion

gambling: one acts 1st, then seeks information/learning
trading: 1st seek info/learn, then act
other things between investing, trading, banking, treasury, govt-bonds are some ratio of both.
Like an 80:20 becomes 20:80 if the reference/point of view! is changed!
In the end everything works out… its not local optimization(individual) but a global one(Universal)!

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If trading was gambling all of us would be in a casino instead of a forum with heated discussions on trading. If you trade trusting your luck with no knowledge and skills, then it will be just a gambling game for you. But those who trust their knowledge and skills would never see trading as a luck based game.

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Gambling involves chance or pure luck. It does not involve any skills, education, or advanced tools. Trading involves skills, education, expertise, and of course, advanced tools. Both are totally different things and can’t be compared.

As long as traders focus on risk management, they will be able to save their accounts, make new strategies and try to pull in more profit. It isn’t gambling at all, this market is not a place to make bets and hope to win. You either put in hard work, follow a plan and get rewarded or you fail.

According to my experience i have always failed in trading depending on LUCK…

strategy is v v impt
sometimes we fail sometimes we pass but with LUCK 90% we will fail

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I believe the stock market belongs to professional traders with knowledge and skills. Beginners who commit to learning can become profitable over time. But those who engage in mindless speculation will never survive in the long run. Trading stocks is a risky venture and to cope up with the risk you need some market knowledge and expertise. Those who don’t respect the market will be taken out of it. A real trader would always be taking calculated risks and planning profitable strategies. The stock market has no connection with gambling unless you treat trading like a betting game.

Trading is not gambling for someone who always makes decisions after market analysis and always follows a well-defined strategy. They know the risk they are taking and always look for ways to limit the risk. But someone who doesn’t have any knowledge or skill to begin with may feel it’s like gambling as they have no clue what should be done and just make decisions based on impulses.

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Hello @ShrutiNandi, you’ve brought up a thought-provoking topic. Trading and gambling can sometimes seem similar, but the key difference lies in strategy and knowledge. Those who approach trading with careful analysis and a well-defined strategy are less likely to view it as gambling because they understand the risks and work to mitigate them.
Also, if you’re interested in a form of entertainment that’s not dependent on strategy or risk, you might consider trying out casino slot games. They provide a different kind of gaming experience and can be a fun way to relax without the pressures of trading or gambling.

What if when zerodha is unfair with you.

If you only have a small amount of money, trading can feel like gambling.

Rich people are unconcerned about paying more for goods, whereas the less elite bargain.

Terms are dictated by psychology, and by that definition, most retail traders are borderline gamblers.

The only exception is for traders who had a string of early wins and are now trading with earned profits and their initial deposit withdrawn to the bank.

I think trading feels a lot like gambling if you’re just putting money in without a real plan. But if you’ve got a strategy and are careful about how much you risk, it can be more like a calculated decision.

If you’re curious about different ways to bet and want to try something new, you should check out themulligans.org. They have a bunch of betting options that could be a fun way to see how other games work.

When we take a trade, we have only two outcomes Profit & Loss (Incl Brkg).
Technically And Theoretically Markets Move Up or Down having two outcomes Which Equates to 50/50 probability.

Also

There are Patterns (s&p, indicators, chart patterns etc…) in the market created by Algo’s or Investors/Traders Behavior. These Patterns often occurs in the market and Traders who’s observing them from veeeery long time have an in and out idea of it and create a strategy which has slightly more probability of 50/50.

Generally, they don’t Disclose Their Strategy because no one will it’s their Hard-earned Technique who spent lots of time.

Why not Showing the PnL then?
it’s up to them. we can’t say anything.

They trade by their strategy and once a position is created, remember we have two outcomes profit or Loss and the product Move up or down having 50/50 probability.

if your strategy has 65% chance of winning, we can’t say this position will fall into 65% win rate or 35% loss rate. no one knows. All we can do is just fallow the strategy and modify them according to change in markets dynamics.

But But But

When it comes to options it’s different.

An option Seller has 66.66% winning probability. How? whether the product stays at the same price or moves in our Favour we can still win. there’re two outcomes to win a trade here out of three.

we know it comes with a risk.
sold an option? put SL.
stop loss jump? trade 2nd weak expiry in index or hedge.

So, who’s Right here?
Nor you, him and me.

We are half knowledged, Better Fill other half with experiance.

people Always Think In their own perspective.
Better step out and think why it is like that?

Things Can Be Sorted Out in Peace with Ease. :blush:

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Gambling is actually when you do something without having know-how of it. Do anything, any business without having skills, you are doing gambling.

Situations can never be 100% under your control, but what you can do is you can shape it to some level as per your will by having know-how of it. This is all we do with everything all our life.
Same applies to trading, one indivisual comes with greed and no skills, makes losses. Another indivisual also comes with greed but having proper know-how of it, makes profit, becomes successful. You just can’t simply categorize anything into one side or another side, there is gray area in between.