Post
Topic
Board Gambling discussion
Re: Gambling is like day trading ?
by
DevilSlayer
on 18/04/2020, 08:46:30 UTC
I do not think that gambling and day trading are the same, sure they both involve risk which made it look like that they have a lot of similarities, but if you take a step back and look at the bigger picture gambling doesn't have a money back guarantee, trading on the other hand ensures that you can still get the money back though you have a loss. Another difference is the timeframe of return of investment, in gambling, once the dice stops or the cards are set is also the time when you will get the return or not, unlike day trading, if you bought a stock and the price continues to dump you could either wait for it to get back on track and reap a profit. For me that is enough difference to make me identify one from the other.
Indeed, it has similarities but the way to gain is totally different. Gambling usually doesnt require skills, if you know the game then you can start to play and in order to win you need to become lucky. However there are some games that if you have a knowledge its an edge to predict who might win (e.g. sports betting).

In trading its a must to learn first. Having a plan and strategy can maximize your chance to earn for doing it right. It has risk and no assurance if you will gain like gambling but the outcome is in your hands because it depends how you will act on what coins to buy and how much price you will sell plus your time to monitor the market.
There are only two similarities that I see in both gambling and trading, it is the risks and the term "discipline". The risks in those are really high that is why we should learn how to manage it carefully. Both have different skills and techniques that are important in order to be profitable.

I mentioned the term "discipline" because a characteristic of a good gambler and good trader have a discipline. Discipline in what way?  In trading we should always have a plan where we should we enter and where we should exit in a trade. The discipline that I want to give focus is following our plan where we should have cut loss very tight to protect our capital especially in day trading. In terms of gambling it is also like that, we should have discipline because it is part of our risk and management. We should know when to quit or when to bet more.