Share Trading is Gambling

Share Trading can be Considered as Gambling

Posted in Traders' Delusions, Submitted by Trading Critic on Thu, 2007-05-10 23:11.
Share Trading can be Considered as Gambling

Share Trading is gambling. There. I said it. The worldwide stockmarkets are one big glorified casino. Or is it? It depends on how you see it: your perspective. I've defined what gambling was and concluded that trading WAS NOT trading in this article at MyShareTrading.com. But I revisited the idea after discussion and reflection about the topic with a few colleagues and I eventually turned my perspective to conclude that trading WAS INDEED gambling in "Gambling Revisited". To keep the argument simple, everything in life involves risk. Driving a car is risky. Having a job is risky. Setting up your own business is risky. Living is risky. And so Investing is risky. Owning a house is risky. Trading is also risky. And so anything to do with risk, playing the odds for a "positive" result, is a gamble.

Personally, I associate share trading with gambling because it is so similar to a visit to a casino. Professional casino gamblers usually have some sort of gambling system they follow. And in turn, professional share traders (or stock traders) also have a system or a trading plan which they follow. Both want returns. Both ventures aren't creating anything useful except a positive reward if the odds go your way. Investment isn't usually associated with as much risk as it is usually longer term compared to share trading. Investment can include property, longer term stock investing or putting money into a business venture. Why aren't they associated with as much risk as short term share trading? Because the results can be researched more thoroughly, and because of the long term nature of the investment, actions can be taken to fix or improve returns. But in my mind, it is still a gamble - just in the longer term. You make your own mind up.

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