Shares/Stock Is Trading Similar to Gambling?

Jasmine

VIP Contributor
A lot of people associate trading with gambling. That’s because just like with gambling, you make money based on your correct assumption. For example, you will win in roulette game if you can guess the correct number. Likewise, you will win in trading if your assumption on the assets becomes correct, for example, you bought Tesla stocks Apple stocks for $143.10 and you predicted that the value will go beyond $144 by the end of the day and your assumption becomes correct and you make money from this trade.

You make millions from gambling if your predictions are correct, and you also make millions from trading if your assumptions are correct. However, trading is not gambling even though these both activities are based on one simple strategy presumptions and assumptions.

When you are trading, you are trading assets, these assets are backed by real world activities. For example, you trade forex, foreign currencies are backed by governments; you trade stocks, and stocks are backed by the companies and businesses.
 

Yugocean

Valued Contributor
The bets placed in gambling are real currency or real currency backed assets, so trading is also considered as gambling, however, trading is not gambling at all. In trading, you will still have the assets, even if market fall, you may gain it back when market will take bull runs, but, in gambling, you will lose your assets if you lose it once., it will not come back to you even if you win next bet.
 

Suba

Moderator
Staff member
Although many people think that gambling and trading are the same, but in my opinion, there are similarities between the two that are hard to win. Especially if you enter the wrong Dealing Desk broker of the Bucked Shop type, of course you will always lose, because often these forex bookies cheat, In gambling there are also lots of fraudulent bookies, and in general gambling players use probability theory and luck factors, while in trading, using a strategy or analysis of fluctuating market prices, this skill is used by traders to take profit.
 

Mika

VIP Contributor
Trading and gambling are entirely different. When you gamble and when you lose, you will lose your entire funds. When you trade, and when the market goes down, you will not lose money until you sell your assets, If you continue to hold assist you can recover your investment. When you are trading, you can diversify your holdings and positions, and get complete protection against all kinds ort market risks. If you are trading 10 assets, not all assets will be at loss, you will still have assets that are making profits. If pay careful attention to the markets, you will understand when the market will decline or when the market will go up because you will understand the market indicators. If you see a decline in one market, for example, the stock market, there will be repercussions in other markets as well, therefore, if you are in real estate, you will get a cue of what will happen.
 
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