How do you know if you are gambling or not?

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Hi

How many of you think forex trading is consider gambling or not gambling?

If pro traders know they will profit or but expected a loss on a trade is it gambling?

If newbies just wants profit and actually profited it is luck?

What are your definition on forex trading and would you consider yourself a well educated trader or just pure luck trader or both?

 
When you don't have a clue about what you are doing or why you are doing what you do.

vs

Knowing exactly what you are doing and why you are doing it.
 

You have to agree with Marco that either you know what you are doing and why you are doing it or you don't have a clue what or why you're doing it.

For those under taxation for trading is considered an "Investor" and not "Gambler" because for those not paying taxes on trading that is a gambling.

Go read about famous trader instructors who traded for years and made hundreds of millions only to be charged with tax evasion and loose it all.

 
Gambling: you have no control over the market, you can't foretell the outcome even one tiny bit.
 
Marco vd Heijden:
When you don't have a clue about what you are doing or why you are doing what you do.

vs

Knowing exactly what you are doing and why you are doing it.

Agree!

 
We're all gamblers. Traders are still in the denial phase, and they'll eventually accept that nobody can forecast the future and so accept they're gamblers too :-)
 
Pimpinela:
We're all gamblers. Traders are still in the denial phase, and they'll eventually accept that nobody can forecast the future and so accept they're gamblers too :-)
I think you are very wrong Pimpinela. It is how you approach your trading that essentially qualifies you as a trader with calculated risk management OR a pure gambler that uses no assistance ie: Indicators, Ocillators , and financial/geopolitical news. It is not about predicting the future as you suggest. You have to extract information from the market and find out whether bulls or bears are in control. You need to measure the strength of the dominant market group and decide how likely the current trend is to continue. It is not about forcasting! And obviously it is about conservative money management aimed at long term survival and profit accumulation. To trade without risk management ie automatic stop loss - is poor management - not gambling.
 


- Bet the one that plays roulette:
He can not predict the result.

He does not have (and can not have) a system that makes the odds in his favor.


- Trading the casino:
It does not predict the result.
It has the odds in favor.

Similarly, the trader who has the odds in favor (and I think this is possible if he have a good system), is doing business.
 
DD 20% and You are a gambler.
 
Statistics of trades overtime. Similar to a dice game at a casino. 5 players play 20 games there may be more winners then losers but run that same simulation on 100 players and 10000 games and you will quickly see that there are more losers then winners. 
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