If you daytrade commodities or stocks, would you consider it as a gambling? Please explain why or why not.
2006-07-01 16:25:25 · 8 answers · asked by upblitz 1 in Business & Finance ➔ Investing
and what good would I do to anyone if I even TRIED to answer such a foolish question? is YES enough to you mate?? Can I ask YOU what FOOD you have grown up with please.
2006-07-13 05:03:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In gambling, you are dealing with chance. There is no underlying asset here that has value. There is no Supply and Demand in this equation. There are no Support and Resistance numbers. You risk the full amount of your bet (investment).
In speculating on an asset, there is always demand, therefore there will be support for price. Sellers will come in at Resistance. These are popular trading points to increase your odds of winning. Others trade at Fibonacci retracement levels. There is no such thing in the casino.
There are literally hundreds, if not thousands of fundamental scenerios that apply to any stock or commodity. Likewise there are literally thousands of methods using Technical Analysis. These things do not apply to chance and random numbers.
Many traders use the trend to give them direction, buying on dips in an Uptrend, and selling on rallies in a Downtrend. When a trend is broken, the position is reversed. There are no trends in gambling.
When you place a bet at the casino, it is all or nothing in the next few seconds. When I bet on a stock, I can take any portion of my profit or loss at any time, or I can let it ride for a month or year or decade. I can limit my loss with a Protective Stop, and I can move my stop closer to price as the price moves in my favor.
You can certainly gamble in the stock market or commodities market or in real estate or the future direction of car prices. And you will lose in the stock market, just like you do at the casino.
You seem to be a novice and uninformed about trading. A successful trader generally has rules that he applies over and over to duplicate success. A professional trader does not simply "roll the dice." He is a learned man and makes informed decisions based on many factors affecting his "investment."
There can be no great success in trading (life) without great commitment, hard work, discipline, and the realization of the “right” type of thinking. Gambling is not "right" thinking.
It is the trader’s attitudes, beliefs, and discipline that ultimately yield results. Courage and positive attitudes combined with sound market principles and methods will, in time, result in the desired outcome.
One of the most important Samurai texts ever written, by Miyamoto Musashi, “The Book of the Five Rings (1643)”, offers this advice: “Think of what is right and true. Learn to see everything accurately. Become aware of what is not obvious. Be careful even in small matters. Do not do anything useless.”
Gambling is useless, while speculating can make you rich.
2006-07-01 18:31:06 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
No, its not gambling. Buying preferred or common stock is giving the company added capital to improve their business. That is why the company offers stocks in the first place. You own a part of their company when you buy stock. Options are speculative. I am a daytrader and I research extensively the company before I buy stock. Good management, good moral practices and employee incentives are all part of the analysis I go through.
2006-07-08 15:29:49 · answer #3 · answered by KG 1 · 0⤊ 0⤋
Speculation should not be considered purely a form of gambling, as speculators do make informed decision before choosing to acquire the additional risks. Additionally, speculation cannot be categorized as a traditional investment because the acquired risk is higher than average.
More sophisticated investors will also use a hedging strategy in combination with their speculative investment in order to limit potential losses.
So it is up to you whether you are taking informed decisions in day trading or just depending on chance. Your skill is important.
2006-07-14 06:21:55 · answer #4 · answered by StraightDrive 6 · 0⤊ 0⤋
I am a Professional Daytrader with over a decade of experience.
Am I the luckiest guy on Earth?
Top 3 Answerer in Business & Finance. (Vote for me)
2006-07-01 18:16:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It depends on WHY you are day trading. Are you doing it for the rush? Do you think you'll make money at it? Do you have a "system" ???
If you answer yes to these questions, then it's gambling. You need to really know the market to day-trade and even then, there are too many variables for most people to succeed. At least in Vegas, you know the odds. In day-trading NO one knows the odds.
2006-07-01 18:03:07 · answer #6 · answered by CarolO 7 · 0⤊ 0⤋
It is gambling only if you don't get educated first, then have a trading plan, complete with financial, risk and emotion management.
2006-07-02 00:27:55 · answer #7 · answered by andrew f 3 · 0⤊ 0⤋
TAXES it all comes down to government control.
2006-07-01 16:30:10 · answer #8 · answered by mlee404 2 · 0⤊ 0⤋