SIMILARITIES BETWEEN TRADING AND GAMBLING

Gambling can be termed as a marking a possibility at doing something which is often characterized by a balance between winning and losing that is governed by a mixture of skill and chance with money wagered on. The above definition depicts gambling, also trading could be defined as a series of transactions which is usually buying and selling of stocks, commodities, currency pairs, or other instruments. When you ask someone, what is the reason why you gamble? Most say it is a form of entertainment, some might say it is a means of increasing their financials. Others would just tell you that aside from placing a wager on their favorite games. They enjoy playing such games, meeting new people, and relieving themselves of the day’s stress.

The truth is, no matter your reasons for gambling one would always fancy making an extra bonus from it. Such also applies to trading, the sole aim of trading is to make a profit and for this reason, there are based on probability, luck, chance to make wins. Another amazing thing that is common between both terminologies is the fact that most people venturing into these areas always end up losing a lot of their finances and very few have stood the test of time and can call themselves successful gamblers and traders. So one must find out both in gambling and trading the advantage the markets have over most traders and why they always lose money and also the advantage the house edge has in each of these games. If you do not know this, then how can you possibly be a winner in this industry? Placing a trade without this knowledge is more like gambling. Below are some of the major similarities between trading and gambling:

The Results are Wins and Losses

A major similarity between gambling and trading is that they generate immediate results. Just like a gambler spins the roulette wheel and in a matter of seconds, he/she is either richer or loses the original bet placed. Esports bettors who would bet on a particular team to win a tournament in a game like PUBG on popular betting sites like King Billy and in a matter of time you either win or lose your money.

The truth is that most people do not see past the initial reward or punishment that occurs as they are mainly concerned about finishing the session with more money in their pockets. For professional gamblers, this is not so as they look at it from a broader horizon, they keep a track record of their performances over time and have it in mind that those sessions would consist of both upswings and downswings.

The same applies to trading especially for short-term traders who collect profits at the end of the day. Most say that they are unconcerned about the results and are interested in the success of their strategy, but is this really true? The answer is no because you find out that before the day runs out they are already monitoring their trade to see if they made profits or losses. Forex traders and binary traders fall into this category while stock traders are the only exception.

They don’t consider the magnitude of risk taken

Most gamblers and traders are always concerned that they are in charge of their actions while others accept that they cannot entirely control the outcome. When it comes to risk-taking both in gambling and trading, the concept and mechanics are the same. If you want a high return then you definitely need to hope that an event with a low chance of success will come to pass. Most traders are usually of the idea that most calls or decisions made in gambling are reckless, even though for them it is almost the same as they place trades based on speculation, inefficient trading signals/indicators, and even trading robots. Both of these actions can both be said to be reckless. Another common mistake is that both gamblers and traders are not always happy to be marginal winners. When they are just a little bit above profit they are tempted to call that proof that they are winning and assume that an increase in the stakes will bring in bigger profits. This is only valid theoretically, but in reality, higher stakes call in for fear and cloudy judgment which may make one end up losing more.

Both make you feel in control and results are based on your skill and experience

If you can tell a trader that a successful trade he/she had was based on luck rather than skills or analysis they made. They tend to be outraged and angry and would always tell you that the profits came as a result of their skills. On the other hand, they are very quick to blame luck for losses or when the market is being manipulated. The same happens with gamblers when they step into gambling houses, their sense of reasoning and attitude suddenly changes. For every minor victory they congratulate themselves and when big losses occur the story turns different filled with despair and excuses are given for anything bad that happens to them. The truth is both trading and gambling is heavily influenced by luck but it has a strange effect on those in these habits.

Both have a passion for systems and ideas

Both gambling and trading have a passion for different systems and ideas but funny enough they always contradict themselves. A gambler would gladly dismiss the theories and strategies of a trader as nonsense and a waste of time. They claim to see no need in spending hours looking at charts, tables, and reaching financial reports trying to come up with a good fundamental analysis.

Traders on the other hand look down on gamblers and don’t believe how stupid systems such as the martingale, labouchere, pasali could actually work. For those who consider themselves as arithmetic genius and experts in numbers they see gamblers as kids playing with coins. The truth experts in numbers they see gamblers and traders are absolutely correct for tagging each other as dreamers and the truth is when you get fully absorbed in an activity that you expect to make a source of income, you can no longer be realistic about your chances.

Over-reliance on computer programs and software

Currently both in gambling and trading, the system is filled with guides, books, computer programs allegedly helping people to boost profits. The internet has led to an influx of computer programs and various materials aggressively such that we do not even know the real motive of these so-called guides and programs. Whether it is to actually help people maximize profits or is just a business strategy to sell their ideas and make more money for themselves.

Trading is even the worst as everyday new so-called robots, automated trading programs, guides, and ideas are populating the whole system. The idea from the authors is that the strategies if followed, are always a success and can give you double-digit success. The truth is all these are lies as every author wants to make a profit for themselves. People tend to invest more money with the confidence that they have miraculous software ensuring profits. This can cause you to lose your bankroll and a hell of fortune.

The positives we could gather from the advent of the internet is the availability of a different variety of deposit codes at popular games like King billy, you can check no deposit bonus promo code to know more about them. Also, we can have access to gamble in the comfort of our homes or whichever location we are in the world. Such also applies to trading as there are trading apps made available for smartphone devices which bring the markets closer to you.

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