Addictive behaviors usually have a predetermined payout. Commerce does not. Trades are determined by the fundamental value of the stock, currency or crypto instead of an obliging house that has already decided whether your bet will win or lose. Rather, traders use mathematical and statistical tools to determine what is likely to yield the best result; at least they do their best to do so. Traders don't just play hunches like gamblers flipping coins with the odds against them and waiting for the odds to take their course before cashing out their bets.
What separates trading from riskier behaviors – which some people get addicted to – is the use of math, statistical tools and common sense to make money. In the absence of any formal education on the subject, you can learn a lot about how to trade out of the blue just by following some simple risk management tips and learning as much as you can about core values before trading n any asset class. Risky trading, on the other hand, is more of an art than a science, which makes it easier to tackle but harder to master.
Whether or not trading stocks, currencies, and crypto is gambling has been debated time and time again. Is it so difficult for someone to see the difference between the two? Is it human nature to be so entrenched in their own beliefs that they refuse to change them even when faced with overwhelming evidence that contradicts them? Is this what makes gambling so dangerous for people who can't seem to completely separate it from trading or do they just don't want to see the truth of how investing works and why it's not a form game?
Some people think of trading as a kind of game. Is that really the case? Is there something about trading that makes it fun, even exhilarating if done right? Is this what keeps so many traders involved despite the risks and dangers attached to it, even when they are unaware of the reality of those risks? Is it safe to assume that most people who trade stocks, forex and cryptocurrencies do so because they have an innate desire to win as opposed to those who are playing with all the odds against them? Is gambling just a game of chance when trading is really a form of investing instead of flushing your money down the toilet for no good reason?
The honest answer to these questions is that there is no simple, straightforward yes or no answer to either question. Trading is a game like chess, while gambling on the other hand is more like playing Russian roulette. Is trading as dangerous as Russian roulette? Is it also based purely on chance? Is trading done to make money and not to be bored? Is it possible to understand how the trading process works in order to get the most out of it? Is understanding how it works enough or is early preparation and thorough education a key part of the trading process?
Is there as much risk involved in gambling as there is in trading when done without any formal education or real knowledge of how it works compared to what is needed to master the game? Is the use of essential, common sense risk management tools enough to protect traders from themselves when trading stocks, currencies and cryptocurrencies or should more be done at a government level to mitigate the inherent risks of trading as opposed to gambling alone?
Is it the nature of the game that attracts so many traders or is it just how easy it is to get carried away with the excitement factor that makes trading so much more fun than participating in the game?
Is it possible to win by applying scientific methods to trading as opposed to gambling every time, even though both are apparently done for the same reasons? Is trading the same as buying stocks and bonds for the sole purpose of making a profit? Is it possible to make a profit investing in things like stocks, crypto, forex or CFDs instead of outright betting on their performance over time versus just betting against them for gains at short term, regardless of the outcome, whether positive or negative?
Is it human nature or an addiction to the pleasure of winning that prevents most traders from seeing the differences between trading and gambling and what makes trading not a form of gambling despite the many similarities they share in the way they work? Is it possible to be a winner by comparing the inherent risks of both types of businesses before attempting to make a profit either way and then making sure you have adequate protection regardless of the risks you are exposed to? ?
Is it possible for traders who play the game correctly to win versus those who don't know how the trade really works when done well versus gambling? Does it use stops based on chart signals and/or technical analysis to lock in your profits and/or limit your losses enough that trading is not as dangerous, if not more so, than gambling, or should the government- it put in place taxation on trading activity to offset some of the inherent risks associated with it? Is it a necessary evil that most unsuccessful traders do so because they have no idea how to go about it without suffering a major loss in the process? Is trading so different from gambling when done correctly? Isn't doing both at the same time twice as bad as either alone and why? Is it possible for professional traders to virtually eliminate the risks involved by using good money management techniques as well as other time-tested strategies such as trading indicators, chart formations What about candlestick patterns? Is the idea of using stop losses when trading stocks, forex or crypto unrealistic compared to gambling where you cannot lose more than the initial amount you bet on each roll of the dice per example, no matter what happens?
