We are Traders and Investors, Not Gamblers
I bet many of us have seen this somewhere online, but it's worth taking a moment to really think about it and come up with our own answers.
So if it’s not gambling, what is it? Just high-risk investing?
For me, whether I’m trading or investing, I’d rather eliminate the high risk and just hold Bitcoin long-term. That way, I don’t have to stress over risks.
And hey, if you don't wanna be the kind of trader who just throws away their funds, it’s time to pick up some new skills and strategies. Focus on minimizing risks so you can trade for profit, not losses.
Trading is not gambling, but because trading is very risky is the reason some people call it gambling. I always prefer to advice people to hold than to trade because I know how risky gambling is. Investing in bitcoin is passive but if the money is not touched for a long period of time, it will be highly rewarding than losing while trading.
Playing safe is when you're unable to get what is not in your disposal by force, if you can't afford trading loss, to for an investment, trading has it risk and could also be promising on a very short time, but some don't consider the risk in it, but the best advice for a newbie is starting by investment, no risk attached.
All type of investments has risk involved. They just varies on the degree of risk but even Bitcoin or the safest assets has risk involved.
Many got confused about the difference of gambling and investing even its a high risk.
The purpose of gambling is to have an entertainment while having profit while trading is purely a financial tool. Even the most high risk trading is still considered as trading not gambling unless you are having fun watching those candlestick printed then yeah its gambling already because you seek entertainment on it rather than use it solely as financial tool.
It is true that trading is not gambling, but trading can be used like gambling. And most traders use trading in such a way that it is like a kind of gambling. Because most traders are addicted to futures trading. Where large amounts can be traded with small funds. And there is a lot of opportunity to make profit. Due to which most traders prefer futures trading instead of spot trading. And if you make a wrong entry there, the balance becomes zero. In the case of gambling, if you win, you can win double or even several times more, and if you lose, the balance becomes zero. So in some cases, trading can be compared to gambling.
Yes, in theory, trading and gambling are two completely different concepts. But the line between them is very thin and trading can also become gambling if we use it in a gambling way.
If we trade based on luck, without a clear strategy, using high leverage in the hope of making quick money. We are not traders although we are involved in the crypto market. This just shows that we are gamblers and are using crypto to hide our gambling behavior and satisfy our gambling addiction.
Trading is not the same as gambling, but both carry high risks. Trading can be considered gambling if it's done without proper technical and fundamental analysis, or if it's done haphazardly and relies solely on luck. However, when we have skills, opportunities arise. These opportunities are what we bet on with prior calculations. Therefore, trading isn't gambling if it's done with skill and analysis. Luck does play a role, but sound decisions turn risk into opportunity, not mere chance.
Trading and gambling may look similar on the surface but they are built on very different foundations gambling depends purely on luck while trading depends on analysis, planning, and discipline the reason many people confuse the two is because of how they approach trading when someone trades without a clear plan, ignores risk management, and only relies on emotion or instinct, it stops being trading and becomes gambling disguised as investment. Futures trading makes this even more dangerous because leverage multiplies both profits and losses a single wrong move can wipe out the entire balance thats why so many traders get addicted to it they chase quick profits thinking they can outsmart the market but what theyre really doing is testing their luck just like gamblers do when they chase losses hoping for a win.
Real trading is calculated every entry and exit is based on data, strategy, and probability not impulse when a trader follows a plan and respects risk limits even losses become part of the process because they are expected and managed but once emotion takes over, trading turns into a bet not a business.
I will partially agree with you that trading is similar to gambling because in the long run but a trader and a gambler will attain the same fate which is losses. Trading is a skill and not strictly on luck which makes it look a little bit differ. However, it's better to invest in a long term and don't jump into trading because of short term profits because the market is unpredictable.
There is an interesting fact that perhaps many traders and people who think that trading is not gambling do not know, according to many surveys from the stock, forex and crypto markets. Up to 80-90% of investors are losing money, only a few make a profit from trading. So I somewhat agree that trading is like gambling and it can also be called gambling for those traders who use high leverage, have no discipline and like to take revenge on the market every time they lose.
https://www.newtrading.io/is-day-trading-profitable/
People often say trading is same as gambling because both involves high risks, but that is not true. Trading might be risky, but what makes it stand out is skills, knowledge, strategies and risks management. You can influence your trades to make profits and can reduce your risks as well. Gambling on the other hand is pure luck.
No one should jump into trading with the aim of trying his luck; if the individual does not have the knowledge and skills relevant to trading, he should hodl bitcoins instead. Trading is not by force.
Trading is not gambling and it's risky but when you are taking high risks it is actually gambling..The best way to put it is to say that trading involves taking calculated risks, a lot of traders make the mistake of taking big risks because they are chasing huge profits, this is not what trading is all about, if you can't reduce the risks and take your time to calculate then what you are doing is flipping, sometimes you rely on luck
One thing a lot of traders fail to do especially beginners is to build confidence. They might have developed a strategy but they keep using it only in demo accounts instead of trying it out in the live market. In order to do this just start from somewhere, even if you have to trade with $10, doing this gives you the idea of what to expect and what to do to make adjustments. Trading is not gambling when you know that you are doing
i totally agree with this bro! the difference between a gambler and a trader or investor is the mindset and approach. a gambler kinda relies on luck but a trader or investor relies on knowledge, analysis and discipline even though risk is always there!! you can reduce it with research, good strategies and patience. i personally feel that bitcoin is far better as a long term investment because it removes the stress of daily trading and short term risks as well. trading can be profitable too!!! but only if you treat it seriously like a skill not just like a game of chance.
Trading is a type of business. Basically, in business, we make a physical product or buy it at a low price and sell it at a high price. But here the issue is whether the digital product means selling digital coins at a low price or at a high price. In physical business, you can never panic and sell anything, if you do not, you will lose. Here too, if someone buys a good coin and cannot hold it patiently and sells it quickly in panic, then he will lose. Although trading cannot be compared with physical business. Because trading is a highly volatile place, the ups and downs of coins are high here. So there is a lot of risk here and while trading, you must accept this risk and trade.
Trading is definitely not gambling. But some forms of trading very much resemble gambling. Such as trading derivatives. One wrong move and you lose all your money. That does not seem like trading to me.
Personally I prefer spot-trading. With experience and knowledge on TA/FA, it is definitely a way you can make money. Just not life-changing amounts as promised in gambling (but then again, how often do people get rich with gambling? Almost never).
It makes a difference what you do with Bitcoin or other coins you invest in. The example of October 11th showed us that trading can be gambling if traders are willing to trade with high leverage, and if everything can be lost in a few hours, it's definitely something dangerous and high-risk, not an investment. But if you buy Bitcoin to hold it for 5 or 10 years, that's a safer plan at least you won't lose your coins trading.
Gambling is a game that is completely based on luck and decisions have to be made on emotions and assumptions. But when someone does trading and wants to succeed in it, he has to do planned analysis, do financial activities based on information and strategy. And if there is skill, knowledge and patience then a trader can succeed here. But when someone gambles, he does not analyze the reasons for financial losses, on the other hand a trader or investor learns from his mistakes, changes their strategy and makes the risk manageable. It is a game of skill and mind and there is no need to rely on luck here. If someone can make his position in the market through planning, analysis and patience then it will be considered as responsible investment it will never be considered as gambling.
You are absolutely right that we are not gamblers, we are traders & investors. And in my opinion this mindset makes a huge difference.
Trading or investing becomes real when you make moves based on research, strategy, risk management & longterm goals. Just hoping to hit a jackpot is nothin but foolish
If you are not chasing hype but buying Bitcoin for the long term because you believe in it, then it will be a smart investment, imo
On the other hand, if you trade without a plan, relying only on luck or emotion, then it will be getting dangerously close to gambling
So I would say learn the skills first, control your risk, play the long game, then you will be in investor or trader mode. If you skip that & go full on wing it, then you would be in the casino instead of trading or investing.
All of these have their own individual risks. The only difference is that, in gambling you will always face the risk to lose because gambling is often a game of luck, and not all gamblers are lucky enough, so rest assured that a lot would lose while leaving only 1 or 2 gamblers in profits.
However, with trading and investing, through risks are certain, but we can always manage to lessen the risk if we actually know what we are doing. If we have the proper understanding, knowledge, necessary skills and strategies that would make trading and investing more manageable and profitable. This way, we can avoid chances of losing while we are working on maximizing the positive outcome and make profitable gains in the long run.