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Day Trading versus Casino Gambling: is there really a difference?

Personal_Finance / Gambling Sep 25, 2019 - 05:13 PM GMT

By: Submissions

Personal_Finance

All around the world, day traders hate being compared to gamblers. And why should they? They use numerous tools to analyze data, follow news round the clock and regulate when they take profits and top losses.

Despite that, there striking similarities between day trading and gambling. Let’s explore these features while also outlining elements that differentiate the industries. 




#1: Reliance on Odds

Whether you play slots or bet on sports, you must weigh in the odds of winning a wager before you place it. The same applies to trading. Before you bet on the euro to strengthen against the US dollar, you must do market analysis and conclude the odds are in your favor.

But as you know, odds give you hope but not an assurance that your bet will be correct. The euro could end up weakening against the US dollar. Your bet on soccer giants Real Madrid to beat league compatriots Valencia could also be wrong.

Fortunately for traders, their “house” doesn’t always win. What this means is that, unlike a gambler, a trader isn’t expected to make more losses than wins in the long run. A gambler could also form a strategy to win consistently. But if they played the same game repeatedly, the casino will make more money than the player.

#2: It is easy to underestimate the risks

No matter how good you are at trading, you must have underestimated the risk of making a specific trade one or more times. It happens because it is so human to believe you are in control a trade even when you are not.

Casino gamblers also have the same problem. After they choose new casinos with UKGC licenses at Zamsino, they wager moderately for a while. But once they start forming winning trends, some lose control of their disciplines and end up risking too much.

Not many traders and gamblers love winning small amounts anyway. Even if every expert advises you to take marginal profits consistently, there’s a time you’ll get tempted to make a huge trade. On the bright side, you can always get back to being a disciplined trader or gambler. It takes a strong mindset to be disciplined but this is something every professional can achieve.

#3: Instant Wins or Losses

Most day traders close their traders after a few minutes or several hours. At times, they take profits or stop a loss within seconds of purchasing an asset. In all the casinos you find at Beaverslots, Kiwislots or Leeuwslots, it is the same story.

A gambler who wagers on Euro casino slots machines makes profits or losses within seconds. Players participating in blackjack and poker tables take up to thirty minutes to learn the fate. Still, it is a much quicker way of reaping your investment than most businesses out there.

Of course, earning profits or losses quickly isn’t a problem. The issue is that many traders and casino players fail to have long-term goals and visions. As a result, they have no real way of knowing whether what they do is something similar to a job or classic gambling.

#4: Tendency to ignore Facts and Stats

Sports bettors and day traders deal with numbers all their lives. But when confronted with facts about how much they earn, both traders and gamblers tend to exaggerate. Neither professional wants to admit it when they make more losses than profits.

It is not like all traders and gamblers make losses always. Both professionals have ways of maximizing their profits. Traders must invest in their expertise, utilize all helpful trading tools and become disciplined.

Casinos players, on the other hand, have strategies and formulas for defeating the house. They can also utilize bonuses to minimize their losses. These bonuses are available to players in all countries but players must find them. The best free slots no deposit in Canada can be found at Gambla.com. Rewards for players in the UK and New Zealand can be found on Beaverslots and Kiwislots respectively.

#5: Reliance on Software and Cheat Codes

Many day traders have tried to cheat the system at least once. No, they don’t hack their brokers’ systems but they use bots to trade for them. Some of these bots promise ridiculously high profit margins. But as you probably know, many of them are worse at trading than novices.

With casino players, cheating happens in many ways. The most notorious players hack slot machines to steal money from the casinos. Witty players use tricks like card counting and dodgy strategies to beat the dealer.

For the lucky ones, trading programs can lead to profits for a while. Card counting and using strategies can also work for players. But because these programs and online-bought casino strategies have flaws, they are more useless than they are helpful.

#6: A Love for the Fundamentals of what they do

You could say there are many professionals who genuinely love what they do. However, there’s a striking similarity between the things traders and gamblers love about their jobs. On the one hand, traders fancy the movement of numbers, the charts and financial reports.

On the other, gamblers love the spinning of slots, their tuneful soundtracks and the thrills that come with winning. As such, both traders and gamblers have a lot of passion on the way their professions operate eve if they don’t agree with one another.

The Differences

Traders love to emphasize the differences in their jobs to gambling and that is alright. Unlike gamblers who may find their job exciting even they lose, trading is only enjoyable when you make profits. And this leads to the next point.

Traders must be very cautious in how they make trades. Gamblers also have to research games and place bets carefully. But in many cases, there is no skill in how a casino player makes money. Day traders must analyze their trades meticulously though. Otherwise, placing random trades will never guarantee a profit.

To Conclude

Traders and gamblers may always disagree on certain things. But one thing is certain. Knowing how to identify great odds can help you increase your wins. Being disciplined can help you create consistent winning patterns and having a desire to learn can lead you to better strategies.

By Ronny Martelli

© 2019 Copyright Ronny Martelli - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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