Is Trading Gambling?

Is trading gambling? Well, yeah, it’s gambling but is that necessarily a bad thing? Casinos gamble and they have an edge and they win almost all the time. At least almost every month and most days. So, yeah I would say trading is gambling but whether or not you have an edge is the important thing. If you don’t have an edge than it’s going to be a losing gambling proposition. If you do have an edge, it’s going to be a winning gambling proposition.

By the way, almost everything in life is a gamble, for instance even being in business is a gamble. You have to put up money to start it. You have to invest time and you don’t know if it’s going to be successful.

So, the important issue really is do you have an edge in your trading? If you have an edge over time provided you don’t over bet you’re going to make money. So, it’s important to be professional about how you approach trading and to recognize that there is money at risk and to be intelligent about the types of risks that you take but if you get your risk under control and you’re sure you have an edge, and you execute properly and you treat the job professionally…you have an excellent chance of doing very well.