Is stock trading a gambling?
#1
This question may sound awkward to everybody but please try to understand me asking this. I am a religious person kasi and i'm active sa church namin. From the day that i stepped into trading, doubt started to fill in to my emotions and thinking , always asking myself if stock is a gamble or not. Its been a fight between my "business minded character" and as a "God serving disciple" since then.Some say that it is a gamble because you might loose or win.And some say its a part of business, like when you buy something and of course you want to sell it high if you want to profit or you might also "malugi" if no one wants to buy it at your given price. I hope you could share something about this to clear my mind.

Thanks and more power SMP.!!Angel
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#2
I think it depends on how you approach it. If you trade without a plan then that is gambling because that means you do not know what you are doing and just letting whatever it is out there to decide if you will lose or not. At least if you have a plan, you know what to do when markets go nuts; same with when markets behave nicely, you know in advance when to exit. You basically have structure in your approach which makes it systematic. It gives that "feel" that you know what you're doing and approaching it in a business-like manner.

Chos. banana
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#3
Bro project500k,

Welcome to SMP. Actually we had a very lively discussion on this matter on the CAL thread. I already expressed my views on this matter per my Post:#1464 which I concluded with Post:#1483. I will re-post them here so you don't have to backread.

================================================

CAL Thread Post:#1464

Bro Liyam,

I just want to express my opinion and also to enlighten Shoegazer and Jayb. Stocktrading is a profession. As a matter of fact, one of the best moneymakers in the U.S. are stocktraders.

Going into business and stocktrading is not gambling. When you gamble, you throw all caution to the wind. When you do business and do stocktrading, you take calculated risks. Calculated risk in the sense that you first make a lot of preparations before making your decision. Before going into business, you first do a feasibility study to assess your chance of success. In a similar manner, you study first stock's price action before you make any trade.

To be a successful stocktrader you need to continuously learn. Learn theory from books, apply it to actual trading situations, repeat the process if you make a successful trade and learn from your mistakes. For me, it is now a MUST to read all the relevant threads in SMP before I start trading.

To Shoegazer and Jayb, it takes a trader to understand a trader. Non-traders will never understand our passion. Do not be discouraged by setbacks. Do not let anybody tell you what you can and cannot do. Always decide for yourself and take full responsbility for the result of your decisions. In the end you will be a better person.

CAL Thread Post:#1483
Hi Guys,

I just came back from an out-of-town trip and saw a lot of posts here.

I know where all of you are coming from and I clearly understand all of your positions. Actually this started between two newbies being given by their family and friends wrong impressions about trading. I take it that is our responbility to give newbies sound advice and proper perspective to help them become better traders.

To end this discussion please ask yourselves this question and give yourselves an honest answer (you don't even have to print it here). ARE YOU A GAMBLER OR A TRADER?
=======================================


Bro project500k, trade with a clear conscience. Based on my observation, traders come from all walks of life. As traders, we are also helping our country build its capital markets.

I wish you success in all your trades and in your trading career.

To Admin:

Paki-delete na lang itong post na ito para hindi doble. Thanks.
RESPONSIBLE TRADING, my Advocacy, means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

MY TRADING PHILOSOPHY:
TRADING without FEAR, TRADING without GREED. GREED causes exposure to DANGER. FEAR causes missed OPPORTUNITIES.

MY TRADING RULES:
1. PROTECT YOUR CAPITAL at ALL TIMES. 2. TRADE to TRADE WELL not only for MONEY.
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#4
Bro project500k,

Actually we had a very lively discussion on this issue before on the CAL Thread per my Post:#1464 which I concluded with Post:#1483. I will just repost them here so that you don't have to backread:

===================================================

CAL Thread Post:#1464

Hi Liyam,

I just want to express my opinion and also to enlighten Shoegazer and Jayb. Stocktrading is a profession. As a matter of fact, one the best moneymakers in the U.S. are stocktraders.

Going into business and stocktrading is not gambling. When you gamble, you throw all caution to the wind. When you do business and do stocktrading, you take calculated risks. Calculated risk in the sense that you first make a lot of preparations before making your decision. Before going into business, you first do a feasibility study to assess your chance of success. In a similar manner, you study first stock's price action before you make any trade.

To be a successful stocktrader you need to continuously learn. Learn theory from books, apply it to actual trading situations, repeat the process if you make a successful trade and learn from your mistakes. For me, it is now a MUST to read all the relevant threads in SMP before I start trading.

To Shoegazer and Jayb, it takes a trader to understand a trader. Non-traders will never understand our passion. Do not be discouraged by setbacks. Do not let anybody tell you what you can and cannot do. Always decide for yourself and take full responsbility for the result of your decisions. In the end you will be a better person.

I wish you two and also Liyam more successful trades.

================================================

CAL Thread Post:#1483

Hi Guys,

I just came back from an out-of-town trip and saw a lot of posts here.

I know where all of you are coming from and I clearly understand all of your positions. Actually this started between two newbies being given by their family and friends wrong impressions about trading. I take it that is our responbility to give newbies sound advice and proper perspective to help them become better traders.

To end this discussion please ask yourselves this question and give yourselves an honest answer (you don't even have to print it here). ARE YOU A GAMBLER OR A TRADER?

========================================

Bro, always trade with a clear conscience. As traders, we are helping our country build its capital markets thus contributing our share in nation building.

I wish you success in all your trades and in your trading career.
RESPONSIBLE TRADING, my Advocacy, means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

MY TRADING PHILOSOPHY:
TRADING without FEAR, TRADING without GREED. GREED causes exposure to DANGER. FEAR causes missed OPPORTUNITIES.

MY TRADING RULES:
1. PROTECT YOUR CAPITAL at ALL TIMES. 2. TRADE to TRADE WELL not only for MONEY.
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#5
(09-07-2012, 12:06 AM)project500k Wrote: This question may sound awkward to everybody but please try to understand me asking this. I am a religious person kasi and i'm active sa church namin. From the day that i stepped into trading, doubt started to fill in to my emotions and thinking , always asking myself if stock is a gamble or not. Its been a fight between my "business minded character" and as a "God serving disciple" since then.Some say that it is a gamble because you might loose or win.And some say its a part of business, like when you buy something and of course you want to sell it high if you want to profit or you might also "malugi" if no one wants to buy it at your given price. I hope you could share something about this to clear my mind.

Thanks and more power SMP.!!Angel

if you generalize and perceive stock trading is gambling, then putting your money in the bank is also a gambling since you don't know if you'll lose money or not, investing in bonds - since the creditor might default. similarly, if viewed this way, business is also gambling since you don't know how the public perceives your business - it might go bankrupt!

for me, it is not gambling, much like everything in life, like playing poker, baccarat, blackjack, it is a calculated risk in which the higher the risk, the higher the return.

for me, i simplify my life and do it this way.

if it has a risk reward ratio of 50% or less, it's a gamble. anything above it is a calculated risk. Big Grin
buy high, sell higher!

stock market abbreviations (for newbies)
http://www.stockmarketpilipinas.com/post...g#pid11738

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."


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#6
to sir kiko, sir ninja, and sir glenn, thank you and i really appreciate the explanations, it is helping me to ease my mind and my heart.
Pwede ba makahirit pa? Regarding sa phrase na " If somebody win,then somebody loose."
How do you guys see this?
baka meron po nito older post pls paste na lang here para di ko kayo mapagod.
Godbless..
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#7
(09-07-2012, 11:52 AM)project500k Wrote: to sir kiko, sir ninja, and sir glenn, thank you and i really appreciate the explanations, it is helping me to ease my mind and my heart.
Pwede ba makahirit pa? Regarding sa phrase na " If somebody win,then somebody loose."
How do you guys see this?
baka meron po nito older post pls paste na lang here para di ko kayo mapagod.
Godbless..

Bro project500k,

By context, the stock market is two-player zero sum game, and just like in any other games or sport be it basketball, chess, or a martial arts tournament there is always a winner and a loser unless the game ends in a draw.

This is a fact of life. In any two-player zero sum game, there is no win-win situation. So applied to trading you cannot expect to win all the time. I have yet to know or see a trader who has not lost a trade in his trading career. For me the keys to trading success are DISCIPLINE, KNOWLEDGE and CAPITAL. If you do not have the first two, your capital will vanish before you can even say "trendline."

Every trader experiences losing trades. Those who say they haven't are definitely lying. What is important as you grow in your trading career is to have more winning than losing trades and you will achieve this only by exercising DISCIPLINE, expanding your KNOWLEDGE base and protecting your CAPITAL at all times. In essence, this is what I call RESPONSIBLE TRADING.

Keep the questions coming. In a way I am also learning because it gives me a chance to review situations I encountered in my trading career.

I wish you good luck in all your trades.
RESPONSIBLE TRADING, my Advocacy, means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

MY TRADING PHILOSOPHY:
TRADING without FEAR, TRADING without GREED. GREED causes exposure to DANGER. FEAR causes missed OPPORTUNITIES.

MY TRADING RULES:
1. PROTECT YOUR CAPITAL at ALL TIMES. 2. TRADE to TRADE WELL not only for MONEY.
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#8
thank you sir ninja +1rep for you. goodluck also..
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#9
YESSSSSSSSSSSSSSSSSSSSSSSS...by definition - Gambling (or betting) is any behavior involving the risk of money or valuables on the outcome of a game, contest, or other event in which the outcome of that activity is partially or totally dependent upon chance.

tinawag lang na stock market para hindi magalit ang mga pari hahahahahaha
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#10
(09-07-2012, 12:45 PM)project500k Wrote: thank you sir ninja +1rep for you. goodluck also..

Bro project500k

Thanks. If you have the time, I also suggest that you visit the Off Topic Thread. We have done a lot of discussions there that are useful to newbies. In one of my posts, which I quote below, I gave a learning roadmap:

=============================

ec2r_26 Wrote:
^^ thanks sir ninjatrader. very helpful for newbies like me.. i really want to be expert on this field and plan to make it a fulltime thing.
i just want to ask if you (or anyone in smp) can tell me what are the basic things that i should learn first? what are the foundations in trading that i need to develop first? and where can i go to learn these things in order for me to improve. have you gone through proper training or took some courses related to trading? thanks in advance..

- if you want to be great, be in the company of great people.

Bro ec2r_26,

I was full time in the corporate world and I always wanted to do trading but simply could not find the time. When I finally found the time to trade, I started with zero knowledge so I had to devise my own road map as follows:

I. BASIC
A. Support and Resistance
B. Trend Lines
C. Moving Averages

II PRIMARY
A. Chart Reading
- Price Bars
- Japanese candlesticks

B. Chart Patterns
- Continuation patterns
- Reversal patterns

III INTERMEDIATE
A. Indicators and Oscillators
B. Fibonacci Retracements

IV. ADVANCED
A. Elliott Wave Theory
B. Money Management

For newbies, I suggest that they don’t start trading until they have learned Money Management. This is very evident in my first trading rule: Protect Your Capital at all Times.

You can do a Google search on the various topics or you can go to Investopedia.com. Slowly, I have developed my own trading system which I call Ninjatrading. However, nothing in my system is cast in stone. I continuously study and research and I discard things which no longer work for me.

Good luck in your quest for trading knowledge and I wish you success in your endeavor.

======================

This is my own roadmap. You have to do the traveling by yourself. Please take whatever route you think is more suitable for you.
RESPONSIBLE TRADING, my Advocacy, means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

MY TRADING PHILOSOPHY:
TRADING without FEAR, TRADING without GREED. GREED causes exposure to DANGER. FEAR causes missed OPPORTUNITIES.

MY TRADING RULES:
1. PROTECT YOUR CAPITAL at ALL TIMES. 2. TRADE to TRADE WELL not only for MONEY.
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