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Trading vs Gambling: Similarities and Differences


April 15, 2020 ( Newswire) The discussion on similarities and differences between traders and gamblers don't calm down since the Indian Gaming Regulatory Act was introduced in 1988. We also wanted to do our bit and discuss this controversial but modern and hot topic.

Trading is a process of purchasing or selling securities. Traders aim to buy a certain item for cheap and to sell it at a higher price. Gambling - a process of putting money and hoping to get a payoff. In both situations, when trading and gambling, there are odds and chances.

Every day we read about gambling brands that became popular all over the world and trading platforms that help owners and participants to earn millions of dollars. When traders are called gamblers, they feel offended and depreciated. But are these two concepts as different as both parties would like to think? Let us try and find out the answer together!

Trading and gambling: similarities

Let us start with naming a single word - odds. It engages both parties: traders and gamblers, and greatly influence the outcome of their activity. Those, who are involved in trading, know that they must deal with odds on a daily basis. The same concerns gamblers: they check odds of various casino games and choose the most profitable variant to get better chances of winning and earning.

Traders face huge risks every day and need to evaluate odds in order to increase the chances of earning. Probably, here's when they can use casino bosses' books (if they were on public display). Owners of online and land-based casinos know and accept the fact that at some point they will lose money to players. Often these sums are rather big but the owners are prepared. Experienced traders also utilize these concepts, which makes activities of both rather similar.

The second obvious similarity can be found in the language itself. If looking in a dictionary what the words 'to gamble' and 'to trade' mean, you may find lots of similarities:

The third similar feature is that traders and gamblers need to learn how to remain calm and focused under different circumstances. They will have to pay a big price for stressing out and making rash decisions. It would be rather interesting to see a game of poker between a trader and a gambler!

Differences between trading and gambling

Even though these two parties are rather similar, especially if you are not involved in the world of trading and gambling, they have a few differences. Even being two similar fields, they follow their own ways and that is a thing to reckon with. Here are only a few differences:

Sides of the same coin?

Basically, trading and gambling are much alike. They both rely on risk and odds and are ready to lose money hoping to gain more. However, there are still many differences especially when it comes to the duration of the process and stop losses. And even though both these industries go different ways, there is much to learn from each other. So instead of being offended or even calling names, traders and gamblers can learn from others' lessons and improve their chances of winning and earning.

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