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7 Differences Between Trading and Gambling 

2 Min Read
Jonathan Henault Aug 24, 2021

“I’m not investing my money, I’m not a gambler”.

This is a common misconception, and one of the biggest excuses for the people who don’t want to invest, whether because they are simply afraid or because they don’t understand what trading is.

Well, if you don’t want to invest your money, it’s up to you, trading is definitely not for everybody. But we have a lot of reasons to think that trading is NOT gambling and that you won’t be able to use this excuse anymore. Sorry, not sorry, let’s play the game of the 7 differences between trading and gambling.

7 differences gambling trading

Sorry, not sorry, let’s play the game of the 7 differences between trading and gambling.

 

  1. The people

NYSE ain’t Las Vegas, and Wall Street ain’t Fremont Street. Less flashy lights and more serious people in classy suits. 

  1. The strategy

A gambler puts up money in the hopes of a payoff if a random event occurs. But nothing is random when it comes to trading. A wise investor knows that if the market is unpredictable, it doesn’t mean you don’t need a real trading strategy

  1. The analysis

Buying stocks without studying companies is like betting at poker without looking at your cards. You can’t count the cards, but you can analyze the market’s evolution to determine patterns 

  1. The patience

If you’re looking to hit big immediately, then go for gambling. Trading is more suitable for patient people who are perfectly okay to accumulate wealth a little at a time. 

  1. The gain 

Some gamblers believe that the odds can be beaten, but they are wrong. Even if 90% of traders fail to make money, 10% of “winners” is still better than 100% of gambling losers. 

  1. The adversity 

The house always wins in the end because, well, that’s how casinos are making money. On the other hand, the markets don’t care if the investors are making money or not. 

  1. The emotion

While gamblers are often pulled to their doom by raw emotion, traders approach their jobs with cold rationality

All these 7 differences between trading and gambling don’t mean that trading could not be fun: as a matter of fact, learning how to trade by playing virtual money in real market conditions can be very funny, don’t you think? Well, great, because it’s exactly what we do at AdelTrade, the gaming platform for traders! 

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