/biz/ - Business & Finance

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Gambling you are more likely to lose
Trading is a zero sum game

>>23633923
>zero sum
globally, not for me

>>23633858
Real deal Investors probably only really invest a few times a year, they lurk for ages and then when something they think is 100% gonna moon they go all in (like some bullshit profit arbitrage or just stupidly undervalued assets). Best way to think of it as a market exploit that YOU KNOW WILL WORK (very important), but requires an "investment" to initiate the process of making profit. Gamblers on the other hand are completely and utterly clueless to what contributes to their gains or losses, they live in a delusional world where everything follows a pattern that "they" only can observe.
Note that the most successful investors are usually well connected and incredibly social, those connections are key to getting news early and making the right market moves on time. The elite have their own herd mentality cut off from the "main street workers" (normies), its still just as foolish because its human, but they're the ones with the most amount capital/liquidity to actual act on their theories and speculation. Unlike the rest of the normans who spend/gamble away their assets and have 0% influence on the market.

thats just my opinion based of years of lurking tho

>>23633858
Gambling involves driving to the casino and playing cards,
trading involves going on line and going "ooohhhh aaaahhhhh. Funny lines!" reading the data, and making an educated guess.

>>23634122

True I took a break after losing $70k early Sept on shitcoins. Kept up on some tokens.
Bought 5m HEX a few weeks ago as I seen the slow uptrend forming and staked until BPD.

Now I'm looking at $100k minimum in 1 month when I unlock.

>>23634168
I'm starting to feel like there's less and less of a difference between the two. I've had a good year, but now I'm sitting on stocks that are just stagnating and not going anywhere. Most dropped 3-6% today.
And now I'm a little bit hooked on watching them climb upward. I had a few years now of good, solid growth, and I can't ever go back to just making normal money. Surely there's a pick I can make that's going to make me 40-60% in a year? I've seen dozens of them fly by me this year. So why can't I pick the next one?
The longer I've been digging the more I realize there are things beyond my capacity to understand or control. I put $10k in RUN two years ago as a 'solid pick' I found on plebbit. I just ignored it for 2 years as it just lingered at $15.
Then one day I checked it in july and it was all of a sudden $45, $50, $70, $80. I chickened out at $75 and sold, and now it's dropped down to $50 again.
I'm fucking hooked man. All of a sudden I'm sitting on a heap of cash that I thought was a 'long run' bet. But now what? How do I duplicate those results? I picked NIO from all the research I've read. But I'll be honest, I know I'm chasing the hype more than anything else. No matter how much I believe what I'm hearing, I'm still just trusting 3rd parties hooting and hollering about some stock.
I'm a gambler. I have to just admit that.

>>23634122
This is somewhat correct, but the risk of the trade determines the amount they go in. I know a guy doing options and he makes anywhere between 100%-200% APR by making 3-8 trades a year. He is basically selling news but at the same time he would spend the rest of the year lurking and just doings hours and hours of DD everyday.

>>23634319
A good trader would know that every trade/investment is a gamble, there is no such thing as a safe trade.

You should always allocate a portion of your fund towards things like options, futures, and shitcoins after doing your DD and making sure you are aping in an educated manner. High risk, high reward. When you put your money into stocks and established companies, it's all just about selling the news, it's either up or down so make ur bet count.

You have to know your competition since it's a zero sum game, you literally have to live inside people's head while being one step ahead. Know what markets people are likely to flood into.

You can only pocket people's money when you know the market you are in better than other people that are also here.

>>23633858
Day trading is gambling, hedging on macro trends is where it's at

>>23634615
Thanks anon. I've just got the 'big money' bug and I gotta shake it. I've spent years just sitting at 5-6% profits. I was happy to sit on SunRun for 2 years until it blew up. Now I just have to shake my visions of 400% returns and go back to being rational.

>>23634233
>lost 70k on shitcoins
how you deal with it is just nuts for me to imagine lol, congratz on the 100k win tho.

>>23634441
very true, forgot to talk about risk but its definitely a huge part of the lurking process

>>23634683
np man, just remember making normal money (wagecuck) keeps you busy and your mind off the money. Also it gives you enough financial stability for you to overstep the fear caused by loss aversion. Both of these above gives you an insane mental edge over people here who are just yolo'ing their savings.

>The longer I've been digging the more I realize there are things beyond my capacity to understand or control.
Believe it or not, the best trader I know, who is way beyond "made it" level of wealth, believes that when you become much more experienced and well-versed than your competition, you will start to become your own enemy. Overthinking/hesitation is caused by the burden of knowledge,

dw, we're all gonna make it

trading is when you buy something for cheap, then you sell what you bought for expensive to gain profit.

gambling is when you buy something for the chance of the item to moon.

>Is it the same?
No. Gambling happens when there are too much risks in your decision making. To reduce the risks, you need to gather more information regarding the item you want to trade.

The simplest way to reduce the risk is to track the capital flow in and out of the item. If the item is cheap, but lots of capital going into the item, surely somebody is accumulating the item. Sooner or later when the other participants of the market found out about the accumulation activity, the participants will rush to buy the item causing the item's price to jump as the competition to get the item begins. Same goes to selling phase.

>When will trading become gambling?
When you have zero knowledge about the things you trade or what trading really is, and you just simply buy/sell as you like in the hopes of something will moon/dump without having a reason why.

t. Trader

>>23633923
trading is a negative sum game, as the house always takes a cut unless you got billions to be the market maker. but being delta neutral market making is quant level autism