Many people think that trading, whether in cryptocurrencies or other assets, is a form of gambling, like going to a casino. However, this comparison is flawed and simplistic as it ignores the fundamental differences between trading and gaming. Let's explore some of these differences from a psychological and philosophical perspective.
One of the main differences between trading and gaming is that trading requires prior knowledge and constant analysis of markets, trends, indicators, risks and opportunities. Trading is not based on luck or chance, but on the ability to interpret available information and make rational and strategic decisions.
The game, on the other hand, is based on pure randomness and the hope of winning without having any control over the outcome. Casino games have a mathematical edge in favor of the house, meaning that in the long run, players will always lose more than they win. Players cannot influence the outcome of games with their knowledge or skill, but instead depend on external and unpredictable factors.
Another difference between trading and gambling is that trading involves rigorous discipline and risk management. Successful traders have a defined trading plan, with clear objectives, entry and exit rules, loss and profit limits, and a system for monitoring and evaluating their operations. Traders also take into account their risk profile, their available capital, their time horizon and their tolerance for losses.
Gambling, on the other hand, involves a lack of discipline and excessive exposure to risk. Players usually act on impulses, emotions or intuitions, without having a plan or established criteria. Gamblers also tend to overbet, chase their losses, or become overconfident about their winnings, leading them to risk more than they can afford to lose.
Another difference between trading and gambling is that trading seeks to create long-term value, while gambling seeks immediate gratification. Trading is an activity that requires patience, perseverance and adaptation to change. Traders understand that markets are dynamic and complex, and that there are no guarantees or certainties. Traders also know that success is not measured by a single trade, but by overall performance over time.
Gambling, on the other hand, seeks to obtain instant pleasure, regardless of future consequences. Gaming is an activity that generates addiction, stress and frustration. Players are carried away by the illusion of winning a lot of money in a short time, without considering the probabilities or associated costs. Players also become obsessed with the outcome of each game, without taking into account their overall performance.
As we have seen, these are some of the characteristics of why trading and gambling are very different activities, both from a psychological and philosophical point of view. Trading requires knowledge and analysis, involves discipline and risk management, and seeks to create long-term value. Gambling is based on randomness and hope, involves a lack of discipline and excessive exposure to risk, and seeks immediate gratification.
Therefore, it is not correct to say that trading is a form of gambling, like going to a casino. Trading is a serious, professional and responsible activity, which requires education, experience and skill. Gambling is a playful, recreational and irresponsible activity, which generates dependency, losses and regret.
PS: I want to clarify that it is not my intention to offend those who dedicate themselves to this activity, I know that there are many players who enjoy gambling responsibly and who do not have problems with compulsive gambling. If it is of any use to you, I recommend that you see the game as entertainment, but under no circumstances as a way of life. It is important to play responsibly and be aware of the risks involved. If any person has felt insulted, humiliated, mocked, annoyed, resentful, disgusted, angry, etc. (😅 uff 😅) because of what I say in the article, I apologize, it was not my intention. I appreciate your understanding and remind you, as the saying goes, "Gaming is good business, if you own the casino".
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