Trading or Gambling ?

[Maverick]

Unlike Poker or Roulette, I like to think I am gambling with an edge ... I still use and listen to my indicators

THE biggest difference between trading and gambling is I do not have to pay ANY tax on my winnings

NOTE ... Spreadbetting is NOT available worldwide ... Only in select countries like the UK

Also, a trader is very edgy and wary - only using a small percentage of his available funds - a gambler on the other hand will bet the absolute maximum his free margin will allow ... Least I do

 

[ChelseaR]

Gambling is just risking your money and hoping a wheel supports you in getting profit. On the other hand, trading is done with proper strategies.

 

[David79]

Gambling is just risking your money and hoping a wheel supports you in getting profit. On the other hand, trading is done with proper strategies.

I agree - Trading is all about planning & strategy. What's your strategy these day?

 

[Tradr]

It's simple really:

Gambling is taking the bet knowing the odds are against you
Trading is making an educated decision based on statistics moving probabilities in your favour

 

[Maverick]

Respectfully ... Spreadbetting is not just a case of flipping a coin Buy or Sell ... We look at the charts in exactly the same way a trader does

You probably think you are being smart by not paying taxes on your profit ... Thats what Al Capone thought

 

[Mase1965]

I have never traded the Forex market with lots and living in the UK have Spreadbet from day one - Why pay taxes if you don't have to - Thank you Gordon Brown

If this means I am a Gambler and NOT a Trader - so be it - But I like to think of it as educated gambling with all the indicators now available.

At the outset I used to believe that Trading and Spreadbetting were the same just GBP instead of Lots and it was some time before I realised they are NOT the same - similar yes BUT different.

Trading is all about working with risk . . . Gambling is Win or Lose and not thinking about What if.

It's about percentages . . . Big Wins and Small Losses and compounding your bets

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” ― Albert Einstein

You can open a Spreadbetting account with as little as £20 and place a £0.10 bet Then once your balance has reached £40 then you can place a £0.20 bet . . . £60 = £0.30 etc etc and thats just on 0.5% of the balance. Don't Be Greedy - The #1 reason why so many fail !!!

Why am I not a Billionaire . . . good question . . . unfortunately I don't obey my own rules

But I'm getting there

The maximum bet size is normally £100 (subject to available margin) multiplied by 20 pips equals 2 grand in your pocket TAX FREE

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Don't think of a £100 / pip being a lot of money . . . it's no different to £1.00 / pip . . . 1%

The total Profit and Drawings shown are over a 12 month period

At the time of writing I have just watched the DAX move 95 points - H'mmm

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It’s interesting to read your perspective on trading and spread betting! I agree with your point about the similarities between the two, but I think the key difference is indeed how risk is managed. As you said, trading is about working with risk, and understanding that is what sets it apart from gambling. The idea of compounding your bets gradually with small, controlled steps is definitely a smart strategy, especially when working with a small account balance.


Your comment about not being a billionaire yet but still getting there is something many traders can relate to. The journey is often about discipline, learning from mistakes, and refining your strategy over time. The concept of avoiding greed is crucial—often it’s the small, consistent gains that lead to long-term success rather than chasing big wins.


And I agree, the idea of "£100/pip" isn’t as daunting as it seems if you think of it in relative terms, like 1% of your balance. It’s all about scaling gradually without over-leveraging, which you’ve highlighted well.


Best of luck as you continue working towards your goals! Stay disciplined, and you’ll be moving in the right direction.