Leverage trading is nothing but gambling

[Ojima-ojo]

For a while now I have been reading traders' reviews on top exchanges and getting involved in discussions as regards various coins, their performance and market dominance coupled with how much loses have been incurred by traders and what form of trading makes the loss such an amount.


My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

[Ziskinberg]

It’s difficult to compare gambling to trading since gambling mostly relies on luck. We also need to be specific when talking about gambling because different games have different house edges. In casino games, winning in the long run is nearly impossible, making it very different from trading since it's purely luck-based.

A better comparison to trading would be sports betting. Just like in trading, we rely on analysis and predictions rather than pure chance. With proper bankroll management, we can place serious bets and potentially turn a profit, similar to how traders manage risk and invest strategically.

[Hatchy]

You might have to make more research,  .. they both depend on luck, but one is controlled mostly by luck, while tbe other is purely knowledge trading is all about understanding the technical, fundamentals and psychological aspect of the market. In trading, you have to take your time to analyze the market, watch out for economy movers and know how the market would react to them. In gambling, you place your bets and hope that the algorithms plays out for you. Aside sport betting, I don't see any analysis done while gambling..

[Botnake]

Leverage trading would fall into gambling if you are not inclined into trading. However, if you are actually knowledgeable and skillful on the kind of trade you are entering, then it’ll never result into gambling, but leverage trading could even make you potentially more successful and profitable if you only know how to manage your bankroll and apply high risk management on it.

[Strongkored]

I don't do leverage trading so I don't know for sure whether doing leverage trading is the same as gambling which only depends on luck, but in my opinion, trading in any form, whether it's spot or leverage, if done without skills, only using feelings or instincts, then it can be said to be gambling, but if done the other way around, it is certainly not the same as gambling, because traders analyze with the knowledge they have to assess the direction of the market within a certain period of time and that is based on data, not feelings or instincts.

[logfiles]

It's like your conclusion is not based on any facts, and you don't even do so much of trading. If trading is a gamble, then so is every decision you make in life. I have experienced both worlds of trading and gambling, and while both may lead to serious losses... Gambling (betting and all that stuff) is purely based on luck and should be more of an entertainment/leisure thing. Take an example of rolling a die or spinning a slot vs shorting/longing Bitcoin. Do you think they are the same thing? I can risk $1000 to long or short bitcoin, but I can't risk the same amount to make a single spin,   Why do you think so?

[Davidvictorson]

We have different views of what leverage trading is depending on our experiences. It can be likened to gambling but it is not gambling. In gambling there are odds but I'm leverage trading there are no odds. You depend on the market. If we are to compare risk management of leverage trading and gambling, in the former you can use the following ways to reduce your risks, stop-loss orders, hedging, and portfolio diversification but in gambling, once you place a bet is placed, you can't minimize losses mid-game. You can use cash out but this is limited to only sports and not all gambling games.

[Anna1831992]

You are just doing it on your own, so the conclusion you draw is gambling.
Financial companies are supposed to be a win-win situation for teamwork (composed of analysts, appraisers, researchers, algorithms/designers, etc.).
But some people see other companies’ last step of “investment” and then easily make a lot of money, so they think they can do it, and then teach others to do it together, and finally it turns into, see, this is gambling

[notocactus]

I don't do leverage trading so I don't know for sure whether doing leverage trading is the same as gambling which only depends on luck, but in my opinion, trading in any form, whether it's spot or leverage, if done without skills, only using feelings or instincts, then it can be said to be gambling, but if done the other way around, it is certainly not the same as gambling, because traders analyze with the knowledge they have to assess the direction of the market within a certain period of time and that is based on data, not feelings or instincts.

Gambling is gambling and depends on probability and luckiness, but trading is more like gambling if a trading position is opened arbitrarily without knowledge, analysis and more important without prevention to defend trading capital. I mean if a trader opens a trading position (either in Spot, leverage, futures trading), without any weapon to defend initital  trading capital like Stop loss order, Stop limit order, it's very similar to gambling.

Because that trader only think of profit and believe that any opened trading position will result in profit later. It's stupid and risky practice.

• One of the best weapons in trading.

[LogitechMouse]

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My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

I will try to share my opinion based on what you said.

Trading isn't gambling, and it will only turn into gambling if you don't know anything. If you're just making your decision based on your emotions, and not on a strategy, then it at least is close to gambling. As for the market goes against your prediction, you will be liquidated, that's why there's a thing called STOP-LOSS so that when your prediction is wrong, at least the amount of money that you will lose will be lower and you will not be liquidated.

As for trading depends on luck, it plays a role, but I don't think that winning in trading is solely based on pure luck. If that's the case then why there are many people that are still joining courses? Why there are people that constantly learning how to trade properly? Winning in gambling is mostly based on luck, and a bit of strategy as well. In trading, winning is mostly based on your strategy, and a bit of luck as well. I respect your opinion, but trading equal to gambling.

[crwth]

That’s how people approach trading because they see many people with high leverage and high-profit sharing. A lot of people want that, but they don’t understand how leverage trading works and end up liquidating their money. It’s just so much of a problem if you don’t know what you are doing at the current moment.

I am not saying that all the people who trade with leverage are not knowledgeable, but traders make an educated guess based on their analysis, but it’s not 100%.

[OcTradism]

Trading isn't gambling, and it will only turn into gambling if you don't know anything. If you're just making your decision based on your emotions, and not on a strategy, then it at least is close to gambling. As for the market goes against your prediction, you will be liquidated, that's why there's a thing called STOP-LOSS so that when your prediction is wrong, at least the amount of money that you will lose will be lower and you will not be liquidated.

Gambling is gambling but trading is not gambling, investment is not gambling only if you have good practice.

If you have bad knowledge or zero knowledge, and consequently very bad practice, you will turn investing to gambling and trading to gambling. It is not automatically fact like "Investment is not gambling, trading is not gambling", you decide what it is for you through your practice and own actions.

That’s how people approach trading because they see many people with high leverage and high-profit sharing. A lot of people want that, but they don’t understand how leverage trading works and end up liquidating their money. It’s just so much of a problem if you don’t know what you are doing at the current moment.

I am not saying that all the people who trade with leverage are not knowledgeable, but traders make an educated guess based on their analysis, but it’s not 100%.

People only share one or two wins with leverage trading or futures trading, but they hide their losses and don't share their long term net profit with leverage or futures trading. Very few traders can have long term positive and profitable ROI if they are active traders especially with leverage trading or futures trading.

Like today, there are more than $200M liquidations in the market only for Bitcoin positions with most of them are from Long positions.
https://www.coinglass.com/pro/futures/Liquidations

[jcojci]

If you don't research before you trade, you are gamble with your money and want to make a profit. But if you don't have skill in analyze the market, that will be difficult for you to enter and exit trading. You will not get the right moment to buy and sell but may lose your money in trading.

It is right that our money will liquidated if the market change the direction. But with skill in analyze the market, you will see when you need to close your trading. You will not take a big risk to let that open while the market can move to any direction.

[Oshosondy]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

Leverage trading is different from gambling. They have different approaches. Although their risks are like the same, especially for beginners. But when someone have used high leverage and his money got liquidated, the person will realized not to use more than 1x leverage to avoid liquidation next time. For many altcoins it is good to use even lower leverage like 0.2x or lower.

Also very important to trade with the amount of money that you can afford to lose.

[X-ray]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

pretty much everything based on luck in this world, you can be trading spot, but there's always chance market dumped so hard you lose 90% of your value, just like most of altcoins these days.

in leverage, you get what you ask for, leveraged position but also high fee and funding rate to make it up, I think it's okay, it only gets unfair when market is heavily manipulated but so far leveraged trade seems pretty fine to me.
if you are good at managing money in the first place, you won't get blinded by the high profit offered by the high leverage and stay with spot instead.

[Finestream]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

Leverage trading is different from gambling. They have different approaches. Although their risks are like the same, especially for beginners. But when someone have used high leverage and his money got liquidated, the person will realized not to use more than 1x leverage to avoid liquidation next time. For many altcoins it is good to use even lower leverage like 0.2x or lower.

Also very important to trade with the amount of money that you can afford to lose.

Gambling and leverage trading may have similar risks but we all know the outcomes can be different most especially if you are an experienced trader that knows already when is the best entry and exit in the market. While gambling on the other hand, regardless if you are an experienced or not, losses are inevitable especially if you are gambling with casino games.

However, leverage trading can also be dangerous. But come to think of it, it can be helpful if the market movement is align with your predictions and expectations and thus, giving you higher potential returns. But trading without leverage, of course the risks could be lower but it comes with lower profits as well, so if one aims for bigger profits, taking leverage trading could somehow be useful as long as you know how leverage works in trading.

[Futurexxx]

You might have to make more research,  .. they both depend on luck, but one is controlled mostly by luck, while tbe other is purely knowledge trading is all about understanding the technical, fundamentals and psychological aspect of the market. In trading, you have to take your time to analyze the market, watch out for economy movers and know how the market would react to them. In gambling, you place your bets and hope that the algorithms plays out for you. Aside sport betting, I don't see any analysis done while gambling..

You are right about this, and I think that we share the same sentiment here, trading can never be gambling because your success and failures is determined by how good your analysis are, or how good were you in controlling your emotions, while in gambling is mostly all about luck, but when it comes to leverage trading, is not a bad thing trading with leverage, what is bad is using too much high leverage, and most of these traders that uses higher leverage are taking a calculated risk, and it mostly scalpers that does that the most because they are just looking out for a small movement out of the market to make something big out if it, but in essence of what am trying to say is that leverage trading isn't gambling and it isn't bad, it's just the way it's being used that determine the risk and how bad it might be, but if it is used right, then it's good.

[tvplus006]

...My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

You should understand that all liquidated positions were the result of a violation of the risk management strategy. Ignoring such elementary actions as setting a stop loss leads to exactly such consequences. That's the difference between trading and gambling, where you can only stop when you have empty pockets.

[Z_MBFM]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

In future trading/ leverage trading can make you hero to zero and also zero to hero. things that happen too fast and do not obey the laws of nature are gambling.  Anything can happen in a moment in futures trading or leveraged trading. You can lose your entire capital and get profit many times your capital. All this happens very quickly. As a general rule a person can become rich by earning money through a lot of hard work and it takes a long time. But gambling, leveraged trading and lotteries can drastically change a person's financial status in an instant. so it can definitely be considered gambling. here everything is depended how potential prediction you can make.

[Zadicar]

My finding points to one truth about leverage trading in crypto trading and it is no difference with gambling since whatever position you hold when the market goes against your prediction you get your money liquidated, so tell me what difference it is with gambling where you also depend on luck the win.

In future trading/ leverage trading can make you hero to zero and also zero to hero. things that happen too fast and do not obey the laws of nature are gambling.  Anything can happen in a moment in futures trading or leveraged trading. You can lose your entire capital and get profit many times your capital. All this happens very quickly. As a general rule a person can become rich by earning money through a lot of hard work and it takes a long time. But gambling, leveraged trading and lotteries can drastically change a person's financial status in an instant. so it can definitely be considered gambling. here everything is depended how potential prediction you can make.

When dealing up with futures then make it sure that you should really be that having the idea about on dealing up with spots trading because the wrong thing or decisions made out by someone is that it do becomes gambling at the moment that you dont know on what you are doing in the first place. Leverage trading could really be making you from zero to hero vice versa and this is one of the most common reason on why some traders will really be that looking up directly on dealing up with it without having thinking about on the imposed risks. On the moment or time that they had been liquidated then they would really be starting up to think that this is gambling and you would be spreading it up that it is really just that the same. No, its not it is really just that you would really be needing up that proper awareness on how trading works whether spot or leverage. They do only differs about on the leverage and the risks level.