Leverage trading is nothing but gambling

[Phoenixtrader]

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.

This is actually an insult to professional traders you know. Trading is a skill that needs to be mastered and that's why most people are not precise with it.. and you don't depend on luck, they're factors to check for which I can't explain to you at the moment .but dyor.

This is a recent trade I took yesterday..it was scalp and I knew the exact entry end exit using demand a supply zones on LTF

[|MINER|]

You have a valid point. However, I can confirm that if someone is only spot trading and focuses on buying bitcoin or any token they have conviction in whenever the price goes down or there's buying opportunities, it isn't gambling—it's called taking risks on high conviction play.

You also have valid point. Even if someone do bitcoin investment in spot trading even if the market goes to the down and if the trader can hold until the recover he might not have face the losses and also it shouldn't be call as gambling,
But the point is those person who will have zero knowledge about the trading they won't able to control their self for the FUD and they might also be sell? And in this case it also might be like the gambling. We also shouldn't forget we also taking the risk on gambling also.

[Awaklara]

Trading crypto or any volitile market is always going to be considered gambling.  All it takes is one green or red candle to get margin called in this game.  Dont get me wrong, people can make some serious money and quick but the large majority of people end up losing money trying to margin trade (gamble).

Why there are so many people that thinks that trading in crypto is considered as gambling?

Sure it can be if you don't know what you're doing and you're just clicking "Buy Long" or "Buy Short" button out there without any proper strategy at all. This is why there are many successful traders out there because they have a system that they follow, and that makes them profitable. Trading can only be considered as gambling if you don't have a strategy, if you don't have a plan, and if you're entering a position without any proper reason at all. Yes, majority of traders are losing money and that's because they don't have a plan that works for them.

Can I ask a question. What about those expert crypto traders out there that are making huge bucks. Do you consider them as gamblers since they're trading in the crypto market despite having a working strategy?

Those who usually mention trading as gambling are usually people who learn or have traded but never get or rarely get profit from the trades they make. In the learning process where beginners in trading tend to open trading positions based on their estimates or instincts rather than based on the strategy applied. They trade relying on their luck with price movement predictions rather than analysis. So the one who gambles with trading is the people, not the trade that is considered gambling.

[nelson4lov]

~Snipped

You also have valid point. Even if someone do bitcoin investment in spot trading even if the market goes to the down and if the trader can hold until the recover he might not have face the losses and also it shouldn't be call as gambling,
But the point is those person who will have zero knowledge about the trading they won't able to control their self for the FUD and they might also be sell? And in this case it also might be like the gambling. We also shouldn't forget we also taking the risk on gambling also.

About that, I don't think it counts. Not all investment will go well and if you feel the trade or investment is turning against and will likely continue to do so, then you sell. It's not gambling. It's called "cutting your losses". Even professional traders do that too. Imo, knowing when to cut losses and stop the bleeding is a skill not directly linked to gambling—although it bears similarities with "cashout" feature kn sports betting but they're not the same—at least, in my opinion.

[LogitechMouse]

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Those who usually mention trading as gambling are usually people who learn or have traded but never get or rarely get profit from the trades they make. In the learning process where beginners in trading tend to open trading positions based on their estimates or instincts rather than based on the strategy applied. They trade relying on their luck with price movement predictions rather than analysis. So the one who gambles with trading is the people, not the trade that is considered gambling.

Or maybe those who lost significant amount money on trading that's why they say that trading is considered as gambling.
At the end of the day, it's all about CALCULATED RISKS.

I'm one of those beginners out there that relies mostly on luck when I'm starting with trading. Some might not agree, but it took me more than 2 years (or even longer) after getting a strategy that I think works for me. Right now, I'm still using the same strategy that made me profitable for the past 3 weeks, and it's looking good. Those who think that trading = gambling are those who relies too much on their luck that they think that if gambling mostly relies on luck in order to win, so is trading, but that's not how trading works. There's no stop-loss in gambling. Yes, there's a take profit though (which is the cash out feature), but if you know what you're doing in trading, you will always, always end up making profit in the long run.

[Bushdark]

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.

This is actually an insult to professional traders you know. Trading is a skill that needs to be mastered and that's why most people are not precise with it.. and you don't depend on luck, they're factors to check for which I can't explain to you at the moment .but dyor.

This is a recent trade I took yesterday..it was scalp and I knew the exact entry end exit using demand a supply zones on LTF

Once a trader knows how to leverage very well without adding greed, he would never have a problem with leveraging.
It's only the newbie's that want to make huge profits in the market that would go and leverage wrongly because they want to have huge profits from the market. Trading is all about being disciplined and knowing what you want to achieve in the market. We should be always prepared to make money in the market by adhering to instructions and advice that would be helpful in a long wrong as a trader.

[Natalim]

Leverage trading is extremely risky, that’s why beginners should always avoid it at all cost. However, same applies even for old traders. But, this may serve as a real challenge for old and skillful traders, because the more they are inclined to the different tricks in trading, the bigger the possibility that they will gain a maximum reward after making a successful trade.

But of course, anyone who wish to enter leverage trading should always bear the high losses, because just like gambling, leverage trading is more often linked to bigger losses compared to higher gains.

[Macabury]

If it was about Leverage trading having higher risk i would have concurred but to akin it to gambling is one perspective I don't think I will buy into Traders might choose to gamble through leverage trading maybe because they want to make much profit and return the capital but end up applying selfish strategies that won't take up much moves. Greed has always been the killer of most traders and so the label each tactics that doesn't work out as planned gambling.

[dansus021]

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.

In my opinion, leverage trading can be gambling if you just blindly enter without any analysis and yes use of high leverage can make people suffer made people basically rich and poor in short amount of time

Just do quick google search and GOogle AI summarize the article from me https://www.google.com/search?q=is+leverage+trading+gambling&oq=is+leverage+trading+gambling

Leverage trading can resemble gambling due to the high risk and potential for rapid losses, but it's not inherently gambling as it involves market analysis and strategy, unlike pure chance-based activities.
Here's a more detailed explanation:
Similarities to Gambling:
High Risk: Leverage trading allows traders to control a larger position with a smaller amount of capital, which can lead to significant profits but also substantial losses if the trade goes against the trader. This high-risk aspect is similar to gambling, where the potential for large gains is accompanied by the risk of losing a significant amount of money.
Potential for Rapid Losses: Leverage can amplify both profits and losses, meaning a small price movement can wipe out a trader's entire position. This rapid loss potential is another characteristic that aligns with gambling.
Psychological Factors: The pursuit of quick gains and the potential for large losses can lead to impulsive decisions and emotional trading, similar to the behaviors seen in gamblers.
Differences from Gambling:
Market Analysis and Strategy: Unlike pure gambling, leverage trading involves analyzing market trends, identifying potential opportunities, and developing trading strategies based on that analysis.
Control and Decision-Making: Traders have control over their positions, entry and exit points, and risk management strategies, unlike gamblers who are at the mercy of chance.
Time Factor: While gambling is a time-bound event, investing and trading can be a long-term strategy, where investors aim to profit from the growth of their assets over time.

[GbitG]

_snip_

In my opinion, leverage trading can be gambling if you just blindly enter without any analysis and yes use of high leverage can make people suffer made people basically rich and poor in short amount of time

Yeah, definitely, if someone blindly jumps in for trading without any fair probe then indeed he will grab nothing else rather than lose. I often try to tell people that nothing is done without research. Trading is a vast field in which you have to monitor many strokes deeply and if you intervene without observation, you can drain your money and lose.

Trading is much more risky and when you maximize leverage without knowing what the market sentiment is, is it a good time for me to take a trade or not? So, if we call this trader a gambler, there will be no problem. Because he is taking trades without observation, only on luck basis.  So, of course, his trade will be likened to gambling.

So that's why everybody needs to learn all these aspects (TA, FA, Market sentiment, Dynamic and trend etc) before taking a trade.

[Japinat]

Whatever the type of trading you will use, if you don't have the right knowledge and skills that fit such a thing, it ends up relying on luck. Many traders fail because they force themselves to believe that they can do it when their knowledge is empty or just small. And just like several other traders, they only lose their money. Therefore, if we want to reach our goal and become successful in this field. Then we also have to find a way to increase our level of understanding, as this is our ticket to success.

[Renampun]

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.

If you can take a good position and also use in-depth fundamental analysis when making a decision to place a leveraged trade and set a stop loss, then you are not gambling at all, but if you are careless in taking a position, do not pay attention to fundamental analysis, then you are gambling on the lottery instead of leveraging trading.

I see this leverage trading can actually provide big profits in a short time if utilized properly, for example, some time ago there was someone who put btc down 40x with a capital of $ 500 million and he stopped some time later but he had already made $ 9 million, that is truly a fantastic value and only a few people have that much money and that much courage.

[UltraexTrader]

Leverage trading is extremely risky if you got no discipline and proper banrkroll management.

[Ojima-ojo]

Whatever the type of trading you will use, if you don't have the right knowledge and skills that fit such a thing, it ends up relying on luck. Many traders fail because they force themselves to believe that they can do it when their knowledge is empty or just small. And just like several other traders, they only lose their money. Therefore, if we want to reach our goal and become successful in this field. Then we also have to find a way to increase our level of understanding, as this is our ticket to success.

If you are trading spot, your risk of losing is very low, compare to when trading leverage, the risk are different, spot traders are more lime normal bitcoin investors, and the only time you lose is when you decide to open a sell order that is Below your bought filled order.


As long as you don't sell your asset in spot trading, it will only take time before your recover from whatever loses that you may have incurred, unlike in leverage trading, where you can hit your liquidation price at any given decline below your liquidation zone when and if that happens, you lose 100%.

[Distinctin]

Yes, it could still fall into gambling, yet there are still traders who wish to leverage their trading so they can maximize their returns, but this is only for those who have high experience and well-skilled traders in the market. However, let’s just be realistic here, trading won’t give us guaranteed profits in the long run, even if you mastered trading. Get a stable job first and trade only for your side hustle, that way you are minimizing the risk within trading.

[Sanitough]

Whatever the type of trading you will use, if you don't have the right knowledge and skills that fit such a thing, it ends up relying on luck. Many traders fail because they force themselves to believe that they can do it when their knowledge is empty or just small. And just like several other traders, they only lose their money. Therefore, if we want to reach our goal and become successful in this field. Then we also have to find a way to increase our level of understanding, as this is our ticket to success.

Also, if you are trading under the pressure of greed, you will never be successful on your trading career, even if you say you are not risking with leverage trading. However, I still believe trading with leverage create an edge for other traders, because we won’t be seeing or hearing about leverage traders if they aren’t benefiting at all. It just proves that it work for them, but for majority it isn’t.

[Odusko]

Why do you ops think and referred to trading as gambling, the two of them are widely different in practice and reality, while you lose both your profits and capital in gambling, trading on the other hand have more stability in their reality, stability in the sense that, some assets that are traded are my stable and less volatile and at that the traders tend to make profit or just wait for the price to recover,. Smart traders don't lose money, rather they could lose time, since when the trade goes against your prediction, all that you need to do is to wait sometimes before it recovers and you regain all your investment.

[milewilda]

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.

This is actually an insult to professional traders you know. Trading is a skill that needs to be mastered and that's why most people are not precise with it.. and you don't depend on luck, they're factors to check for which I can't explain to you at the moment .but dyor.

This is a recent trade I took yesterday..it was scalp and I knew the exact entry end exit using demand a supply zones on LTF

Once a trader knows how to leverage very well without adding greed, he would never have a problem with leveraging.
It's only the newbie's that want to make huge profits in the market that would go and leverage wrongly because they want to have huge profits from the market. Trading is all about being disciplined and knowing what you want to achieve in the market. We should be always prepared to make money in the market by adhering to instructions and advice that would be helpful in a long wrong as a trader.

Anything that goes beyond 10x leverage is gambling. I do even get surprised that there are those people who do get 100x or even that max 125x on which this is that pure gambling. Even lets say that you do have that huge trading capital but once the price do made out some sharp decline or pump then it will totally blown up your trading capital in a blink of an eye. Well, each one of us do have those decisions and risks management and thats why there are ones who do are that conservative and there are ones who are that treating it as a gambling on which they would be thinking about if they do made out such huge leverage and once the price do go favor into their choice then that would be that a very huge amount of profits. Literally yes, but always think off about the probabilities on having that another side which is losing that huge amount of money too. Trading is never been something can be considered as gambling not until you do made out positions on which you dont put up any analysis into it. Instead on making money out of it you do rather having that bigger chance of losing just because you didnt plan well into the actions that you are gonna supposed to do. Just like on what i have said that anything that speaks about leverage then it will be that totally a gamble if you are going above 10x based up on experience. If you are willing to blow up your trading capital then its your choice or decision to make but make it sure that you wont be having any regret at the moment that it would blow your account. Regrets do always happen in the end and not on the beginning. Trading skills is something that you do need up to learn in a long time period and experiencing tons of trials and errors along the way. It is just that too impossible that you cant be able to determine in between gambling and trading on which it do need up that serious approach. It all matters about choices and seeing those probable results that it could give out neither positive or negative along the way. When dealing up with trading then it do need up that seriousness and proper planning. Always made out back up plans because losing trades are inevitable.

[DanWalker]

Why do you ops think and referred to trading as gambling, the two of them are widely different in practice and reality, while you lose both your profits and capital in gambling, trading on the other hand have more stability in their reality, stability in the sense that, some assets that are traded are my stable and less volatile and at that the traders tend to make profit or just wait for the price to recover,. Smart traders don't lose money, rather they could lose time, since when the trade goes against your prediction, all that you need to do is to wait sometimes before it recovers and you regain all your investment.

What you are talking about is spot trading and it is not gambling, but OP and everyone is talking about leverage trading, especially high leverage and it is no different than gambling.
Also, even if you are a professional trader, can you guarantee absolute victory based on your knowledge and skills alone, or do you still need to rely on a little luck?

There is one thing in common between trading and gambling, that is no matter how good we are, in the end, to win, we still need luck. So trading and gambling may be different but they also have many similarities.

[shinratensei_]

Anything that goes beyond 10x leverage is gambling. I do even get surprised that there are those people who do get 100x or even that max 125x on which this is that pure gambling.

Honestly just the leverage number doesn't reflect the risk involved in a trade, you can be using 500x leverage and still pretty safe from massive liquidation if you just used $1 for your margin.
Many people did this, like using $2-3 when they have few grands in their account for future trade with 100x leverage, worst case scenario if they set proper TP/SL is that they trigerred their SL and probably in -200% ROI and lose $4 with $2 margin.

It's all about how you set up the trade.