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Paul Weston wrote:
> Life is a gamble and if you don't believe so, you are in for a rude
> awakening.
>
> Every time you go to the store, you are gambling that you will make it back
> alive.
>
> The only thing we can do in life is to try to stack the odds in our favor.
> That's what professional gamblers do. The more successful ones are better
> at it.
>
> Webster's defines gambling as "to take a risk in order to gain some
> advantange".
>
> If somehow you have managed to eliminate all risk in trading, that is great.
> Otherwise, your are gambling.
>
> Let's have a poll. Who on this list is not a gambler (i.e. a risk taker)?
>
> Regards,
> Paul,
Here are some definitions that I developed.
Gambler - one who engages in a random guessing game with no advantageous
knowledge and zero or a negative advantage in odds. An example would be one who
flips coins, buys lottery tickiets, plays the slots or other games of chance at
a casino.
Speculator - one who bets money or assets based on an educated guess. This fits
many short term traders.
Investor - one who risk money or assets based on a perceived advantage in
knowledge and or odds.
Some examples of investors are the ones who sells bets to the above gamblers,
knowing that they will win over a period of time, i.e. the casinos in Las Vegas,
covered option writers, insurance companies, those who bought Soybeans near $4
last summer (20% under the cost of production) and are still long, etc. They are
not looking to make a killing, just looking to make a living. Those looking to
make a killing will get killed. Those looking to make a living, may make a
killing.
So, having taken a long time to answer your question, I think I am an
investor. I do not think I am a gambler.
Advantageously,
Norman
>
>
> -----Original Message-----
> From: ist@xxxxxx [mailto:ist@xxxxxx]
> Sent: Monday, February 07, 2000 11:56 AM
> To: paulweston@xxxxxxxxxxxxxx
> Subject: Re: [RT] RE: Re: FUTR: Head games.
>
> I feel sorry for you if you are gambling. Trading is a business and if
> treated
> as such can be very profitable. If you are gambling or feel that you are,
> then
> like most gamblers, you will end up a loser. Being profitable in the
> interim,
> doesn't mean that the ultimate fate will not befall you. the professional
> "gambler" doesn't feel that he is gambling. It is his business and he
> treats
> it as such. He knows the odds, probabilities and the other facts of the
> game he
> is playing. The professional in any endeavor doesn't believe that he is
> gambling. From what I have heard the biggest gambles are the restaurant or
> contracting businesses. Good luck and put a buck on the beans for me. Ira.
>
> Paul Weston wrote:
>
> > I went thru some of this myself and basically I focus on 2 things:
> >
> > 1) I perform a service. If it were not for speculators such as myself,
> the
> > markets would lose liquidity and would not work nearly as well.
> >
> > 2) Nobody comes into this game without the knowledge they are a gambler,
> and
> > part of gambling is to risk losing money. In fact, my job is to take your
> > money. Plan and simple.
> >
> > If you don't feel good about the realities of trading, I would suggest
> > looking at another profession. There are plenty to choose from.
> >
> > Regards,
> > Paul
> >
> > -----Original Message-----
> > From: listmanager@xxxxxxxxxxxxxxx [mailto:listmanager@xxxxxxxxxxxxxxx]
> On
> > Behalf Of comdytrd
> > Sent: Sunday, February 06, 2000 6:55 PM
> > To: realtraders@xxxxxxxxxxxxxxx
> > Subject: [RT] Re: FUTR: Head games.
> >
> > Howdy,
> >
> > I've been working on my head lately... Trying to figure out why I even
> care
> > whose money I take on those successful occasions. (They never seem to
> feel
> > guilty when they take mine do they?) So why do I feel hesitance and guilt
> > and how shall I overcome same? Keep it simple please.
> >
> > Also I seem to trade best after a loss that makes me mad. If not, I'm
> much
> > less focused and slower to act.. It's when I must recover a loss that I'm
> > at my best...Is there a technique short of drugs to achieve the focus/
> > intensity that being mad seems to produce?
> >
> > I have begun to counter my perfectionism by remembering to "take the meat
> > out" of a trade and leave the crumbs to others... this seems to prevent
> > those frequent gut wrenching/market reversal events.
> >
> > Much obliged for any input.
> >
> > Michael
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