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« Why not wait? | Main | The Old Days »

July 04, 2006

Comments

casino bonus list

The stock market is definitely a gamble. i am not sure why you are saying this.

Bill aka NO DooDahs!

One **possible** delineation:

If the game is structured in such a way that the "player" cannot move the odds in their favor, even slightly, then it is gambling.

If the "player" can potentially devise strategies that move the odds in their favor, whether or not the player actually does this, then it is speculation.

For what it's worth, this delineation would put blackjack, and all competitive card games against non-house competitors, in the "speculation" camp. I'm not endorsing this delineation, and depending on my mood, I'm sometimes inclined to call trading "gambling," but regardless of the label, it **IS** an important delineation.

oldprof

Joe -

No money management system can turn a method that has a losing expectancy into a winner.

A poor money management system can turn even the best plan into a loser.

Your question is excellent, and frequently misunderstood by both investors and gamblers.

thanks,

Jeff

Joe B

positive progression when winning. win streaks and losing streaks. can it buck the systems?

Jeff

Anonymous --

(and others who may have this same impression)

The distinction I am explaining here involves the long-run expectancy and money management. Suppose you have a proposition (a stock or a biased coin) that pays an even-money bet 55% of the time. If you bet everything on one event, that is certainly a gamble. If you made a lot of smaller "bets", it is not.

anonymous

You have an odd definition of "gamble".

http://www.thefreedictionary.com/gambling

gam·ble (gmbl)
v. gam·bled, gam·bling, gam·bles
v.intr.
1.
a. To bet on an uncertain outcome, as of a contest.
b. To play a game of chance for stakes.

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