Morality of trading: Gambling or business?

CreditViolet · #11 3rd February 2008, 12:06 PM

Quote:

Originally Posted by bhaveshdj

Creditviolet, gambling = jua or betting, which our parents have taught us is v bad.
business = buying something and selling it at higher rate.

I wasnt asking what your parents thought of it or a synonym, asked you what both the activities meant. Anyways here is a dictionary definition which might clear up things

Gambling -
1.The act of playing for stakes in the hope of winning (including the payment of a price for a chance to win a prize)
2.Preoccupied with the pursuit of pleasure and especially games of chance
3.Take a risk in the hope of a favourable outcome

Business - A commercial or industrial enterprise and the people who constitute it

uasish · #12 3rd February 2008, 02:26 PM

So clear compartmentalize-ation in the brain is required,as Jesse is pointing to ,2 sea different things.

manafa · #13 4th February 2008, 05:55 AM

Real interesting subject. Here are my thoughts -

Investing is all about risk versus reward. Pretty much the same as business. In a business you are making an investment in the hope of selling something at a fair price and as a means of providingreal service to the community. When you are investing in a company one is providing service to the company by buying a stake in the form of shares and providing the necessary value, regardless of how small it is.

Gambling is something where you take a chance with your money and there is no concept of service involved.

A business/investing has social rules behind it and civic laws dictate demand and supply.

Gambling has no civic rules behind it and mostly criminal laws dictate the activity.

In investment/business goods can be exchanged or traded for other things

There is no exchange or fair trade with gambling.

JMHO

Happy trading

bhaveshdj · #14 4th February 2008, 12:24 PM

So is f&o gambling or business? We are not investing in any company, merely betting whether price will go up or down. So maybe its gambling, but I will prefer to use the word speculation as its not merely cointoss but involves research and logic.

amarnath · #15 4th February 2008, 01:59 PM

Speculation on any form is a sort of gambling

kkseal · #16 4th February 2008, 02:42 PM

Two important differences that comes to mind

1) There's scope to load the odds in your favour (gambling is always 50:50 - pure chance)
2) There's scope to manage your risks (unlike gambling).

Any form of business is informed speculation. A businessman too has no certainty only probabilities to go by (& mind you he does not have the benefit of SLs or hedging - particularly so if his capital is limited and he has all his eggs in one basket).

Businesses too grow, expand on leveraged (public) money Either in the form of borrowings or shareholdings. (Only the other day i was reading about a company that had a capex plan of 2400 crs for the next 3 yrs with around 450 Cr in reserves Where do you think it's going to raise the differential from?). So much so that not leveraging during a growth phase is often viewed as a negative by analysts (the thinking perhaps is that the management is not capitalizing on the opportunities aggressively enough) just as some economists view deficit financing as a positive for growing economies (provided off course it's within optimal limits). So no morality bug in leveraging either.

Regards,
Kalyan.

trader111 · #17 6th February 2008, 01:35 AM

btw even in the field of gambling and horse racing there are professionals who follow a strategy and make money consistently

life2007 · #18 8th February 2008, 11:47 PM

Hi Friends !

This is really an interesting topic and I am glad so many are participating in this money minded world.

I would like to give a philosophical point of view in this.

There is something called "inner voice" which is the final decision giver. Whether you like it or not, whether you follow it or not ... i guess each person has this voice propping up now and then dictating you what to do and not to do. Since our mind has the power to overpower it , most of us do not obey it (including me

)

However, the stronger the crime or a wrong decision, your inner voice will prompt you equally strong not to do it. Most of us dont cross our limits in such cases, we listen and obey it if at all we have got good education and teachings from our parents. When somebody is feeling guilty concious, that itself means it is a proof of something wrong being done. It is better not to do it next time for peace of mind.

So Bhavesh, before you come to a conclusion, i think two most important questions will give you a satisfactoriy answer.

1) Is your inner voice supporting you or opposing tooth and nail (strongly) ?
2) Are you earning money without doing any sort of work ?

Thanks & Regards

Jeet

Quote:

Originally Posted by bhaveshdj

So is f&o gambling or business? We are not investing in any company, merely betting whether price will go up or down. So maybe its gambling, but I will prefer to use the word speculation as its not merely cointoss but involves research and logic.

rajsharvan · #19 8th February 2008, 11:59 PM

Quote:

Originally Posted by bhaveshdj

Friends,
I am facing a major problem with my trading(in future and options). I feel trading is gambling and I am doing a wrong thing, but at the same time its my passion and I am doing it in a disciplined manner as a business with proper business plans etc and find it very fulfilling and satisfying.

So what do you think trading is : gambling or business?

to me???????????????

rajsharvan · #20 9th February 2008, 12:03 AM

how is commodity trading?