Ep 14 - Gambling and Day Trading
You’ve probably heard about Gamestop, shorted stocks and cryptocurrencies. There is growing interest in day trading and the action has moved from the stock exchange floor to our devices and online forums. As some people lose money, a question being asked is - is day trading a form of gambling?
Listen to this episode of our podcast, Fold em: Help for Gambling Problems and hear two people offer their views on this question. Hear from a former day trader and online poker player, and a well known Canadian financial analyst and educator, Tracey Bisset. Click on the green play button above to tune in now.
Watch the video of the Fold em interview with Tracey Bissett on YouTube.
If you prefer to listen to this episode directly from Google Podcasts or Apple Podcasts click on the red button below. Or, search for Fold em on your favourite podcast app.
Get tips for protecting your HARD EARNED MONEY when investing and staying on track with your financial goals.
The Risks of Day Trading and Online Gambling
In this episode of Fold em, we hear from David who shares his experiences with day trading and online poker. He says that with both, he FELT like he knew a lot about strategy. Now, he sees it differently.
For him, there are too many unpredictable factors influencing the stock market. The risk is too great - even if you believe you have a sure thing. And, like with poker, the many hours alone and online pulled him away from work, family and feeling healthy.
David decided to step away from both day trading and online poker (which he says are both gambling). He now chooses to work with a financial advisor to manage his investments, which all have a longer-term horizon than the quick turn around of day trading.
Is Day Trading Gambling?
What is the definition of gambling? Gambling (also known as betting) is the wagering of money or something of value (referred to as "the stakes") on an event with an uncertain outcome, with the primary intent of winning money or material goods. Does day trading fit this definition?
Tracey Bissett, a Canadian financial analyst and educator, also joins me in this episode. She agrees that day trading stocks and cryptocurrencies are akin to gambling.
Both she says are high risk or speculative investments. The problem is, that similar to poker, many decisions get made from a feeling, hunch or recommendation from someone who doesn’t have the bigger picture. So, it feels like the risk is low, when in fact it is high. This is where people can get into trouble.
How to Protect Yourself When Investing
Tracey encourages people to be clear on their basics when investing:
what are my financial goals (e.g. to save for school or a home? learn about the stock market?)
what is my time horizon (when do I need to access the money I have invested?)
how much risk can I tolerate (what is my comfort level with risk? how much can I afford to lose?)
If you (and the people you are supporting) can’t afford or aren’t comfortable with losing the money you are trading, then higher risk (speculative) investing such as day trading is not a fit for you. Neither, is online poker, sports betting or other gambling activities. If you would like more information on the signs of a gambling problem and how to get help, go to the home page of this website.
Tracey and David both offer great ideas about how to protect your hard earned money when investing. If you have money available that you would like to put into more speculative forms of investing, Tracey has advice for this as well.
To hear Tracey and David’s ideas about healthy investing, listen to episode 14 of Fold em: Help for Gambling Problems. Listen now by clicking on the green play button at the top of this blog. Or, tune in directly from Apple or Google podcasts by clicking on the red button below. You can also watch a video of the Fold em interview with Tracey on YouTube.
Check out the other episodes and be sure to subscribe so you don’t miss out when new ones are released.
Fold em is a podcast hosted by Adrienne Cossom and her colleagues at Gambling Support BC. Whether you are looking at stopping or scaling back your own gambling or supporting a family member with a problem, this podcast will help you take back control. Hear from gamblers who have been through it and get tips from counsellors.
If you would like to connect with Adrienne, the host of Fold em, or any of our team with Gambling Support BC, click on the red button below. Free, confidential services are available to residents of British Columbia who are concerned about their own or a loved one’s gambling.
To learn more about gambling concerns and how to access resources and support, go to the home page of this website OR click on the red “Learn More” button below.