Tuesday, August 14, 2007

Trading Economic News Event - A Gambled Bet?

Yes, I am believing it now. My "bet" was spoiled after the release of an important economic data. Any form of obvious gambling is definitely no-go for me from now on.

On the other hand, are traders gamblers? I believe many trading professions do include some degree of gambling, some level of chance. Hence, yes, it is really gambling.

Most people in what they call economics believe actually not in economics: They believe in gambling. It's called a financial system; it's a gambling system. And people understanding that, ever since Galileo came up with this idea about gambling as the basis of discovering how markets would work, everyone has tried to get a better statistical system for gambling. Like breaking the bank at Monte Carlo, making a killing at Las Vegas, probably one's own. And therefore, these guys who are running the financial world today, depend on the assumption that they've got a "better system"—as they used to have at the race tracks, a "better system" for handicapping the horses. And it would really handicap the bettor, in the end, as he found himself on the street without cash—and being pursued by his lenders.

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