Trading happens everywhere, from multi-billion-dollar hedge funds down to the local villagers playing cards for a few rupees. Gambling is addictive for a reason and whilst there is a clear disconnect between investing and gambling, there are more similarities than differences.
Gambling is seen as recreational but the logic behind it is exactly the same.
When you have good information and an edge, you turn gambling into trading. For example there are professionals who ‘gamble’ on certain sporting events like football. But they are not really gamblers at all – they are traders. It’s a profession, and a lucrative one.
The simplest act that you can think of, such as walking across a street, or eating an orange, or riding a bicycle, are all forms of trading. There is a positive outcome (profit or return) in exchange for an assumed risk (potential loss). It isn’t obvious but it’s there.
Trading is life in this respect. It’s just interesting to see it play out on the streets in the way that this video captures.
Just as I turned off my camera, there was an almost full blown fight between two of the gentlemen, obviously over money. Screaming and shouting ensued, and it only just avoided fisticuffs. It’s a shame I missed recording it, you would have enjoyed the video even more.
That’s another lesson by the way. When it comes to money, emotions run high and poor decisions can be made. So controlling your emotions is paramount.