We all have a friend or a family member that refers to trading as "legalized gambling".  Well, I would have to agree.  Sort of.  If talking about long term “investing” over the course of 15, 20, 30 years… than clearly, gambling it is not.  Over the course of time, you get closer and closer to that magic number of around 8 -10% a year.  There is little uncertainty of achieving those kinds of gains.  In the long term it is the casino that wins when you gamble.  Sure, you may get lucky here and there, but over the course of time, the casino wins.  Every time. It’s nearly  the perfect business because profits are guaranteed provided you keep cheaters, criminals and other costs in check.  You better believe they do.  In fact, there’s an interesting article about Las Vegas security and how it could have been used to avoid the September 11th attack.  Casino security operators may know more about you than your own mother!

So, how about shorter term “trading”.  Is that gambling?  Considering that the definition of gambling is "to bet on an uncertain outcome with money or property" I would say yes!  However, there is a big difference between trading and casino/sports betting.  The degree of uncertainty of the outcome is MUCH greater when "gambling" at the craps table or placing a bet on your favorite sports team.  Gambling at the craps table is pure chance, void of any skill or knowledge.  The probability of success when placing a bet on your favorite sports team is entirely in the hands of your sports team.  Trading allows YOU to control the probability of success by studying the overall market behavior, the price and volume movement of the stock as well as the company’s fundamentals.  These are all variables you use to steer that degree of uncertainty much closer to zero. 

So I say, take the day off work, invite your buddies over, pour a few cocktails, lay out the buffet and let the buy orders fly!  Why have a good time and lose money when you can have a good time and make money.  The NYSE is thinking about opening a few hours early to generate more revenue?  Why stop there?  Stay open until 2AM Fridays and Saturdays and allow “trading” casinos to operate, complete with prime rib dinners, cocktails and Wayne Newton.  It’s not such a far fetched idea in this gambling crazed world.