Online Stock Trading vs. Online Poker

[DONKTARDO]

Hypothetical Situation:
Recently legislation was passed making the online trading of stocks illegal. The emergence of online trading had allowed millions of Americans to trade stocks on a daily basis, from the comfort of their home. However, recent studies show that the average American knows very little about stocks, causing their trading results to be primarily based on luck. However, thankfully, the American government has stepped in to protect its citizens from themselves. No longer will Americans be able to trade stocks online as they please.





much different from what they've done with poker? discuss.

[Mendacious]

Lock please for misleading Subject Title

[TheEngineer]

[ QUOTE ]
Lock please for misleading Subject Title

[/ QUOTE ]

I hate misleading Subjects as well, but I think most of us figured this was satirical prior to opening it.

As for the topic, the non-gambling public likely won't see true gambling in the same light as investing with risk. Comparisons to day trading and wild speculation could carry more weight, of course.

[cardcounter0]

Online Gambling and poker is raked by shady off-shore companies.

Online Gambling and stock trading is raked by upstanding Wall Steet firms that are owned by and employ hundreds of past Senators, Judges, etc.

See the difference?

[Uglyowl]

Stock trading is simply buying and selling of portions of companies. What is even remotely illegal about that? I think it is kind of silly to try to make the argument that the stock market could be a grey area.

Yes, there are some people who use the stock market to feed their “gambling itch”, but there are also some don’t use glue to stick things together.

[cardcounter0]

[ QUOTE ]
but there are also some don’t use glue to stick things together

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That is why in many places you have to show ID to buy glue or you have to be over 18.

Poker is merely the buying and selling on the likelyhood of the arrangement of a few pieces of paper called cards, what is even remotely illegal about that?

[RonMexico]

What's the difference? I'll point out a few.

1.) Investing contributes to U.S. GDP and is taxable. Offshore poker operations do not.
2.) A decent poker player can potentially have a bigger edge with less uncertainty (at modest stakes) than a "decent" investor.
3.) To almost anyone outside of poker, the difference is that poker is a game of chance and investing is a game of skill. You won't be able to convince them otherwise since they live in the real world and you are some kooky gambler.

[Piece of Cake]

I think the argument that the OP is making is that I, having no skill at investing, can risk/gamble tons of my own money daily with my online broker without any due diligence. I can, for example, randomly pick stocks available for trade with my broker. Heck I can even assign randomly stocks from my effective universe of the NYSE, AMEX, and OTCBB names and throw then on a roulette wheel. Then pick my investments based on a spin. I could throw options and due this on margin if I wanted to.

I'm sure someone can show examples of people who are addicted to day trading, and how it's had a negative effect on lives for that matter.

Does't the book "Random Walk Down Wallstreet" prove on a daily basis stock movement is random - and determined by the luck of the draw?

If the argument here is that long terms experts have been shown to make a profit, we all know the same holds for poker.

[morphball]

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What's the difference? I'll point out a few.

1.) Investing contributes to U.S. GDP and is taxable. Offshore poker operations do not.
2.) A decent poker player can potentially have a bigger edge with less uncertainty (at modest stakes) than a "decent" investor.
3.) To almost anyone outside of poker, the difference is that poker is a game of chance and investing is a game of skill. You won't be able to convince them otherwise since they live in the real world and you are some kooky gambler.

[/ QUOTE ]

All of these are completely false, except the last one is not as glaringly wrong.

[Piece of Cake]

[ QUOTE ]
What's the difference? I'll point out a few.

1.) Investing contributes to U.S. GDP and is taxable. Offshore poker operations do not.
2.) A decent poker player can potentially have a bigger edge with less uncertainty (at modest stakes) than a "decent" investor.
3.) To almost anyone outside of poker, the difference is that poker is a game of chance and investing is a game of skill. You won't be able to convince them otherwise since they live in the real world and you are some kooky gambler.

[/ QUOTE ]
1. This is the very argument that the WTO is presenting. It's not an excuse to ban poker. I can invest via an offshore broker if I choose and I still have to pay taaxes. And they certainly can't ban only offshore brokers.
2. This is a great reason why poker is less of a gamble than the stock market.
3. You propose that people feel there's no risk in investing - I won't argue, but there's a reason why legally all those fund prospectus have that big disclaimer that says returns aren't guaranteed.