“gamblers are willing losers who occasionally win”
That is, gamblers risk their capital on propositions where the odds are either:
– unknown to them
– cannot be known
– which actual experience has shown to have negative expectation
– or which they know with mathematical precision to be negative
They are rewarded for doing so on a random schedule and a random reward size, which is a pattern of stimulus-response which behavioral scientists have established as one which induces the subject to engage in the behavior the longest without a reward, and creates superstitious as well as compulsive behavior patterns. Because they have traded reason for emotion, they tend not to follow reasonable and disciplined approach to sizing their bets, and often over bet, leading to ruin.
“speculators are willing winners who occasionally lose.” That is, speculators risk their capital on propositions where the odds are:
– known to have positive expectation, from (in increasing order of significance) theory, empirical testing, or actual trading experience
They occasionally get unlucky, and have losing streaks, but these players incorporate that risk into the determination of the expectation. Because their approach is reason-based rather than driven by emotion, they usually have disciplined programs for sizing their bets to get the maximum geometric growth of their capital given the characteristics of the return stream, their tolerance for drawdown.
If a player has positive expected value on a bet, then it is not a gamble at all. The house does not gamble. It builds positive expectation into its games. It is a willing winner, although it occasionally loses.
There are positive aspects of gambling, which I have pointed out earlier in the thread and won’t belabor. To say that “all gambling is bad” is to take the narrowest view. Gamblers who are willing losers (by my definition all are) provide the opportunities for willing winners (i.e., speculators) to relieve gamblers of the burden of capital they clearly have no desire to hold onto, or are willing to trade in a fair exchange for the excitement of the play, to enable their alcoholic habit, to pass the time, to relieve their boredom, to indulge delusions of grandeur at the hoped-for big win, after which they will quit playing, or combinations of all of the above.