Wednesday, September 4, 2019

Are You Trading or Gambling?


Trading involves examining past information and analyzing available data to trade or invest in stocks. Unlike gambling, trading has no ultimate win or loss. 

Trading to Win, and Not Trading a System

Trading in a methodical and systematic way is important in any odds-based scenario. Trading to win seems like the most obvious reason to trade. After all, why trade if you can't win? But there is a hidden detrimental flaw when it comes to this belief and trading.
                                     
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The Bottom Line

Gambling in the markets is often evident in people who do it mostly for the emotional high they receive from the excitement and action of the markets. Finally, relying on emotion or a must-win attitude to create profits rather than trading in a methodical and tested system, indicates the person is gambling in the markets and unlikely to succeed over the course of many trades.
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