Are you a Trader Or a Gambler?

By: Stapin Brown
Trading stock picks and gambling are totally two different activities, which many people confused it though monetary transaction is involved in both case. Where trading stock picks is about smart investing and looking for a significant edge there Gambling is all about taking risks and looking for an emotional reward.

Trading stock picks have certain rules and regulations established on the traders for dealing with the unknown variables of the stock pick market. The guidelines of trading a stock picks system have usually developed over years of practice and learning the market. Gambling also has certain rules and regulation set for the players, among them has been reported to be successful who treat their gambling as a professional business. The difference in focus is one of the biggest points that distinguish traders from gamblers. In stock picks trading greater attention is paid to the risk involved rather than the rewards of trades whereas a gambler while gambling often get stimulated by the idea of great riches and get an adrenaline burst which when acted upon trading stock picks may affect the quality of trading.

If a trader is endeavoring to be a good steward of his stock picks trading decisions then he needs to educate him with a stuff of information related to the particular stock picks before deciding to purchase it.

Besides collecting information stock picks traders also keep stop losses in place in order to control the money they lose on a particular stock picks trade. A Professional trader emphasizes on these situations and knows how to make sure the odds are in their favor. Traders think of possible bad scenarios before going into trades and keep them in mind in order to stay rooted and not make a mistake to invest more than they can afford to lose. Traders trading stock picks always look for the edge in any trade and are better at viewing the stock picks market for profitable buys and having effective entry and exit rules for their trades. You can see they do not gamble with their resources and have a strong control over their adrenaline.

In the world of gambling, there is no such previous mental working but it deals with mere chances to gain or loss. Gambling depends mostly on luck and if things do not turn out the way the gambler expected then this could lead to a large loss of capital. Therefore it is clear that trading and gambling both are two different activities to earn resources.

Investment
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