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Indian Stock Market - Are you trading or
gambling.
Intelligent trading on the Indian Stock
Market is in no way similar to gambling.
Stapin Brown goes into this issue which
most Indian share traders would have
heard at times. How often has someone
who knows nothing about trading shares
said to you "oh, that's gambling".
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.
The Indian stock market
is possibly the world's best investment
and will be for many years to come ,
this article is one of many which may
assist your trading. SharesDaily.in does
not necessarily endorse the contents of
this article. |
