Is Trading Just Glamorized Gambling?

01.12.2021
Industry Blog

When you think of GAMBLING, what’s the first thing that comes to mind? Of course, a valued resource should be wagered. There has to be a bet at stake. There’s a reward to be won by the participants. But wait? Isn’t that TRADING is all about? Are we doing the same thing here? Let’s unravel and set all our questions straight about the difference of trading and gambling.

Whether beginner or experienced traders alike, it is inevitable to fall for GAMBLING tendencies during your trading patterns that we ultimately avoid. Let’s identify these red flags so we can totally be aware and prevent this action in the future.

Trading based on Luck vs Probabilities

Yes, being lucky feels so great but trading solely on this will take you nowhere. There are just so many inconsistencies and variables to risk. This is one reason why pro traders rely on probabilities to secure that profitable trades often and in systematize manner.

Staking Contingency vs Investments

One thing common in trading and gambling is risk. If there’s no risk, then every trader right now would be successful and everyone will just blow up the stock market. Since risk in involved, you should be able to control and stake an asset you’re willing and able to lose like an investment and it’s always a gamble to risk your contingency funds instead.

One win at a time vs winning strategy

Trading blindly and only for the excitement of winning explicitly shows a gambler’s true form. Yes, a Pro trader might also have “winning” same as their objective (of course no one’s goal is to lose) but ultimately this a part of their winning strategy. They may also be willing to lose sometimes if this is part of their trading plan which is a total bummer for gamblers.

Stopping at loss vs stopping at crash

Loss will always be present in trading and many of good traders take these losses and sometimes voluntarily as part of their trading plans. Keeping and managing losses and knowing when to stop is a critical skill innate to a pro trader. Unlike for gamblers, they don’t know or refuse to stop until they fall into complete crash and indebtedness.

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