There are many surprising answers to the above topic.Today I am going to express my thoughts regarding this question.
This topic is going to open your eyes and it will help you decide whether you are gambler or a trader.
Even if you think that you are not gambling in the market or you think that you are fit with you trading style, Still you will get some advice that will help you to create overall good trading results.
Gamblers once they put the money into there trading account they loose all the money and there account is wiped out.
Again they fund their trading account by putting again some money in their trading account and they repeat the same process by loosing it.
They repeat this process again and again without changing there trading style or mindset or their routine.
Trading is a business where you are your own boss, since there are no rules to follow this can induce some gambling qualities.
I am here to realize that unknowingly if you are trading like a gambler you should change your trading style and start trading like a professional.
Basic difference between Trading and Gambling
In the trading industry there are basically no rules since we are our own boss there is a full liberty to do whatever we want.
Therefore unknowingly there are many chances to become a gambler.In trading we our self decide whether to loose or win money.
Many traders think that they are trading but in fact they are doing the same thing what exactly the gamblers do.
Therefore we need to understand the difference between the gambling and trading so that you can realize which best defines you.
Basic characteristics of Gambling Trader
No logical method or no Productive trading strategy
No Trading Plan or Goal
Dont have any trading Knowledge
Dont follow money management rule
Focus only on there profits and rewards
Get highly emotional with the trades
Always expect impractical profits from every trade
Basic characteristics of a Professional Trader
Have Logical Methods or Productive trading strategy
Have the trading plan and goal
Have a trading Knowledge
Strictly follow money management rule
More focus on Trading ideas
Trade only according to there trading strategy
Dont get emotional with winning or loosing trades
Manage their trading as a professional business
As I listed the characteristics of Gambling trader and a professional trader, if any of the points listed above in gambling trader section apply to you then you need to take action to be a professional trader.
If any the points in gambling trader apply to you then no problem , there is nothing wrong to admit that you are gambling in the markets, actually this happens to all of us ,I also was one of the victim of it.
Generally this happens with most of the traders in the begining.Trader has to admitt it and change accordingly to be a professional trader.
Following changes has to be done for a gambling trader
Open a demo account and stop trading with real money and start trading demo account until you learn to trade successfully.
You should have a productive trading strategy that works.Experience the results of that strategy with minimum number of lot.see and test the results whether it works.
You should have a daily trading plan, you should be pre planned before trading.Keep records of all of your trades in your trading journal, Treat it as a professional business. By keeping records of your trading you will be able to analyze you results properly.
Strictly follow the money management rule , Do not take a risk on a single trade mor than two to three percent. Risk per trade should be always minimum.Do not risk more with which we are not comfortable.
Dont get involved in over trading. Just find the trades according to your trading strategy.Trade only when you find the high probability winning trades so that you will be able to avoid over trading.
Do not have fear and greed in the market.Do not involve your emotions in any of your trade.Be confident in your trading style and your trading strategy.
Be confident and try to follow the above listed points for about at least twenty one days, you will get habbit to follow the above listed points which results you to be a successful Trader.