Stock trading vs Gambling

Many people think that trading in the stock market is like gambling. They think that the stock market is much more similar to casinos. For most people, gambling is the same as what they are doing in the stock market. For others, stock trading is not gambling but a platform for earning consistently profit. So let’s get a deep insight into the comparison of trading and gambling in the stock market.

1) Gambling is no more than luck:-

Many people compare stock trading to gambling because it carries a lot of risk. Trading can take the form of gambling if you do it blindly. If you don’t know the technicals of a stock, fundamentals & financial records of the company, and directly jump into the stock market, then you are doing gambling not trading. Because you have not deeply analyzed the stock and have no idea how the company will perform. Sometimes we just hear people saying that the stock of company xyz is doing well and we have to trade this. We start trading that stock and then suffer huge losses in the market thereafter we term stock trading as gambling and advice other people to not enter in stock trading.

But some people intentionally like to gamble in the stock market because they hope that, if they hit it lucky, their return will be large. They get excited about the potential for a big win but in the end, they get trapped in the gamblers cage and suffer losses.

Book stores are full of good books on health and dieting but still, the world is full of overweight people. In the same way, there are a lot of stock trading books, articles, mentors available in the market but still, the world is full of gamblers.

 

2) Stock trading is a game of mindset and expertise.

Traders are much more different than gamblers. They trade after proper market research, stock analysis, and follow risk management principles. Professional Traders can able to read price-time charts and manage trades effectively at their own without any broker’s tip or advice. They are emotionally stable, disciplined, and have profit earning strategies. They work extremely hard in learning and mastering various tools of the trading system.

If you are a gambler and want to become a successful trader, then you need to master the below principles.

  • Learn and master three pillars of stock trading.
  • Master various stock trading tools.
  • Develop your consistently profit earning strategy.
  • Have patience and be emotionally disciplined.

Final thoughts:-

Share market is gambling for those people who enter without proper knowledge, market research and blindly jump into it. But for a trader seeking knowledge, do market research, and is well aware of all the market risk associated with trading, it is a great platform to successfully earn profits and achieve a status of financial freedom.

Stock Trading is similar to business activity. Gain knowledge about it before entering into it. Learn and master three pillars of trading – trading system, trading psychology, and money management. If one of the three is missing, then you are skating on thin ice, and that is dangerous.

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