“Is Trading Stocks Gambling?” & Why Are People Always Asking?
We are sorry to have such a click-bait title to attract your clicks as it is… meaningless to compare stock trading and gambling! Yet, why are there many people still getting confused? This article points out some points to clarify the differences and why you should not consider stock trading as gambling!
Gambling vs. Stock Trading: Why Does The Confusion Still Happen?
We believe that the question, “Is Trading Stocks Gambling?”, is the consequence of consecutive failures. Frustration and depression might lead people to wonder whether they are playing the game of dumb lucks.
It is obvious that early stock trading success does not come easily. Such a fact can crash many ‘fragile’ hearts when they have to face the fickle market movements!
When things keep going awry, they know it is not alright to keep trading stocks. You will see when sitting down with some novice stock traders to have their comments on the slumps of stock markets.
We agree how frustrating it is to try in vain, yet the investments does not grow but dwindle! However, the factors that make you lose are the lack of excellent techniques and viable strategies.
Dumb lucks do not come up in the table of discussion, which explains why there are no correlations between gambling and stock trading!
“Hey, We tried our best to learn stock trading techniques. Yet, it ends up like this! Stock trading is not the same with gambling. Okay you’re right as it is WORSE!”, people might respond.
Calm down! We do not say that beginner stock traders do not try their best. Actually, they try so hard and follow the guidelines without any wrongdoings. And it is the problem as stock trading, like any other instruments, needs flexibility!
“Is It Too Much For Beginners To Handle?”, You Might Argue.
Yes, it is quite challenging if you are new to stock trading even though you learn the best techniques from the experts.
So, our advice is to be ready to digest some failures as it is necessary to lose before winning. The thing that you should consider is to start small for affordable losses, instead of being so aggressive!
And this point marks the important difference between stock trading and gambling. Although losses happens, we already expect and prepare the backup plans for them.
Why Should You Not Take Stock Trading As Gambling?
Unlike gamblers who always expect luck to work in their favor, stock traders should know there are always risks awaiting! So, they can calculate how much the possible losses are to decide whether they hold, sell, or buy positions.
But if you take stock trades as the gambling bets, the worst losses can cost your fortune plus debt. What we try to say here is that you still lose when trading stocks, yet the thing mattering is how much!
The role of analysis in a stock trader’s success gets its spotlight! There are many analysis techniques you need to know, yet technical analysis and fundamental analysis are the crucial skills!
Learning to decode the patterns of market trends and project the next price movements guides you to take powerful actions at the right time. And this task can be fulfilled when you sharpen your technical analysis skills.
Meanwhile, fundamental analysis provides insights into the intrinsic values of stocks or assets! It is essential for those who look for long-term profits of shares without being affected by real-time or short-term price fluctuations!
Be the master of analysis techniques, you will set yourself apart from other stock traders!
