I was looking through the weekly Tradingview education and I came across one that was really interesting. It discussed what separates a trader from a gambler.
Unfortunately, most people confuse trading with gambling, When they trade(gamble) and lose money, they blame the market or blame what causes the incompetence and justify it with poor excuses.
It is not easy to be a professional trader, but practice makes you confident in what you do for a job. This is not a guaranteed or comprehensive trading strategy, but the few points are excellent for anyone to be a trader.
1) As a trader, one’s aim is to focus on the next 100 trades instead of the next 10. Long-term success, profitability, and consistency are two of the main things traders should target. However, a gambler’s wish and desire is to make quick money.
2) A successful trader/investor has a backtested trading plan that he sticks to and optimizes along the way, adapting to changing market conditions. On the other hand, gamblers like to trade based off what other people think and tweet, or by simply opening a random Buy/Sell position and hoping it plays out successfully.
3) Profitable traders always diversify their portfolio and risk no more than 1-2% per trade. On the contrary, gamblers go “full margin mode” on a single trade without setting a Stop Loss and end up blowing their accounts and blaming the markets.
4) Chasing markets and rushing the process is not what real traders do. Instead, they follow their plan and wait for the price to play out and match their entry criteria before executing. Nonetheless, gamblers like to overtrade, open positions based on nothing, make biased decisions.
5) When enduring a loss or two (or three), traders neither get emotional nor try to revenge the markets. They know that if they obey risk management principles and open high risk-to-reward positions, they will cover all their previous losses and get back to making profits. Gamblers, on the other hand, get angry and start attempting to revenge the market by making foolish decisions and entering many illogical trades.
6) Last but not least, if you want to be successful and profitable in this field, you have to treat trading as a business and take things seriously. Those that think markets are a playground or a casino machine will never succeed in this space.
Source:
https://www.tradingview.com/chart/BTCUSD/TRrwICB7-Traders-vs-Gamblers-Know-the-main-differences/Some people think they are traders until they realize too late, that they are gamblers.The first way to distinguish trader from gambler are their expectations.Gamblers think that they can make easy money quickly without thinking the risk.Whereas traders,they know that making money in the market is not a get rich quick method.Traders know that to get rich,you have to do it consistently and sustainably.
