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divya Sing made post

Is it better to approach the market as a trader or as a gambler?

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Juvina Maggie answered.
2 years ago


Trading and gambling have to be put in perspective. When you gamble you are taking a risk that is blind. In trading , you manage your risk and trade with discipline. There is no scope for discipline in gambling. If you want to really trade then it is about discipline.

During an investment conference, an eminent speaker was addressing a group of active traders back in 2012. Asked why they trade in the market, the responses were weird as well as humorous. Some traded to multiply their capital. Some traded for building portfolios. But most, it seemed, were trading merely for the thrill and the adrenaline of trading, because it appeared to be a lot of fun.

On a closer examination it turned out that most of the people in the room had made returns of 12-15% during the year 2012. This was not bad considering that a bank FD would have given them a return of less than 9%. The funny outcome becomes visible when we put things in perspective. But the real shocker came when the speaker informed them that had they put their money in an equity fund, they would have earned a whopping 45% in 2012, without the ulcers. That is what happens when you approach the market like a gambler, you simply lose perspective. As a trader, you always put things in perspective.

Quite apparently, these traders had never understood the fundamental difference between trading and gambling. There is a famous saying in Wall Street, “In the short term, the market may be a slotting machine, but in the long run it is always a weighing machine”. Focused on the short end of the market, they tend to miss out on the obvious bigger picture. But first, what are the aspects of trading?


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Juvina Maggie answered.
2 years ago


Trading and gambling have to be put in perspective. When you gamble you are taking a risk that is blind. In trading , you manage your risk and trade with discipline. There is no scope for discipline in gambling. If you want to really trade then it is about discipline.

During an investment conference, an eminent speaker was addressing a group of active traders back in 2012. Asked why they trade in the market, the responses were weird as well as humorous. Some traded to multiply their capital. Some traded for building portfolios. But most, it seemed, were trading merely for the thrill and the adrenaline of trading, because it appeared to be a lot of fun.

On a closer examination it turned out that most of the people in the room had made returns of 12-15% during the year 2012. This was not bad considering that a bank FD would have given them a return of less than 9%. The funny outcome becomes visible when we put things in perspective. But the real shocker came when the speaker informed them that had they put their money in an equity fund, they would have earned a whopping 45% in 2012, without the ulcers. That is what happens when you approach the market like a gambler, you simply lose perspective. As a trader, you always put things in perspective.

Quite apparently, these traders had never understood the fundamental difference between trading and gambling. There is a famous saying in Wall Street, “In the short term, the market may be a slotting machine, but in the long run it is always a weighing machine”. Focused on the short end of the market, they tend to miss out on the obvious bigger picture. But first, what are the aspects of trading?


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Raj khan answered.
1 year ago


Vyapar ke room mein Sampark karna thik rahega