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Tagged: Risk Reward Ratio
Stock trading can be done as Gambling or Business.
Business:
If the stock trading is executed with knowledge and Discipline, it becomes Business.
Knowledge is aware of the risks and rewards and and executing the stocks only where the risk < reward.
Discipline is taking decision based on rational aspects and not on emotional aspects.
Gambling:
If the stock trading is executed without any analysis or with the risk > rewards, it becomes Gambling.
If you do trading with knowledge and discipline ,then trading is Business. and Risk is less than reward then trading is Business.
If you do trading without any knowledge and Discipline,then trading is gambling and Risk is greater than reward.
Stock market is a business . Any one who does this business(Trading) post analysing the risk appetite the transaction is termed as business , else it is mere gambling,
Stock market is a business who trades with knowledge and discipline. Risk<reward
Stock market is a Gambling who does not trades with knowledge and discipline. Risk>reward
Stock trading is a business – You have to trade with proper knowledge, Discipline and Consistency.Stock investing you can limit your losses.
Gambling : Just trading without any knowledge and making a decision with emotional or sentimental. It’s a pure Chance or Luck,
A business carries LOW RISK and HIGH RETURNS
A Gambling carries HIGH RISK and LOW RETURNS
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