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Stock trading is a business when we understand the risk and reward ratio otherwise it is considered a gambling.
For any business, the risk to reward ratio is calculated. When the risk is greater than the reward, it is called gambling. When the reward is greater the risk, it is called business.
stock trading is both business and gambling according to the attitude of the person it changes when reward is greater than risk is called business and when risk is greater than reward is known gambling the trader shoud r=trade with the knowledge and discipline
RISK AND REWARD are applicable to both ie gambling and business IN gambling risk is more than reward however prudent the gambler may be IN FACT prudent person will not gamble at all
IN business reward is more than risk if one is prudent
IF ONE DOES NOT KNOW THE RULES OF THE GAME THEN STOCK TRADING OR ANY TRADING WILL BE A GAMBLING IN WHICH SUCCESS IS LIKE FLIPPING A COIN OR EVEN WORSE THAN THAT
ON the other hand if one do the analysis of demand and supply of the share in which he decide to trade then execute the trade as per the conclusion without any emotional bias then stock trading is a businessStock trading is a gambling when the trader do not have any clue that why is he buying a particular stock / the target price / stop loss. In simpler terms if he does not have any trade plan / risk reward calculation in place, then he is in the market to gamble, believing only in his luck.
Stock trading is a business in case of the exact opposite. A trader completes his analysis with logical assumptions, prepares a trade plan with a target & stop loss and gets into the market just to execute the plan.
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