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Tagged: Risk Reward Ratio
When the trading with the knowledge and discipline of risk and return then it is business
When there is no such analysis and it is done with emotional concern it is gambling
When it is made with knowledge it is business
When it is done with luck factor it is gambling
Stock trading can be both gambling or business. It depends on the traders approach. If the risk is higher than the reward it becomes gambling. If risk is lesser than reward it becomes business.
Business : RISK < REWARD..
Gambling : RISK > REWARD..
Stock trading is business when the investor enter into trade with Knowledge and discipline.
However,
Business – Risk should be less than returns
Gambling – Risk should be higher with no matter what the return will be
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