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Tagged: Risk Reward Ratio
Stock trading could be both depending on the trader.
It is a gamble when one speculate that the price of a particular stock may be going up or down for no particular reason, or follows somebody’s advice that price may go up or down without any logic or without doing any study.
It is business for one who studies that stock and bases his decision on knowledge and discipline.
Knowledge is the ability to predict risk and reward.
Discipline is taking rational decision based on the risk and reward.
Stock trading becomes gambling when someone creates a position in a stock without any knowledge or analyzing thus taking more risk than reward.
It becomes business when someone does proper analysis about the stock before creating a position thus taking less risk than reward.
Stock market is a Gambling for those who forecast the market without any proper reason.
Stock market is a business for those who calculate the risk and returns.
Putting money in the stock market without knowing the risk and reward is called gambling
Trading with Knowledge and discipline knowing the risk and reward is Business
It all depends on the knowledge of the person trading.
If a person trade without the basic knowledge and on the influence of others then it is gambling.
Person doing trading on analysis may be said as business.
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