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Tagged: Risk Reward Ratio
gambling….. Person trading without knowledge and discipline with forecasting the market……………. Business….. Person trade with knowledge and discipline with calculating risk and reward…. moreover gambling and business depends upon on person perspective view.
Stock trading is gambling, if risk is higher than reward. It is business if reward is higher than risk.
I consider stock trading as a business because we buy the shares of a company only after performing technical analysis and results are like reward ratio is more than risk ratio.
Trading with knowledge and discipline is business with knowing the risk reward ratio. If the risk is greater than the reward and trading without knowledge and discipline then it is gambling.
stock trading done with knowledge and discipline is business
knowledge- An ability to identify the Risk Vs Return
Discipline-Taking rational decision, with no emotion in place
if Expected Return>>Expected Risk-Business
if Expected Risk>>Expected Return-Gambling
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