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Tagged: Risk Reward Ratio
Trading with knowledge and discipline is the difference. Evaluating the risk to reward ratio is the knowledge . Deciding on a trade plan with no emotional attachment to the decisions made is discipline. When the reward is greater than the risk taken and this is done on proper technical analysis it is a trade.
When decisions are made using emotion , luck or social pressure it is a gamble. When trading for excitement rather than in a methodical and tested way it is gambling. Both activities are very similar but the approach and the way it is conducted will provide the difference.
When risk taken is greater than the reward, it is gambling. When rewards are greater than the risk it is business.
Playing it with emotions without a risk / reward computation is gambling. Else a business!
Stock Trading is a business if trader buys or sells shares based on Knowledge and discipline doing rational thinking without any emotions.
Stock trading is gambling if its done for sheer thrill and pleasure and without discipline
it is business, based on your analytical skill and experience…
EQSIS, A Stock Market Research Firm
Knowledge is Power. Here you may start from basics, get support while practicing and evolve as active analyst, later you can become a pro