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Tagged: Risk Reward Ratio
When risk was taken is greater than the reward, it is gambling. When rewards are greater than the risk it is a business.
Stock trading can be a business or gambling
ITS business if the return is greater than the risk
and gambling if the risk is greater than the return
Business : If the Reward is greater than the Risk it’s Business (Trade with Knowledge and Discipline).
Gambling : When Risk is Greater than Reward it’s Gambling.(Luck)
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stock trading is both business and gambling.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>If one can derive the risk and reward of all trades and does only the trades where the reward is greater than the risk, then it is business.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>If one does trading without minding the risk and reward, then it is gambling.</p>
Stock trading is a business if it’s reward is higher than the risk.
It is a gambling if it’s risk is higher than the reward.
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