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Tagged: Risk Reward Ratio
Stock Trading is a Business if the rewards are higher than the risks associated with it. Stock Trading is a business if its traded with knowledge and discipline.
Stock Trading can be a gamble if the risk associated with it is higher than the returns, its purely based on luck factor.
If the risk is greater than the reward, then stock market is considered as gambling.
If the reward is greater than the risk, then stock market is considered as trading.
Stock Trading is business, when one does it with knowledge & discipline. The identified reward is greater than risk.
Stock Trading is gambling, when one proceed without proper knowledge. The identified reward is lower than risk.
If we understand the risk and returns then it is business. If do execute the trade blindly without calculating the risk and returns then it is called as gambling.
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stock Trading is a <strong style=”box-sizing: border-box;”>business, when one does it with the knowledge to derive the return and risks ,and has the discipline to control the human emotions.</p>
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