- This topic has 392 replies, 387 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
Stock Trading may be considered as both – gambling or business .
As long as it gives profit to the person where Returns > Risks , it is considered as Business .
When it gives loss to the person where Risks > Returns , it may be considered as Gambling .
If stock trading is done with ” knowledge and Discipline” , returns is assured to the person .It may be illustrated with the example of Casino where the person who runs it may be making profit and those who are the participants are at a loss .
stock trading is determined to be gambling or business based on risk involved. if the risk is greater than the profit then its termed to be gambling. if the risk is lesser than the profit then its termed to be business.
Stock trading is Business if you do the good trade(i.e your reward is more than risk).
If you trade with KNOWLEDGE and DISCIPLINE definitely it is a business.
But if your risk is more than your reward then you are doing a Gambling.
STOCK TRADING is considered as GAMBLING & BUSINESS.
Its depends upon the way we approach in the market.If the stock trading is executed with KNOWLEDGE & DISCIPLINE it is known as BUSINESS.Which reduce is the risk.
If the stock trading is executed without proper KNOWLEDGE then it is known as GAMBLING.which reduces the rewards.
Gambling / Business depends mainly on the risk-reward ratio. when RISK > REWARD, it is called gambling and when REWARD > RISK, its called business.
When any investor enters the market without knowledge and discipline, its called gambling. When an investor decided to trade after proper analysis of risk-reward ratio, it becomes a business.
- You must be logged in to reply to this topic.
