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Tagged: Risk Reward Ratio
Analysing the amount of risk and returns involved inside, the stock trading can be determined as gambling or business.
If risk is greater than return, it is gambling. In other way, if returns are greater than risk involved, then it is business.
Business man aims at profit. Gamblers are either clue less of whats gonna happen. if the person takes a choice without whats gonna happen then its gambling. if a person invest his time and money and his only aim is profit and with limited loss then he is a business men. Business man do lots of analysis and research before starting a trade or project.
We invest money in share trading expecting to get profits. When something is done in investing and if it gives a profit, it obviously becomes a business. So, share trading is a business and not gambling.
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