Trader or Gambler? - Investing VS Gambling
Are you a trader or a gambler in an online casino? Consider the five qualities that distinguish a professional speculator from an adrenaline player. If you do not have these qualities of a real trader, then there is still something to learn. Having outlined the dates of the Fed meetings at the interest rate in the calendar, having learned to build trend lines and open trades on a demo account, you can begin to call yourself a novice trader proudly. Investing VS Gambling - find out which one is more suitable for you.
Where is the fine line that distinguishes a trader from a regular gambler who doesn't care where to get his adrenaline rush - in a casino, tote or the foreign exchange market? We believe that these five qualities are inherent in a good trader, distinguishing him from the gambling lover.
Perhaps this is the main difference between a successful trader and a gambler. A good trader has his own rules in trading, which he continually adheres to! At the same time, you need to understand that it is not necessary to invent a bicycle - you can adapt for yourself the rules of someone from successful and famous traders.
An essential point: a trading strategy is not some kind of unconditional code that should be implemented, by all means. It must have a certain flexibility, allowing the trader to respond to any situation on the market adequately. A good trader everywhere acts according to his pre-established rules, and not chaotically, like a player in search of adrenaline.
A good currency and stock trader never turns his pockets in a list of keys and does not search through the papers on his desk to find the right document. Concentration, attentiveness, self-organisation - call this quality to someone as you like - without this, a successful trader is merely impossible.
It is also impossible to conduct a systemically profitable trade, manage capital and trade risks, plan the opening of transactions and accompany them without high concentration and organisation. A player can make a sudden bet, relying on his intuition.
A good trader has no random deals - all his actions are clearly planned.
Among gamblers, there are legends about secret systems that allow predicting the loss of numbers on roulette, counting cards in poker and blackjack, always getting a win. In the foreign exchange market, such players also exist. They believe in the existence of the Grail, for everyone it is something of their own - possessing insider information; trading indicator, which gives only profitable signals; a trading advisor who makes a steady profit without any human participation.
A good trader believes only in his own strength, with a sceptical smile watching the paid seminars of all kinds of gurus, about which no one has ever heard of. "How to quickly earn a million dollars? The ticket costs a thousand dollars, in the hall a thousand seats. Thank you all; the seminar is over."
A successful trader does not believe in expensive indicators with artificial intelligence and super profitable trading systems developed in the secret laboratories of Wall Street. A smart trader has tried a lot of various systems, on which he lost and earned money. He believes only in his experience and treats the rest with healthy scepticism.
They say that fools learn from the mistakes of others, and smart - on others. In part, this is true, but it is precisely their mistakes, their bitter experience, that can teach much better than anything else. For a successful trader, the error on which he lost money is the best teacher. Also, here an important role is played by the ability to analyse their actions adequately. A lousy trader is to blame for everything except him - the head of the Fed, the media, bad weather, black cats, the phase of the moon, the currency broker, etc.
A good trader can see his mistake, understand its cause and, more importantly, never repeat it. His success is the fruit of the analysis of the mistakes he once made.
Patience plays a significant role not only for beginners but also for experienced traders.
Do not believe in feature films in which the ingenious trader immediately understands the situation on the market, only glancing at the chart. In life, this does not happen. Each trader has to spend a significant amount of time at the monitor. Someone needs more time to analyse the situation, some less, but there is no need for patience.
For some reason, most novice traders prefer intraday trading to all other types of trading. Perhaps, it seems to them that this way they will get more productive faster. Day-Trading is one of the most challenging trading methods in the foreign exchange market, and beginners choose it because on higher timeframes you need to have more patience, because the lifetime of the transaction (however, as well as profit) is much longer.
A trader with patience plans his trades and waits for the money to "come to him", while the gambler chases after them, usually with nothing.
In fact, the psychological side of trading is so extensive that it is more than enough for a whole pack of scientific dissertations and it's quite difficult to consider them in detail in one article. Our article - this is just a reason for any trader to think what is more suitable for them - gambling VS investing? So if at least one point you have doubts, do not hesitate - become a successful trader and change your life for the better.