Is trading similar to professional gambling

Traders are said to be as Professional Gamblers in society.
Is it the same repute deserved for traders?

The ones who say trading is gambling, knows nothing about trading :joy:
Just donā€™t listen to the ā€˜societyā€™ they simply donā€™t know.

ā€œJust listen to your own self and not othersā€.

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Hey @Samir_Kumar1 ,

Although what you said used to be applicable in the past due to lack of knowledge and conservative nature of our society towards unknown things , The perception of people (especially the young generation towards market and trading is quickly changing)

What needs to be understood by most is, Just like how there are traders in every walk of life like Vegetable markets, Fruit markets, Jewellery market and so onā€¦There are traders in stock markets too who mainly deal with shares of the companies.

There is an element of gambling in every walk of life , it is just that trading seems like an obvious soft target because people (out of greed and lack of knowledge) look for quick money without learning the intricacies of the market.

One who realises this will understand that trading requires extraordinary amounts of research, analysis, risk management and psychological control and strength. :slight_smile:

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After all that the probability of winning the next trade is still 50/50.

Not really, it can be 35% and still be good, it can be 70% and still be bad. Look up expectancy.

But yeah, it only works in probabilities, needs lots and lots of patience and we have to deal with future uncertainty.
Sometimes things work too well, and other times not - often for long periods. I think trading, with edge, is about survival too. Being able to sustain through bad times when most/many would give up due to lack of emotional control or too much risk or perhaps not good enough system.

But it works, and can be a profession ā€¦

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Then peoples should study mathematics properly mainly probability concept should have clean knowledge to know what is in trading

Just forget about profit and loss and trade execution just watch the market like textbook readingā€¦and read some specified books about psychology you will increase the winning percentage to 60 to 80 percentā€¦ according market conditions

I think what matters in trading is right risk management. See, there are only 4 things that can happen;

1 big profit
2 small profit
3 big loss
4 small loss

If somehow, we learn to manage every trade cutting in small loss and take big loss out of the game, then it becomes much easier to become profitable.

We canā€™t avoid losses, not we can expect a big profit each time, but only thing that remains always in our hand is risk management, and to do that, it requires good psychology and mindset, thatā€™s where most of the traders fail.

Talking about winning probability, it not need to be 8/9 out of 10. With just 40-60% probability, a trader can earn very well only if he follows the risk management properly, because Risk:Reward ratio will help significantly then.

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