Trading and investing, both are just like two sides of a coin. Traders make fast money, investors make slow money. I believe both investing and trading requires knowledge. Those who make consistent losses in trading haven’t done enough research. It’s wrong to term trading as gambling. If you take it as gambling, then sure market will take everything away from you. You cannot just buy any stocks as an investment and expect it to go up in the longer term. Similarly, you cannot just buy/sell anything in trading without proper study. Trading is based on probability, (Risk to Reward ratio matters a lot) and Probability isn’t gambling. It is a mathematical concept.
Happy investing and trading!
you can see some youtubers, even after so much experience in market, atlast they are all in teaching buisness. from that we can know consistent earning from mkt is very difficult.
what illustration do you need?
Isn’t the word “professional” in professional trader suffice?
The trader is getting paid to make money using other peoples money(OPM). A professional traders gets a monthly salary while a retail trader trading using his own money is not getting a monthly salary.
e.g. Traders & analysts working for funds(hedge funds/Mutual funds…etc) get paid a monthly salary and yearly bonus comes from the performance of the fund they are working for.
you cannot compare a retail traders with a professional trader, if that is what you are asking.
Now coming to the gambling part. Trading as per people in this forum have put is “not” gambling. So no comparison of professional gambler vs professional trader.
Here first I want to clarify that in no means I am demeaning the traders, actually I love them, because of them market has a ‘life’, because of them there is a liquidity, as an investor I really appreciate that. But as you mentioned about probability and its association with mathematics you drew my attention towards its efficiency of prediction. But again think properly it is really a probability? We found/calculate probabilities among some known patterns, which exist, but maximum traders believe that price movement has a definite pattern which is fallacious assumption at best. Stock’s price movement is driven by human behavior and that’s does not have any pattern. How probability theory works on uncertain things? Getting 6 on dice throwing game is 1/6 according to probability because we already have the data that a dice has six sides but how does it work on stock’s price movement (its unknown).
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Market is driven by human emotions and it won’t change.Those who know by experience that the price will be moving like this because of an emotion ie. dominant at the current market will know what will happen next.Thats where a trader earns profit.Its just not probability alone but a certain level of assurance that the human emotions drive markets and it keeps on oscillating and recurring.Ie. why we have chart patterns which reccur again and again.