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Houston, TX
Market Wizard
Experience: Intermediate
Platform: NinjaTrader
Broker: Optimus Futures, AMP, CQG
Trading: 6E
Posts: 1,731 since Jun 2009
Thanks Given: 517
Thanks Received: 4,224
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@KatieD, It is quite simple.
Gambling is placing a bet, not knowing the outcome. $10 on Fancy Pants to win, place or show in the 3rd race at the race track; Red or Black on the roulette wheel; or asking the dealer to "hit me" for another card in Blackjack, when you're holding "13", not knowing whether or not the House already has "21", or plunking down $1 in the slot machine and pulling the handle; or buying a scratch-off lotto ticket. You might win some coin, you might lose your bet. You never know the outcome.
Trading, on the other hand, is taking a "calculated risk". You know in advance what your risk is (where you place your Stop) and what your profit will be (where you place your Target. You KNOW the outcome will be one, or the other, in time. Either your target will be hit and you "win" or your stop will be hit and you "lose". It's got to be one or the other. No "Gambling" involved. You get into a "gambling" mind sense, when you place trades in rapid succession "hoping" to win. You must have a good strategy, with hard and fast rules to which you adhere, and use a calm Zen-like mind in making these calculated decisions at the proper time, as to when to enter the market and in what direction. To do so, eliminates the "gambling" aspect.
| After all, it's what you learn AFTER you know it all, that counts! |
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