Are you a trader or a gambler?
We came with a very interesting article in the field of trading psychology and capital management
By reading this article, you will find out whether you are a prostitute in the clothes of a trader or a trader in the clothes of a gambler! Maybe this sentence is a little strange for you. But it is better to stay with us until the end of this article to find out whether you are a trader or a gambler. If you are a forex trader or a digital currency trader, it is better to read this article several times.
Before we go to the review of this article, it is better to teach an educational tip to convert your money from Rial to Dollar or Tether. Of course, as a trader, you need to convert your money in the short and long term. Since the currency price in Iran is not stable. We have put a live price board of digital currencies for you. You can make a good decision in this area by having the average market price.
In order to know whether you are a trader or a gambler, you must achieve a precise and single definition of each. A trader is a person who profits from the fluctuations of the financial market. Pay attention that a trader is not comparable to a dealer or a gambler. Because his working principles are based on mathematical and statistical knowledge. But also note that most micro traders have illusions of knowledge. This makes them lose their capital quickly in the market. A trader enters a position when he has already checked the amount of his loss.
Those who have trading illusions usually think that the best way to trade is to focus on their profits. For example, they leave their jobs because they have gained little capital in the financial market. But they quickly lose everything. But all big traders usually have several sources of passive income that they think about covering their risk before trading. The second point is that traders usually look at mathematical and statistical models when they want to trade.
The reason is that they consider math and macroeconomic news to be part of their job. Make sure that if you are going to be a 100% technical trade. You will need two factors. One is capital management and the other is risk management. The reason is that we are always in a state of uncertainty in the financial market due to the knowledge we have. But our risk is based on the amount of our property and not on the amount of our desires and wishes.
A gambler is someone who gambles for fun as well as for profit. All these games are random and you have to do your best to control the amount of risk by mastering your mind and the atmosphere of the game. If you get caught in the trap of your greed, then you will suffer consecutive losses. Note that even the best gamblers have losses, but managing these losses is very important. When a regular gambler loses, they increase their game number.
But on the other hand, when a gambler has two or three losses in a row, he stops the game. Keep in mind that regular gamblers usually place all their stakes on intelligence and luck. But professional gamblers rely heavily on uncertainty in the game. If you are careful, there is uncertainty in both gambling and trading. To increase his skill, the gambler usually tries to play free games with a lot of risk.
For example, he tries to encourage everyone to be a professional gambler in friendly gatherings. But on the other hand, the situation is usually very different and the common gambler encourages everyone to play with money and bets. A professional gambler knows that betting pays off when done with the right people. The typical gambler tries to play more in every loss with debt to compensate for his losses. He doesn’t care what his real condition is!
Well, now I come to my main question, you know the two groups well. Now we will check which category you are in.
If you trade in every trade regardless of the risk and regardless of the amount of margin in your account, this means that you are a gambler and not a trader. If you are thinking about your chance and probability of winning in the next position instead of focusing on the trading hours and the volume of the active market during your trade, you are a gambler and not a trader. If you open your trade at the time of trading without a strategy that has backtest and forward test, you are a gambler and not a trader.
When a trader is going to open his trade, the first thing he thinks about is if he lost this amount of capital. What will happen to him? Is market psychology losing its edge? Is he no longer in control of himself and is ready to take revenge on the market? When they go into loss, does it stick to its loss limit or does it shift it? If your answer to the above questions is negative, then congratulations, you are a gambler and not a trader.
By this point, you’ve pretty much figured out whether you’re a trader or a gambler, but one very important thing to keep in mind is not to confuse short-term luck with strategy. For example, if you make a lot of profit by averaging down, which is a gambling move, you are not art.
You are in luck. But luck is not going to be with you for long.
A gambler will bet on horses one time, then turn to cards the next. After some time, he goes to online idol and digital game. This cycle continues as long as the money is in his pocket. But one very important point that you should pay attention to is that the gambler never seeks to learn and always blames others.
Now, if you as a trader always blame others and on the other hand you think that the best trading strategy is always to go to other strategies and know a little about each one. We must tell you that you are a gambler and not a trader. Because you do not have a stable strategy. Any profit or loss you make is likely based on no risk management.
In this article, we intended to introduce you to the fact that many people have the illusion of knowledge and becoming a trader. These people are actually no different from a bankrupt gambler because they do not have a proper understanding of market risk.
A real trader will never go bankrupt in a bank. Because the first principle of work in the bank is to control emotions, paying attention to the principle of uncertainty in the market. If you have any questions or misunderstandings about any part, please let us know so that we can inform you. Our whole intention is to help the Iranian trading community to increase their level.