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Is day trading like gambling
Roll the dice!
First, we need to define gambling and the dictionary definition of gambling is “playing a game of chance for money”. Now let’s define what day trading is, according to the dictionary day trading is defined as the buying and selling of securities on the same day, often online, based on small, short-term price fluctuations. So right off of the bat we see that gambling and day trading is not defined closely at all. And in fact, one is a game while day trading is a profession.
Why Do People Call Day Trading Gambling?
I believe people call day trading gambling because they lack the day trading education to be successful at day trading. The bar of entry to day trading is very low. All you need is some money and an app on your phone like Webull or Robinhood. Easy as that, you are day trading. But it becomes gambling if you have no training or education.
But what about the stock I saw on FB?
Because of this lack of day trading education, you begin to randomly buy penny stocks. Or worse, buying whatever stock is trending in social media. At what you preserve to be lows or breakouts, thinking the stock with either bounce or continue going higher. But you have no idea about technical analysis or fundamental analysis. Because of this lack of trading education, you are in essence gambling just rolling dice expecting it lands on a winner.
When you receive a proper day trading education you learn high probability technical patterns and fundamentals. And if you apply them with risk management, then you are not longer rolling the dice.
How Do I Educate Myself In Day Trading?
There are plenty of ways to receive a day trading education, you can learn a lot with free content on YouTube. For example, my new trader playlist has a lot of great content. Or simply check out our Free Beginners Course by clicking here. Or if you happen to need a little more than the basics then you can always check out our memberships for more advanced courses by clicking here.
You can also read through my educational articles on this site and sign up for my weekly watchlist. This way you will also get an alert to join us on Free Chat Mondays. By receiving a day trading education and learning today trade one helps their chances of becoming a profitable trader. Because now they know at a minimum the basics needed to start stock trading which already puts them ahead of a gambler rolling dice. Hoping to get lucky in a casino or worse. Hoping to get lucky buying a low float stock at a random level and hoping it bounces back.
So, is Day Trading like Gambling or Not?
The difference between a gambler and a day trader is simple. A gambler plays a game of chance for money hoping that they get lucky and win money. A day trader has a completely different approach to their strategy. The day trader attacks each trade with a trading plan containing a predefined risk. A proper entry, proper size, and profit targets all before they even click the buy button. All the while the gambler just put some money on the table and rolled a dice and watched and hoped.
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