Few days before, I read a article on Binance Feed where a content creators said if we put Stop Loss, then trading would become Gambling.
I got surprised while reading that, as per my knowledge Trading and gambling are two different activities, although they do have some similarities.
Trading involves buying and selling things like stocks, bonds, commodities, or currencies with the goal of making a profit. Traders usually do research, study market trends, and make informed decisions based on factors like how well a company is doing, economic indicators, or events happening around the world. They often use different strategies and techniques to manage risks and try to make as much profit as possible.
Gambling, on the other hand, is more about games of chance where the outcome is uncertain and depends a lot on luck or random events. Examples include games like roulette or slot machines in a casino, or betting on sports.
When you gamble, the results are mainly determined by probability and odds, rather than doing research or making informed decisions.
Although trading and gambling have some similarities, trading is generally seen as a skill-based activity that requires knowledge, expertise, and discipline. Successful traders rely on things like technical analysis, fundamental analysis, and risk management to make smart choices.
Gambling, on the other hand, is mostly about luck. However, it's important to note that some trading practices can resemble gambling when traders take big risks without doing proper research or make emotional decisions.
To be a successful trader, it's important to approach trading with discipline and make well-informed decisions, rather than relying solely on luck.
I hope now you can differentiate between trading and gambling. Without Stop/Loss trading does not become gambling. đ