Until now we always talked about trading when it comes about to earn profits binary options, forex etc. But there is another way to create a capital gain, and it is gambling.
Gambling means ‘to take a risk in the hope of gaining an advantage or a benefit’. Usually this is a term used in casinò. Monetary transaction are involved in both case, but the difference is ‘how’. What is the difference between a Professional Trader and a Professional Gambler?
The first thing to evaluate is both the psychological/emotional aspect. I think this is what differentiates the two figures most and it is the cause of all the other differences.
What a Professional Trader do the most is to prepare is mind, but there is not such a thing in Gambling. The moves of a Professional Gambler depends mostly on luck, his God’s name is ‘chance’ and he likes it. This is what a traders will never do because he need preparation, he needs strategy, he needs a trading plan.
A trader needs a lot of information related to the market and the position he is going to enter. He thinks about the good and the bad scenario before going into traders and control their adrenaline because he is going to use his money to earn other money.
Gamblers are excited when they are facing unknown scenarios, they feels intense emotions while trading and they are focused on profits and rewards most of the time.
Gamblers are addicted to trading and they get too much enjoyment out of it. Even when they are losing money they are thinking that next time will be different. They ignore the risk involved on every trade.
This does not mean that Gamblers are not prepared. To become professional they must have a vast knowledge of probabilities.
Since the trader ‘likes’ to be more prepared, they are more connected to the world because trading includes an awareness of external events that will affect the market.
On the contrary, a gambler is more self-contained since he is playing against other individuals and the game is not influenced by outside events.
A gambler pays little to no attention to risk management and a lot of attention to the rewards because they are stimulated by the adrenaline and the idea to gain a capital.
Traders, instead, pays a lot of attention to the risk management rather than the possible outcome. They are disciplined and they treat their trading as a business. A professional trader has to be emotionally neutral because he cannot be caught up by a winning trade or even a series of winning trades.
The real conclusion is that everything depends on the individuals. There might be more serious gamblers than traders or more inexperienced traders than gamblers.
Both of them have a certainty, they did not get rich very quick but they create their capital gain time after time.