Are you a successful trader or a risk taker
Posted: Nov 24, 2017
Who is a gambler? Is gambling healthy for you financially and mentally? Well, the gambler is someone who is addicted to gambling. To be honest, gambling isn't healthy mentally and financially. If you are gambler you will not think about the money you are losing and you would be addicted to gambling which is not good for the brain. Likewise, there are traders who do not trade the market but gambles the market. The traders in the United Kingdom are aware of the way they trade and they know the limit. They do not become addicted to the market because they have the control. On the contrary, the naïve traders in the market are not so experienced to control the addiction. They do not think about the addiction level instead they enter the market with the intention of making money and trade as if it's a game. If you enter the market you should think whether you are a gambler or a successful trader. Actually, a gambler will be able to be in the market for a short-time because sooner he or she will end up wiping out the account as a whole. If you have the mindset of a gambler you should try to overcome it if you want to become a successful trader.
Trading is all about dealing with your losing trades. If you start taking a big risk with a hope to make huge money then you are walking down the wrong path. You need to ask yourself how you much money you can lose with confident. Based on your answer you should develop proper money management system which will help you to deal with your losing trades. In the financial industry never take too much risk in any single trade since it is often considered as a suicide mission. Learn to trade with managed risk and consider this industry as your business opportunity.
How to know whether you are gambling or trading
There are some traders who do not even know whether they are gambling or trading. So, how will you know whether you are gambling or trading? Actually, there are few ways to identify whether you are gambling or trading. You should think whether you are using a trading edge or not. You should think whether you have the proper online trading platform or not. You should think about the percentage you risk. Do you risk more than you can afford to lose? If you are using a trading edge, if you have a proper percentage of risk and if you are risking only the amount you can afford it means you are not in the category of the gamblers. Usually, the professional traders see the market as a business but the naïve traders do not consider it as the business. The naïve traders or the ones who are addicted to trading consider the Forex market as a money-making machine. If you have a trading plan it can differentiate you from a gambler because gamblers will not have a trading plan.
What to do if you are a gambling
It can be painful to know that you are gambling but do not let the pain overtake your interest towards the market. The moment you realize that you are gambling the market you should try to cease trading for some time and then try to control the addition. Once you feel like you can trade the market without getting addicted you are on your way to becoming a successful trader.
What if you think of a professional
If you think like a professional trader you will be able to protect yourself from falling into the category of gamblers. A professional trader will not consider Forex as a game instead they will see it as a business. Moreover, they will manage the risks properly unlike the naïve traders.
When you are considering your subject’s role in that time ask yourself.