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Tagged: Risk Reward Ratio
Return > Risk = business
Risk > Return = gambling.
The stanza “Stock trading is Gambling or Business ” depends upon trader’s perspective .
If the trader is able to calculate the risk – reward relationship, and if the reward is greater
than risk value , and if the trader initiates , then it is a business.
Instead if the risk is greater than reward value and if the trader makes it, then it is
purely a gambling.
Stock trading is Gambling and business .
Bullish – Business
Bearish – Gambling
Stock trading is a business and gambling and it depends on the traders knowledge and discipline. Stock trading is a business for the people whose expected return is greater than expected risk and its a gambling for the people whose expected risk is greater then the expected return
Depends on trader’s knowledge of the probability of the success of the trade. When he approaches the trade after sufficient analysis with a clear strategy, it is Business – otherwise a gamble
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