When we hear the word ‘Stock Market’, the first thing that strikes our mind is that ohh it is a “Big time Gamble”.
Entering the market with this thought process is risky. You tend to lose and treat the market as a place for gambling. And this negative notion is mostly attached to it by those people who lack the proper understanding of the stock market.
Let me tell you that this is very much possible and practical to enter these markets even if you do not have any experience in it.
Wondering how?
There are market experts, advisors, or market technicians who help with the buy and sell of the stocks. These people will act as your life jackets or saviors in the ups and downs of the market so that you do not drown yourself.
So if I say you can break these stereotypes by learning the skills and staying disciplined in your trades, you can have a bright path in this field. Such kind of handling would be called an art. Contrarily, by Gambling, we mean that people tend to buy penny stocks whose prices are very low. They do not check what the company does and just start to trade in it because the masses are doing so.
Here checking out the fundamentals of the company is imperative. I mean you can’t just buy 100 quantities of ABC share just because it is 8 rupees per stock. You may think your money would go multiply it could not be the case until or unless the company is promising.
And if the result you were looking for does not come up as expected then you tend to be furious and frustrated and start to trade frequently and end up with more losses. And in the hope of covering those losses, we are bound to make more mistakes and getting ourselves stuck into that vicious cycle where we do not know how to untangle the knots in the threads that we have created. As there is no point where we can adjust the position or trade as there are no rules that are to be followed. Gambling is clear either you win or lose you do not have a scenario where you can end it and look for other options that could be used for benefitting or appreciating the capital invested.
On the other hand, Trading is an art that is done in a systematic way to enter these financial markets. It is done with proper guidance where when you enter a trade you know the entry & exit of it with the help of Stoploss & Targets ,if either of them is hit we need to square off the position. And also you do not bet on the same thing every time and look forward to other opportunities to be encashed. The most important thing that you should remember is to accept to be the wrong and do not think that I am always right ,do not go against the market trade the result of it is bound to be negative. It is not that you will always be in a win-win situation after you have learned the skills to trade but yes you will not end up losing big and there would be calculated risk and reward on the capital that you have invested. In trading, you can take a calculated risk on the capital but you will not end up losing everything in gambling, it is very much possible that you end up with the capital.
So to conclude I would say gambling over a long period would result in deteriorating your wealth also is injurious to your wealth. And on the other hand, systematic trading for a long time frame can create phenomenal wealth. Also, discipline and consistency is the 2 most important ingredients that are required for every favoring work. Here is a famous quote by
