how do I know when i am gambling during trading?

@liam_calgary - 8 months ago - Risk Management

So, people always say there is a thin line between trading and gambling and i agree. I also think there are many times we as traders unknowingly deviate from trading and begin to gamble. So, my question is what are the telltale signs that leaving trading land and drifting into gambling?

@maasai_princess - 8 months ago

Nice question. I think the moment you see a candlestick pattern, and you just jump into the market without waiting to see a confirmation candle, then you are gambling. Even if you see a bearish engulfing pattern that looks enticing, you should wait for the next 5-minute candle to form in the upwards direction before you jump in.

@yokoyi - 8 months ago

Hi @Liam, my own take on this subject is that if you find yourself thinking too much before you place a trade, then you are likely not sure of the trade and are about to gamble. You should not have to think too much if you have a good strategy on ground. Since you already know what you are looking for, once you see it, you place your trade. Overthinking means you are unsure of what you are about to do and may be in the brink of gambling.

@headies25284 - 5 months ago

You are gambling in trading if you don’t have a trading plan. A trading plan defines your trading attitude. It covers your strategy, entry and exit point. The amount of funds to risk . Your trading plan also states when you should stop trading whether you are on a winning or loosing streak. If all of this are not in place, you are basically gambling.

@weilo_daniel - 5 months ago

When you dont have specific/objective entry and exit parameters, you will definitely be gambling because anything goes for you. You will chase every trade and expose yourself to unnecessary risk.