Is Day Trading Gambling?
First, we need to define gambling and the dictionary definition of gambling is “playing a game of chance for money”. Now let’s define what day trading is and according to the dictionary day trading is defined as the buying and selling of securities on the same day, often online, on basis of small, short term price fluctuations. So right off of the bat we see that gambling and day trading is not defined closely at all and in fact, one is a game while the day trading is a profession.
Why Do People Call Day Trading Gambling?
I believe people call day trading gambling because they lack the day trading education to be
successful at day trading. The bar of entry to day trading is very low in that all you need is some money and to open a trading account with a broker like Webull and you are ready to day trade however you have no day trading education.
Because of this lack of day trading education, you begin to randomly buy penny stocks at what you preserve to be lows or breakouts thinking the stock with either bounce or continue going higher but you have no idea about technical analysis or fundamental analysis. Because of this lack of trading education, you are in essence gambling just rolling dice hoping it lands on a winner.
When you receive a proper day trading education
you learn high probability technical patterns, how to read fundamentals, you learn to trade
stocks not roll a dice.
How Do I Educate My Self In Day Trading?
There are plenty of ways to receive a day trading education, you can learn a lot with free content on YouTube, for example, my new trader playlist can found here at this link.
You can also read through my educational articles on this site and sign up for my weekly list this way you will also get an alert if I ever come out with a day trading course or some other type of service. By receiving a day trading education and learning to day trade one helps their chances are becoming a profitable trader because now they know at a minimum the basics needed to start stock trading which already puts them ahead of a gambler rolling a dice hoping to get
lucky in Vegas or worse yet hoping to get lucky buying a low float stock at a random level hoping it bounces back without knowing how to establish a trading plan.
In Closing the difference between a gambler and a day trader is simple. A gambler plays a game of chance for money hoping that they get lucky and win money and a day trader approaches their trading after receiving a day trading education. The day trader attacks each individual trade with a trading plan containing a predefined risk, a proper entry, proper size, and profit targets all before they even click the buy button. All the while the gambler just put some money
on the table and rolled a dice and watched and hoped.