# Are you a gambler or trader? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-27 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Gambler vs Trader: Understanding the Key Differences Meta Description: Discover the distinction between gambling and trading in market investments. Learn why discipline and strategy are crucial for success in online trading. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/are-you-a-gambler-or-traderhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img0297-365-1736844040680-compressed.jpg) By **James Trescothick**, Chief Global Strategist, easyMarkets If you are involved in market investments, especially online trading, you must ask yourself the question, “Am I a **gambler** or a **trader**?” To answer this question, you must first understand the difference between the two. Both make online investments but why is one considered a gambler and the other a trader? **The Gambler** For a gambler, the overall motive of trading is the adrenaline rush and the thrill of being “in the game”. They freestyle their trading by making momentary decisions for the sake of making them. Common practices of a gambler include: - Trading without a basis of solid information, [leaving them vulnerable](https://www.financedigest.com/finding-it-hard-to-recruit-good-it-security-managers-dont-leave-yourself-vulnerable-to-attack.html "Finding it hard to recruit good IT security managers? Don’t leave yourself vulnerable to attack") to the random nature of price movements. - Using 5 minute charts to gauge support and resistances. - Reacting to the latest economic releases without understanding prior market expectations, current [price flow or countervailing information on the asset they are trading](https://www.financedigest.com/euro-zone-posts-record-trade-deficit-in-august-amid-soaring-energy-prices.html "Euro zone posts record trade deficit in August amid soaring energy prices") on. **The Trader** For a trader, the act of trading is a craft they take time to learn and delve into its depth with informed knowledge and a lot of work and practice. Trading is not random; it is thought through and follows a strict action plan, which consists of a prudent [money management](https://www.financedigest.com/money-management-for-couples-navigating-finances-in-a-relationship.html "Money Management for Couples: Navigating Finances in a Relationship") structure. Common practices of a trader include: - Trading only calendar risk on a reactive basis. - Entering and [exiting the market](https://www.financedigest.com/analysis-oil-prices-turn-more-volatile-as-investors-exit-the-market.html "Analysis-Oil prices turn more volatile as investors exit the market") in a very disciplined manner. - Using 30 minutes, hourly, daily, [weekly and monthly charts to gauge support](https://www.financedigest.com/european-stocks-find-support-at-end-of-volatile-week.html "European stocks find support at end of volatile week") and resistance points. - Carefully calculating Fib retracement positions and making decisions only when multiple time frames confirm their analysis. - Having a full understanding of what is occurring in the markets on a daily basis and understanding the underlining [economic and/or political](https://www.financedigest.com/stocks-tumble-globally-on-raft-of-economic-political-worries.html "Stocks tumble globally on raft of economic, political worries") story driving the market and creating sentiment. The main and most important difference between a gambler and a trader is simply work. Like everything else in life, [success requires hard and work](https://www.financedigest.com/how-to-make-hybrid-working-successful.html "How to make hybrid working successful") and effort. Working hard is never a guarantee for winning, but as the old saying goes, failing to plan is planning to fail. Gambling has more to do with blind luck. Just take the case of the casinos and all those tourists visiting Las Vegas. They can probably attest to the fact that successful cases of blind luck are extremely rare, hence why Nevada’s most famous [city saw a hefty $25.2 billion revenue](https://www.financedigest.com/smart-city-kiosk-market-to-reap-excessive-revenues-by-2028-trends-and-forecast-by-fact-mr-investigated-in-the-latest-research.html "Smart City Kiosk Market To Reap Excessive Revenues By 2028 | Trends And Forecast By Fact.MR investigated in the latest research") in 2016. Trading, on the other hand, is a skill and for some people a profession. While luck has a small hand in most things in life, trading is about discipline, and understanding the importance of the information the market is constantly giving away, then using it in a plan fora potentialsuccessful trading. So ask yourself: “Am I a **gambler** or a **trader**? Who do I want to be?” --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---