Sunday, May 19th
Last update:02:36:55 AM GMT
Psychology 1 Trading Psychology 1
The difference between gambling and speculating is in how risk can be managed. Managing risk is what separates a “trade” from a “gamble.”
To speculate comes from the Latin word, “speculari” meaning to contemplate, to look at or to observe.
That is what traders do. They examine an opportunity, contemplate its outcome and act on their intuition and instincts. If they are wrong, they cancel their position and then re-examine the opportunity.
By now, you probably sense that the “Artful Trader’s” skill sets are interrelated.
It is surprising how so many people are prepared to trade their hard earned capital in situations where they have very little knowledge.
Having insufficient money in a trading account is one of the biggest factors contributing to the trader’s failure. Unfortunately, it is usually true that “the rich get richer while the poor get poorer.”
If you don’t know where you are going then any road will get you there!”
~Alice in Wonderland
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