Trading, Gambling, or Love, What keeps the Passion On?

Have you ever wondered why you always disagree with other traders around you? Well, it is quite apparent from various researches and surveys that every trader has a different mindset, perspective and of course, speculation matters a lot! A stock or commodity has a particular chart and every trader will have a different judgment towards the further move and that makes ground for his financial decisions.

Most often, we find our judgment rational, while the observation of other traders as temperamental finding and consider them weak. We might also haul over the coals many times and even end up ridiculing the very idea that spurs in other trader’s mind, no matter how religiously we follow a similar notion when it’s our own.

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Everything looks yellow to a jaundiced eye!! But to a trader, all’s well as long as he’s still in for the game. There’s no strategy that can be ‘just perfect’ for trading and there are assumingly no do’s and don’ts in stock markets; as the wide trading world has a lot of space to assimilate anything– at any moment.  Your strategy might make you filthy rich one day but to another trader, the same strategy can bring him to rags any moment. Rude, but true!

Yes, this ‘rich to rags’ works both ways. If your perspective isn’t rational enough this time, you might become the next hottest topic for mockery. Trading is a funny game. Well, game, yes we can surely associate the profession with game, and in fact gambling too! And here, we don’t lay bets relying on our luck, but find a convincing reason even for a tiny trade. But for times it doesn’t work out, well, we always have our luck to be blamed.

When we relate trading to gambling, we also analyze the capacity of a trader to speculate. Every trader has a tendency to risk, but the intensity varies from person to person. Be it gender, age or profession, every aspect of you plays its part in determining your risk taking and risk bearing capacity. For instance, as our age progresses, our risk appetite falls and we become more risk averse. Apart from age, it is found that women tend to be more risk aversive when compared to men under same circumstances.

There are some individualists who prefer to carry out extensive research before venturing into each trade and hence take lesser risk while in this profession. Adventurists are susceptible to be more ravenous for risks and they walk an extra mile to explore the potential; while celebrities are likely to go the easier way to grab attention and they easily fall prey to jabbering brokers. But standing apart from the crowd, there are some balanced personalities who analyze all facts, figures and details before they leap into a conclusion.

Apart from all realistic approach and right trading strategies, many traders often go down with naive steps out of emotions, ego and high hopes.  Trading has many traits similar to gambling, and that’s why we relate the two so often. Hence, trading is often swayed away by sentiments and that bear out the truth in saying ‘control your emotions, before they control you!’

Falling in love with the company you invest in becomes a tendency as soon as you really get your brains into the scrolls. The pulse races faster than the ticker, or we can say- the pulse is actually driven by the ticker and a non-trading day makes you realize that the markets are something you miss a lot when not around. Isn’t this some kind of love?

Well, you might have had similar hot flushes years back, may be in your teens, but trading brings back those exciting days when a lot depends on just one thing around you and you kind of start spinning your world around your passion. You plan your holidays depending on the market scenario, you keep taking a sneak peek at your screen even in the busiest and the most important business meeting and trading finally becomes everything all over your mind and an important part of your daily routine.

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