Are You a Gambler or a Trader?

Here is a quick checklist to see if you are a bad gambler or a good trader:

  • Gamblers have a disadvantage to the house, good traders have a  system that gives them an advantage over other traders.
  • Gamblers always leave the casino broke no matter how much money they are up at any given time, good traders make money consistently.
  • Gamblers risk money randomly, good traders risk preset amounts of money on each trade.
  • Gamblers do not understand the odds against them, good traders understand the risk/reward ratio in every trade.
  • Gamblers enter a casino with no understanding of their risk of ruin, good traders manage their risk of ruin so it is close to zero.
  • Gamblers use emotions to make decisions, good traders use a trading plan for each decision.
  • Gamblers have ego problems when they are winning, good traders are humble while winning.
  • Gamblers go all in to win big, good traders trade just big enough to make a meaningful profit.
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