Trading vs Gambling: know which you are doing!
Most professional traders will tell you that there is a very big difference between trading and gambling. Use the following table to understand the differences, and make sure you’re on the only reliably profitable side of this crucial division!
|0.) "Alpha decay": You win for a while but it will never remain consistent for long.|
|1.) In absence of actionable guidance on how to improve, or any return on lengthy efforts to discover a way to, the whole thing begins to look like a game of chance where "improvement" isn't actually possible.|
|2.) If improvement is possible, failures ought to be teachable. But in this, 99% of what you "learn" turns out to be about as reliable as a coin flip. Winning is dependent simply on time in the game, rather than on learned info.|
|3.) Some claim it's a real discipline, but it cannot be taught, other than "forune cookie wisdom" that everyone has plenty of to pass along. |
|4.) In analyzing it, everything is ambiguous. Anything can be read as confirmation or not enough confirmation. You can find a million different points it's likely to retest (to deny your thesis, set a stop, etc) and no reason why one is more likely than any other. Anything can be read as an "trend" depending on timeframe.|
|5.) "It seems right to me" and "It's always worked before" are foundational provisions, just like in a religion or a superstition, not like a science.|
|6.) You're trying to profit off a chaotic system, no cause and effect... overwhelmingly similar circumstances may give rise to vastly different results, for unclear reasons|
|7.) Consistent profits are very, very rare. Inconsistent results are common.|
|8.) Knowledge, understanding, technique, and analytical skill are only ever partially, inconsistently, and variably useful.|
|9.) Most people, regardless of intelligence or skill, lose their shirt.|