Dapo willis

Trading Vs. Gambling: The Battle 
Phase 
Trading and gambling are terms that call forth numerous 
reactions among traders. In as much as gamblers see their 
craft as a way of trading, traders feel they were not needed to 
be called gamblers. 
So these are the issues many traders face, and the truth is 
only a thin line separates these two concepts, "trading" and 
"gambling." That thin line is termed "
odd probability
." 
But the facts remain the same: trading and gambling all lie in 
the same process but with a different approach, psychology, 
and possible outcomes. 
So, what differentiates a trader from a gambler, and how do 
you know if you are trading but not from a gambler's 
perspective? 
Before I answer that question, what does the term 
“gambling” mean? 

---

The Millionaire Trader's Handbook 
Page 11 
The Britannica blog defines gambling as "
the staking of 
something of value, with the consciousness of risk 
and hope of gain, on the outcome of a game, a 
contest, or an uncertain event whose result may be 
determined by chance or accident or have an 
unexpected 
result 
because 
of 
the 
bettor’s 
miscalculation
." 
To clarify this, we dug out phrases like 
risk and hope of 
gain
, 
results determined by chances or accident
, and 
better miscalculations
. 
So how do all these fit into the world of trading? 
Here is the deal: trading involves using historical price action 
to predict the current price movements based on certain 
long-term analyses, either with technical analysis or 
fundamentals. 
When trading, we base our analysis on key factors such as 
technical analysis, demand and supply zones, fundamental 
analysis, Fibonacci rules, etc. 
However, with gambling, we rely on predictions and 
justification based on hope without any backed-up data to 
support our actions.
All decisions in gambling are based on hope, which is why 
the casino always wins over the players. 
Do you know why the casino always wins over the players in 
the long run? It's because of the odd probability I mentioned 
earlier.

---

The Millionaire Trader's Handbook 
Page 12 
The odds of a player winning are always lesser than the odds 
of the casino winning. The casino is designed to limit 
payouts and increase the odds of more stakes, or else they 
would have shut down due to funding a while ago. 
The same principles apply to all other forms of gambling, but 
with different sets of rules. It's worth noting that gambling 
organizations make a lot of money because they change your 
perspective towards trading by making you think it's easy to 
make a million dollars by staking as low as $100 or $10.
However, this mentality is far from the truth in the trading 
world, and it's the wrong way to start. If you want to make 
more than what you put in, you need to understand the 
concept of a successful trading career.

---

The Millionaire Trader's Handbook 
Page 13 
If the market takes more than you put in, you're gambling. 
But you're a profitable trader if you make more than what 
you put in.
To differentiate between trading and gambling, it's not just 
about making more than what you put in; several other 
factors are behind it.
I'll cover these factors in no time. First and foremost, it all 
begins with the mindset.