The Stock Market is not a Zero-Sum Game like Poker where one person’s loss equals one person’s gain until you are not trading in Futures and Options, and if so – then it is more likely a zero-sum game excluding Charges.

So, You can’t just say that the Stock Market is like Gambling because you have something to test the past performance of the stocks, Analyze the Charts, and React to the News – hence in the Stock Market, you have something from which you can predict the next trend in the market so you can make some good returns, Unlike Gambling where you are just betting on odds.

Let’s Explain the Scenarios one by one,

So first Assume two people named, A and B –

Where “A” is somewhere an experienced trader who knows the power of charts and all the other technical Aspects.

And, “B” is a beginner who came to know about trading by seeing a YouTube video – where a so-called trader explains how you can make 1 lakh or 10 lakh a day by trading, or by viewing one’s profit screenshot of Trading on Telegram.

Now the question is who is going to make money from Stock Market Trading?

Basically who is Gambling and who is Not –

So let’s discuss the Scenario with Person “A” –

who is an Experienced Trader, trading based on Calculations, Analyzing Charts and News, Past performance of that Asset, Controlling emotions, and following the Proper Risk-Reward Strategy.

In this case, you have the data to fall back on, like you have the charts to analyze the stock’s previous trend where you can monitor how the stock has performed when its quarterly results are above the market expectation and how it performed when the results are below the market expectations.

You have different strategies to follow and predict the next market move like – Price Action– where you are properly analyzing the market and finding the related pattern or Candlestick to catch the next move – like a Double Top Pattern on the Resistance level – is almost predicted that market is going to fall from here, and by-chance if not, then you have your Risk-Reward Strategy implemented.

Here are some points to note to know that you are Trading in the Stock Market not Gambling –

These are some things that prove – you are trading in the stock market not Gambling.

Now let’s discuss the Scenario with Person “B” –

who is a beginner full of excitement of making quick money which so-called Finfluencers sell him from different social media channels – which is a million miles away from reality.

Now, he opens his Broker’s App and starts viewing the market and thinking of next move without any Technical Analysis or any Fundaments, just predicting that the market will go up from here as it has already fallen so much and placed a Long trade – now it’s totally upon the Destiny if he makes money or loses his capital, and there is a high possibility that he loses money the market will go either side from here, and he is also not following any risk-reward strategy because he is trying to multiply his capital.

Here are some points to note to know that you are gambling, in the Stock Market

These are some things if you are doing then you are totally gambling if you are trading in the Stock Market.

Example – When Trading is Gambling and When it’s not.

The first example is a Professional Trader who knows that when the Market is in an Uptrend then it’s going to GO UP. When there is a pullback he is planning a Long Trade.

In contrast, a newbie thinks that the Market is already at its peak so it’s going to fall from here, and when there is little pullback he places a short trade and loses money – and here he is just Gambling on the odds of the Market fall, which is almost not going to happen, but exceptions exist.

Conclusion – In this case, you are trying to predict the market’s next move based on past performance.

The second example is when the Market is Sideways – Then the Options Trader “A” sells the options to take the premium of the options buyer’s home, whereas Trader “B” is buying options thinking that the market will go up from here – but if you are a trader then you know that when Market is Sideways then – No matter which option you buy – you will lose money because of Time Decay.

Things that Make Trading Different from Gambling.

Trading is Different from Gambling as it can be evaluated based on your Skill, Experience, Knowledge, Patience, Emotion Control, Risk-Reward Strategy, Analysis, Interpretation, Past Performance of the Asset, and the best part is You have Full Control over your Capital.

Whereas Gambling is just a game of Luck where you do not have any control over your money, as it is designed to lose money and benefit the house like Casinos. In Gambling, you can’t predict the next move, as there is not any exact pattern there, you do to have past data to analyze, or you do not have control over your money as you only lose it all or double it. Just it.

Now it’s your choice whether you want to Gamble or Trade.

In my opinion, Trading is not Gambling, it is just Infamous because of some noob traders that enter the Stock Market on other Advice or by seeing huge profits on Social Media, shared by so-called Finfluencers – and lose their hard-earned money and then SCREAMING everywhere that Trading is a Gambling.

Raaz Aryan, Cup of Glory

If you want to stay away from that Trap of Stock Market Success then watch @ADigitalBlogger on Youtube where Aseem Juneja Exposes such Fake Finfluencer Time-to-Time.