1. Trading is a profession where you enter a professional business to make money using your analytical skills.
Gambling is an activity that you perform for amusement in the hope of making money.
2. Trading business is like any other business where you invest money, calculate your risk, and trade with people making a profit and loss.
Gambling is betting on an outcome using the art of pure speculation. You may win or lose.
3. Traders operate using their minds. They have a trading system, fixed position sizing, researched entry point, stop-loss and target.
Gamblers play the game with emotions. They don’t have any strategy. All they’ve is hope that today’s market will act in their favour and they’ll make money.
4. Traders think in terms of probabilities. They don’t get attached to a single trade. They accept the risk they’ve taken and treat it as a business expense.
Gamblers are emotionally involved with every trade. They’re attached to profits and hate losses.
5. Traders understand the nature of the trading business. They never attempt to become a millionaire overnight. They focus on understanding the nature of Mother Market.
Gamblers have no awareness of the trading business. They wish to become a millionaire overnight. They focus on learning the tricks of the trade that can make them rich.