Trader or Gambler?


Traders or gambler?
I have to include this topic as fundamental because many are unaware of its role in world trade. In trading we have become a trader and not a gambler.
There is a story of Elder Alexander I always remember:
Elder daughter is  very good at playing backgammon. Then Elder challenging his son to duel with betting money backgammon. The children use his pocket money as her capital  to bet with Elder and Elder just use a small part of his money from his huge capital because he is very rich. He intends to teach their children about gambling and speculating.

At the beginning of the match so that the child always win so  her capital continue to grow Elder diminishing returns. At his peak confidence (overconfidence) Elder offers the new rules, which is double the bet on each game. Then there is what I call psychological Climax. The child began to lose, then at double the stakes, the child's stress, lose again, lose again, concentration is lost and without realizing his money vanished into the pockets of her father.
What can we learn from this story?
The child was a gambler, who rely on her  "feeling"  to compete, at double the risk of betting on who should bear the child both mentally and in real is great. Pocket money is a precious treasure for the child while the Elder  is not that much money means nothing, so mentally Elder has won first. At double the bet on the children get the mental stress of losing everything and it's breaking his concentration.
BIG BOYS have infinite treasure (mostly bankers), professional traders have a small dependence due to play other people's money.I repeat again, professional traders play other people's money and make money from commissions. They react more quickly because there is no great mental pressure.

PRIVATE traders ..... plays his own money as a child Elder earlier. Mentally we've lost first.

OK this is why 99% of traders fail in the capital markets.

Then how can we overcome our weaknesses? FUNDAMENTAL ANALYSIS

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