Gambling when trading is always fun, satisfy your wish to get rich with a single trade. Just remember not to gamble too much. Keeping your game in check is something everyone should do.
So what do I mean by gambling? Well, you know those times when a stock has gone from $ 50 to $ .20 and you think they will rebound. Remember when you found a strong stock that you think it will skyrocket when your earnings are announced and that the out of the money option is only $ .15.
That is gambling. It is when you are throwing your money in search of huge unspeakable profits. Now, there is nothing wrong with betting on the stock market as long as it doesn’t become a habit and you manage your risk.
First, let’s take the management of your risk problem. When you trade, you should already be using proper risk management. By that I mean that you should never risk more than 2-5% of your account in a single trade.
If you’re gambling, you probably want to lower that level even further. For example, if you normally risk 2% of your account on a trade, you may not want to risk more than 0.5% of your account on a bet. Remember that you assume that you will lose all the money you play with.
Another way that you can determine how much you should bet is by simply wondering how much I am comfortable pulling. If .5% of your account is $ 300 but you are UFABET only willing to lose $ 100 on a bet, don’t trade more than $ 100. Throw away the $ 100, assume they are gone, but I hope you get $ 10,000 back.
Also, you should never get carried away with gambling in trading. That is not a good business strategy. You should only take a big risk once or twice a year, or whenever you find big rewards that are too hard to throw away. But any game you make as a trader must be small and distant.
If you are betting all other exchanges or even one in ten exchanges, you are betting too much. I’ll say it again, gambling is not a good business strategy, but it can be fun from time to time.