Stock Trading Quick Tip – Is Stock Trading Gambling?

Stock Trading Quick Tip – Is Stock Trading Gambling?


(words slamming down and futuristic chime) – Hey it’s Clay Trader at claytrader.com. Obviously I am not at
the chalkboard right now. This video I want to
get a little interactive so we’re outside in my front yard. Also excuse the attire. When you trade from home,
when you’re your own boss and there’s no dress code
or anything like that you can wear whatever you want. To be honest, usually
I wear less than this but I don’t want to get
the cops called on me. So I figured, hey, I
better put on some clothes. Today’s topic is just answering a question in what I think is a very basic way. But you see it all the time:
is stock trading gambling? People say “wait a second,
you hold on to a stock “for just a few minutes and then you sell? “Wait you’re telling me
you’re looking to buy a stock “and sell it two hours later? “Wait you only hold a stock for one week? “No, you’re supposed
to put money in a 401k. “You’re supposed to put it in an IRA “and then you just let
the next 30 years go by. “I’ll hand off that trading stuff. “It’s very speculative. “It’s all gambling, no control over it. “It’s just very risky.” The thing is that most
people don’t realize is we are all trained; we all learn how to trade as children. In fact it’s probably one
of the first things we learn how to do. You’re maybe thinking “how is this possible? “What are you talking about? “I just got started with trading.” Well trading and the
reason it is not gambling is because you can gain an edge. Think about it, when you
go and cross the street, there’s a couple different
things you could do. The first time, this is my
driveway, this isn’t the street. But I’m gonna just, so put
on your imagination cap. I’m about to cross the street. Watch carefully; what do I do here? Alright, now let’s try another time. Now what do I do when I cross the street? So what was the difference there? The difference is the thing
we learned as children. Look both ways before
you cross the street. But why are we taught that? Why are we taught to look both ways before we cross the street? Because it’s a rule that gives us an edge. An edge over what? An edge over getting killed
or getting severely harmed. That’s all trading is. Trading has strategies; it has rules. If you follow the rules you get an edge and you are not guaranteed
to not lose money, but you can tilt things in your favor. Just like if I looked both ways, I’m still not guaranteed
to not get hit by a car. I could trip on the ground
and fall and then get hit. Or something crazy could happen. There’s no such thing as a guarantee. However, I vastly improve
my odds of not getting hit by a car by just looking both ways. That is how trading works too. There are rules; there are strategies. Now granted you have to teach yourself just like you have to
learn to look both ways. You have to learn to apply rules. You have to learn what these rules are. But once you learn them, it can be applied and you gain an edge. Gaining an edge is what
it’s all about for me. My looking both ways in the stock market is through technical analysis and charts. That’s what I teach. That’s what makes sense in my mind. Whether or not you want to use charts or maybe another means, that’s up to you. The point being is you have to have rules. Lot of people come back and say “well you look at the stats. “Only 10% of people that trade actually “succeed and make money,” or whatever the current stats are. First off, 10% that still
shows that it can be done. But how can it be done? It can be done with rules. There’s professional poker players. How do people that play
pokers, the same ones, always get deep into the tournament? Because poker is all about
rules and gaining an edge. All those poker players
have rules in their heads. They’re following different things except it’s not trading, it’s poker. It’s not crossing the street, it’s poker. The same for stock trading. You can gain an edge
and it’s not your fault, it’s not my fault that 90% of the people decide, “hey, I don’t
want to look both ways “before I cross the street. “I’m just gonna get hit by a car.” Most people who trade
stocks do get hit by a car because they don’t have rules
or they don’t follow the rules or they just never bothered to even learn. They don’t want to invest in to education. They don’t want to
invest to learn the rules of how to look both ways. Is stock trading gambling? Yes, for most people it is. Why? Because they don’t look both ways before they cross the street. However, learn rules, learn strategies. Invest in to your education. Look both ways and it becomes
a much safer thing to do. I hope all that makes sense. Just remember before you’re
about to enter into a trade, ask yourself “am I looking
both ways?” And you’re saying “not really, I’m just
kind of randomly buying.” Then, you know what,
that’s a good sign that you don’t have any rules in place. You don’t have a strategy in place. That is the first and foremost thing and step in the direction
that you want to take. If you enjoyed this video I
want you to do a couple things. First just click the
like button down below if you’re watching this on YouTube. Little things like that go a long way. If you’re watching this on my website then leave a comment below. Like I said take a few seconds and little things like that go a long way. It shows that you’re interested and finding these videos helpful. I’ll keep making them as
long as that’s the case. So click the like button
or leave a comment. Also subscribe to my YouTube channel. That’ll keep you up-to-date
on these quick tip videos, my live-trade videos and then just general chart-analysis
videos that I’m doing. That way you can keep
up-to-date with all that is going on around here. So thank you again for watching. Remember look both ways
before you cross the street and trade without emotion. (whipping and flipping of words)

12 thoughts on “Stock Trading Quick Tip – Is Stock Trading Gambling?”

  1. The BS in your teachings/presentations and technique is non existent. That's a good thing!! Thumbs up Claytrader

  2. Thanks for all you do – I learn from all your videos – do you have any training that focuses more on recognizing candlestick signals? I know you do a lot with resistance and support levels – I'm new to all this but I think a combination is akin to looking both ways before crossing the street of trading. Happy holidays.

  3. I like how you state that trading is not gambling. Then you compare it to "Professional Gamblers" … You know if you ask a professional gambler if what they do is gambling they will say NO only armatures gamble. They work hard on there craft to make a living same with trading.

  4. Thanks Clay. I recommend your videos to a lot of people as you take the time to explain some very simple but still worthwhile principles. For new traders, these videos are very handy as they can align their expectations to reality a bit faster and spend time on their education before they book in a test drive at the Lambo dealership. Keep them coming!

  5. I started watching ur videos just recently only Sir. I have to tell you , you are very good at educating others. It's an Art n U r a Master of it. Thanks.

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