Investing, day trading, if you're a professional in either of them, the question might sounds like a really stupid one. Of course there's a difference. One is a game of luck while the other one is based on skills. And I can't really argue with that. However, the fact is that roughly 90% of investors, professional and amateur, lose money.
There are different reasons for that, such as over-estimation of one's ability to invest and knowledge in the field, plus the second part is lack of discipline, basing the decisions on emotions like greed and fear, instead of processes.
And if you do that, investing becomes sort of gambling. A game of luck. And if you look at it like that, whether you're trading in a stock market, making trades with foreign exchange, or dreaming of winning big via lottery usa
, the odds start to become the same. Of course, by investing you stand to win less, depending on your starting capital, than with lottery, but depending on how you do it, they can end up being very similar.
So if you want to become a real professional trader, there are a few important things you need to consider.
1. Do you have the discipline?
Do you have discipline in life in general? If the answer is no, don't even go there. Start by improving your discipline and come back to the trading idea in a year or two. Lack of discipline, and being emotional is a sure no-no for successful traders.
2. Do you have enough capital to invest or trade with?
And can you afford to lose it? The second question is important because if you can't afford to lose it, your emotions will kick in, and as I said, it's no good in stock market. The first question is important because there are fees related to trading. And if you want to make very small trades the fees will work against you.
3. Do you have the knowledge?
Obviously, your skills will come with time and experience, but in order to get started at all, you need to learn the skills. You need to read the books. You need to find yourself sources you get your information. And so on, so on, so on.
Don't let trading be like a lottery. Or if you do, just play the lottery instead. It can be emotional. It doesn't require skills. And it's cheap.