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Trading or Gambling? There is a difference.

Are you trading or gambling? Ask yourself if you have a defined plan entering the trade or if you'll 'just see what happens.' You can create trade plans on the fly for day-trades once you understand how to read support/resistance levels, flow, and understand timeframes. Swing trade breakouts are relatively straight forward. If you enter on the 40 breakout, then a level slightly below is your risk guide until the trade moves green. Then focus on moving your stop up as the breakout progresses. Any swing trade I enter, I'm willing to turn it into a day-trade if it goes against me. Cut losers off, let winners run.

Successful long-term trading takes a sound strategy that can be replicated consistently. Sure, you'll go through ups and downs, but the goal is to be successful long-term. If you are trying to strike it rich quick gambling on a penny stock or an earnings trade, you may get lucky in the short-term but is it a real strategy that can be used for consistent profits? Probably Not.

Gambling 101 vs. The Power of Options and knowing your go-to setups.

If you don't have a trade plan using setups (what the hell is a setup?) that work for you; you are just gambling. You'd have the same odds; maybe actually better odds depending on the crap you trade, and probably more fun just hitting your local Roulette table betting Black or Red.

You have to look at trading like a job. You usually don't get to start a job without some type of training right? Why do you think trading should be any different? Otherwise, enjoy your night out at the casino!

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