If you are a businessman, will you consider all the risks and do proper research before committing to a deal? The answer is probably yes. But do you also treat your trading as a business and exercise the same diligence? The obvious tell-tale signs are : 1) You do not commit to learning proper trading methods. 2) You buy and sell on your whim and fancies or on some latest hot tips. 3) You do not have an exit strategy 4) You do not commit any proper preparation time to your trading. If your answer is yes to most of the above, then you are treating your trading like a hobby or even gambling.
I am amazed at the number of people who call themselves traders or investors but do not commit the time or effort to learn proper trading methods. What is more shocking is they are risking their hard earned money that is meant to be for their retirement nest. If you treat your trading like a business, you will want to give yourself an edge and be well equipped with the proper knowledge. You will study your risk exposure and take the necessary steps to protect yourself if things go against you. Do yourself a favour this year and commit to learning proper trading strategies that are tried and tested. With a sound trading strategy and proper mindset, your trading will no longer be like a hobby or gambling but a viable business that gives you continual positive financial returns.