Tick trading or gambling — Why does it matter?
There is a fine line between tick trading and gambling. Tick trading can hardly be called trading in the traditional sense. As each trade literally lasts mere seconds, it’s more akin to a spin of the roulette wheel, aka gambling. Is tick trading gambling? And why does it matter?
Trading vs. Gambling
The main difference between trading and gambling is the degree of predictability and control at the hands of the trader or punter, whether perceived or real. The mindset, the expectations and the perspective of the trader also come into play.
You may choose to see yourself as a trader because of the negative connotations to gambling. If you think you are taking a chance, the odds are good and you could be lucky, then you are thinking like a gambler. And we know only too well how that usually ends for most people.
If you think the odds could be improved and you look into ways and you devise and test strategies to improve the odds of winning, you are moving towards becoming a trader. Keep up the research and the testing. All you need is a solid trading strategy that you can count on to get you to the next level.
If you are new to tick trading, did you know that the BonusTrade app comes with a free demo account with $10,000 of virtual trading funds for you to practice trading with? It’s good to go as soon as you download and install the app. No sign up necessary.
Why it matters
It matters because if you set out to trade with a proven strategy or method, a well-thought out trading plan and demo results under your belt, you have a much better chance of staying in the game for the longer haul and even building up your account balance. After all, tick trading is not rocket science.
It doesn’t matter if you are tick trading micro trades that last seconds or swing trading trades that last for days, the mindset of a trader will stand you in good stead. You would know when to walk away with money in your pocket so to speak, rather than losing your winnings as gamblers often do.
Knowing when to quit, for the session or for the day, is crucial — this should be a consequence of either meeting your trading goal or triggering your stop loss limit. It sets you apart from gamblers who either don’t have an exit plan or don’t have the self-discipline to walk away at the right time. That is why for gamblers who don’t know when to quit, the house always wins.
If you have been tick trading for a while, whether demo trading or with real money, and if you have not been winning as often as you would like, take a moment to take stock of your mindset, expectations and perspective. More importantly, your internal dialogue when you are trading will tell you where you are at.
The tick trader’s mindset
Tick traders are in it not just to win but to take the money home. Remember, the bottom line is always cash in your pocket and being ahead. It’s not enough to accumulate a large balance in your trading account. Your cumulative winnings only count when they become spendable cash. With that in mind, it makes sense to only keep as much as necessary in your trading account to fund your trading activities. Withdraw your winnings often.
The tick trader’s edge
The serious tick trader has an edge — a proven winning strategy and a crafty trading plan that is mathematically proven to get you ahead and to build up your account. It’s a numbers game and you need to have the numbers all figured out to give you that edge. Here are a couple of articles that explain how the numbers work to give you an edge.
That edge can only be maintained with the self-discipline of always following your own trading rules!
You will find many more articles in this blog that go into breaking down the numbers game of tick trading when it comes to devising and testing trading strategies, formulating a trading plan and money management. Have a good look around.
Originally published at https://www.bonustrade.app on October 30, 2020.
