Read the previous post: Stock Trading: Between Analysis and Gambling? - Part I. So, in practice is stock really like a gambling game? Remember, what I said was "In practice", not theory. In theory, there are many educations that teach stock investment will produce... blah blah blah.. But, what about in practice?
In Part I, I gave you an example of a travel business. If you want to have a travel business, the concept is the same as when you are in the stock market: you have to have a PLAN. Remember, planning does not guarantee you to be 100% sure of profit, because you can not be sure what happens in front of you.
However, planning will help direct step-by-step from your decision, so you don't get lost and carelessly make decisions.
Playing stock must also have a plan. If you play stocks, at least you should have a basis to buy. Why did you buy? Why did you sell the stock? That's what separates stocks from gambling.
If many people say that playing stocks there is a luck factor, in any case, actually we can be affected by the lucky or hockey factor. Because once again, we all can never be sure of the future (what happens after we buy the stock).
You and I can only predict (plan a decision) based on the most accurate analysis, supported by available data. So, if you are a stock player, then you just buy random stocks, you can be sure you will lose big.
Just imagine, with an analysis of your guesses you can still miss, especially if you are trading carelessly. Playing stocks can actually be said to be the science of guessing the direction of the price. The difference is, in playing stocks, there is planning and analysis in everything.
