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ens of trades. If too much time goes by without "placing a bet," the gambler-impulsive style tends to get bored simply watching the quotes flash by. They begin to feel they're missing out on something. |
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Quite the opposite of the obsessive-disciplined and the doubter-timid types, the gambler just doesn't like the spectator role. Nor does he or she usually want to be bothered with learning about companies, fundamentals, or performance charts. All that matters for the day trader is momentum. If the stock is moving, there is money to be made. What else do they need to know? |
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In learning about the day trading scene, one morning in 1997 I was watching some day traders at a local trading firm enter and exit the same stock repeatedly through the morning. |
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Finally, I asked one 20-something with long, flowing hair what company he was trading. I was surprised to find out he had no idea what company the stock symbol stood for. All he knew (and needed to know for his purposes) was that it moved fast, so it was a good trading stock. |
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If life is a Big Gamble, this trading type is looking for the edge that will win the bet. They aren't afraid to put large amounts of money on the line. Nor are they concerned about using margin to leverage their bets. Margin for this type is just another name for a "marker" and leveraging their bets with the house's money. When things are going well, they are the most likely type to make big returns with their big risks. |
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Often, serious day traders like betting on the horses, blackjack, the lottery, or sports teams. They love Las Vegas and enjoy more than casual betting on the golf course, just to "make things more interesting." Not so surprisingly, a number of present-day top-notch stock and bond traders have come from a past of serious Las Vegas gambling and horse betting. I have had nationally recognized stock and bond traders sit in my office and tell me how they went from casino gambling to playing the markets. |
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When Active Trading Becomes Addictive |
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Since the gambling-impulsive trading type is the most likely to become the "minute" or day trader, he or she is also most likely to take the whole thing too far and end up with a form of gambling dependence. How do we know when online tradingdone either in a trading firm with others or in the privacy of one's own home or office |
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