取引におけるギャンブル性を排除する方法

How to Eliminate Gambling Behavior in Trading


Trading is Not Speculation:
Eliminate Gambling Aspects and Move Towards Planned Asset Management

Trading is sometimes described as being "close to gambling." However, that is only the case when it is done **without sufficient knowledge or planning**.

Fundamentally, trading is a skill to "quantify and manage risk," just like investing.

Especially what prop firms evaluate is **consistent strategy, calm judgment, and sound risk management**, never gambling-like trading.

In this article, we will explain the difference between gambling-like trading and planned investing, measures to avoid gambling-like behavior, and important perspectives to keep in mind when aiming to become a professional trader.



1. What are the Characteristics of Gambling-Like Trading?

Common to traders who repeatedly incur losses are the following **gambling-like behavioral patterns**:

  • Lack of Planning
    Repeatedly entering and exiting positions in an ad-hoc manner without a strategy or rules.
  • Inadequate Risk Management
    Continuing to trade without setting stop losses until losses escalate.
  • Overconfidence and Bias
    Clinging to market predictions and ignoring objective data.
  • Mindset Aiming for a Quick Fortune
    Focusing solely on returns and neglecting risk.
  • Emotional Judgment
    Trying to recoup losses with reckless trades when on a losing streak.

All of these are **behavioral patterns that are not sustainable in the long term**, lacking "planning" and "reproducibility."



2. The Essence of "Self-Responsibility" and Misconceptions about Trading

The biggest reason why trading is often described as "trading = gambling" is that **many people move money without a strategy or knowledge**.

That is like participating in poker without knowing the rules, and **ultimately, it is the responsibility of the person who incurred the loss**.

Gambling-Like Misconceptions Lurking in Trading

  • If market predictions are right, you can win → Reality: "Management is more important than prediction"
  • Losses can be avoided → Reality: "Minimizing losses" is the correct approach
  • My beliefs move the market → Reality: "I am merely a part of the market"

It must not be forgotten that prop firms evaluate "consistent behavior and reproducibility of results," not "winning percentage."



3. Three Steps to Improve Gambling-Like Trading

Illustration of Three Steps to Improve Gambling-Like Trading: 1. Acquire education and knowledge, 2. Develop a clear trading plan, 3. Thoroughly implement risk management
3 Steps to Improve Gambling-Like Trading

To eliminate gambling elements and transition to planned trading, it is important to make the following steps a habit.

① Acquire Education and Knowledge

Having a **foundation for evidence-based decisions**, such as technical analysis, fundamental analysis, and risk management, leads to detachment from emotions.

② Develop a Clear Trading Plan

Formalizing entry/exit conditions, time frame, currency pairs, profit/loss ratio, maximum allowable loss, etc., and **trading by the same rules each time** generates reproducibility.

③ Thoroughly Implement Risk Management

  • Capital exposed to risk in a single trade is within 1-2% of the total
  • Standardize position sizing
  • Decide stop-loss conditions in advance

By combining these, it becomes possible to break away from **emotional and intuitive trading**.



4. Fundamental Differences Between Investing and Gambling

Comparison Item Investment-Style Trading Gambling-Like Trading
Judgment Criteria Based on statistics, analysis, and rules Dependence on intuition, emotion, and prediction
Handling of Losses Accepted as a planned part Something to be avoided or ignored
Reproducibility High (execution according to rules is possible) Low (wins and losses are dependent on luck)
Long-Term Results Possible to accumulate compounded returns Relies on short-term explosive power
How it's Evaluated Process-oriented (rule adherence, stability) Result-oriented (single profits)

From the perspective of handling prop firm capital, the ability to "handle capital like an investor" is considered most important.

In other words, what is being asked is whether you possess **calm management ability and professional consciousness**, without being swayed by emotions or desires.



5. Summary

Gambling in trading is a "lack of strategy and management," and it is one of the elements that prop firms dislike the most.

Conversely, it is also **evidence that a trader with planning, knowledge, and management in place is trading as an "investment," not "speculation."**

In exam-based prop firms, emphasis is placed on "whether you can continue to adhere to rules" and "whether you can systematically control losses" rather than "explosive profits in a short period."

**The awareness of eliminating gambling aspects can be said to be the first training to stand at the starting line as a professional trader.**

**Trading is a skill, not luck.**

From the moment you gain this awareness, your trading will surely begin to change.

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