The answer is both!
It actually depends on the trader’s approach to trading the financial markets.
First of all i would like you to understand a fact that all financial market is dynamic, random, volatile and unstable by nature! Hence we are dealing with a speculative market and by definition Speculation is the act of trading in an asset or conducting a financial transaction that has a significant risk of losing most or all of the initial outlay with the expectation of a substantial gain.
With this said, the speculative nature of financial markets makes all traders more of like a gambler!
However we can incorporate the habit, mindset and ways of an investor to tweak this speculative nature of the market into our favor and increase our odds of winning more than loosing.
To determine if you are a gambler or an investor in your approach to trading, answer this questions below with honesty to yourself.
What will you call a trader who doesn’t have a fool proof strategy that has been back tested for a year and also forward tested for 3-6 months before investing huge capital?
What will you call a trader who risks more than two percent of his trading capital in just one single trade and fails to adopt a proper money management scheme?
What will you call a trader who’s mission is to quickly amass wealth within a very short time period, like a get rich quick scheme?
If you fall into any of the category in this questions, then obviously you are a GAMBLER!
An investor’s approach to trading is completely opposite of all the aforementioned questions above. A lot of people still wonder if its possible to make a living from trading. Yes you can, however you have to completely adjust your mindset to trading. Stop looking for a way to get rich quick, rather focus on mastering the art.
If you master the art, the profits will flow in naturally!