Knowing reasons why people trade is essential for everybody

Betting on horse which should win the race is gambling, raising the pot during poker game is sport buying currency which should gain in value is business. Do you see any difference? But there is. It remains in human brain but still it is significant. It is the reason why people do what they do. Both gambler, player and trader do what they do from very different reasons. Understanding this difference is the key to understanding markets essence.

Why gamblers gamble?

Gamblers are gambling because they *need* to. It's not about money it is about adrenaline rush. Do you know that some of heavy addicted to gambling people are unhappy when they win? Loosing gives the reason to continue the game because they need to regain their losses, winning gives much weaker reason, just to win more which means much less adrenaline.

Why poker players play poker?

During poker match players are betting too but from different reason. They strife to outperform other players. To be better than them in managing emotions and/or probabilities. Money is a side effect here also - quite often it is a tool here to force other player to show signs what hand he has. Big pot when you bluffing makes you sweat, swallowing nervously etc. Reason why people play poker professionally is to become better than other players which fits in sport definition.

Why peole trade on markets?

Market trading is combining all that's above. Traders try to outperform other traders, they take risks often also bluffing. Sometimes good gambles make big money and above all trading usually means adrenaline rush.  Money is a side effect of trading. Most people think that this is the main reason why people trade and usually it is on very beginning but people who trade for money never make big profits. Best traders I had opportunity to meet and speak with are trading to outperform other traders. Their goals are to become best trader in their city or country not to make million dollars. Monetary goals puts unnecessary pressure on trader especially when he approaches the number. Just like in poker game - if you focus on money you will surely lose.

Sad but true

Gamblers never win in long term. Although spectacular trades happen and bring big money in, in long term gambler will be eradicated from market. Sometimes it takes longer time sometimes shorter but it happen always. Beginners are also on losing position especially if they don't have needed knowledge. But here is big difference as beginner trader have chances to become successful trader while gambler doesn't. Being a beginner is a stage that every trader had to be in at some point. In forex there is no other way than to jump to deep water - you will sit at the table with best traders around and you will lose to them from time to time. This is almost certain so trade small at the beginning.
Above all you need to learn why big players are doing what they do, why price is moving this or other way. Understanding the reasons is first step to achieve success here. To analyze price behavior you need certain amount of knowledge about market you want to trade and all its basics. So if you want to be a trader prepare yourself for years of learning, reading and practicing. This can be a great career but like in any other field to take something out you need to put something in first. W.D. Gann said in one of his publications: "There is nothing for free. For success you need pay with your money, time or energy"