A good trader doesn’t gamble.

Most people think trading is like gambling. Why? Maybe because both seem like very risky ways of making money. But that’s not quite the reality. Though poor trading may resemble gambling, good trading is nothing like it.

If you trade like you gamble, chances are your capital will disappear rather quickly, as gamblers don’t carefully control how much money they put down. But how do you know when you’re trading like a gambler?

The inability to resist the urge to bet is a sure sign that you’re an inveterate gambler. If you ever have the feeling that you need to trade or that you just can’t stop, you are gambling. Try taking a one-month break to get those risk-taking urges under control.

Another sign is when single trades begin affecting you emotionally. If the stocks move in your favor, you feel happy and powerful, but if the trade moves against you, you feel crappy. Emotional trading causes you to gamble away your money in search of positive feelings.

A professional trader doesn’t get emotional, because she knows that trading is merely a way to make money. She doesn’t feel a personal connection to any given stock.

Self-sabotage is also a common pitfall for traders, be they a beginner or a professional. In fact, one of the author’s friends did just this. As a pharmacist, broker and trader, he was unsuccessful, but prone to careless decisions.

At the height of his trading career, he went on a trip to Asia, leaving open a vast position with no security at all. Naturally, when he returned, that position had decreased and all his capital was wiped out.

How can you prevent a devastating mistake like this? It’s simple: Take responsibility for your actions and their consequences. Good trading also means taking responsibility for your own decision-making.