Why Stock Market Investing Isn’t Gambling?

If you are looking to be entertained, gambling online will probably be better than stock investing. You can click here to experience an online casino site, and get the chance to win, or lose, big money.

Investing however is aimed for the pure gain of money; therefore it is much different than gambling.

On the one hand, there is a lot of similarity in terms of investment in the stock market and gambling as you can both acquire a lot of money and also lose a lot as well, in a very short time period. This is a general outlook of these two.  On the other side, there are many differences that make investments in stock markets different from gambling.

As per definitions, both investing and gambling differ too. While gambling is betting, an amount at a risk of whether you would profit out of it or not, investment on the other hand is committing an amount of money for financial gain only. Investing in stock market would be a process where you would have to be on a look out for the rising and falling market trends that would help you gain money or lose it. While in gambling, it is going to be pure luck when the odds will work in your favour making it easy for you to win, but you would also have to face losses just the same.

Investing in stock market would not give you results that are not random but work with the rise and fall in the market trends, while gambling is again by chance that you would win or lose. Investing in stock market and choosing a right company can guarantee you a good business that you would mint money from. Of course, there will be downfalls, where your investment can bring you some loss, but that is a part of investing in stock market. Investing in a stock market is a continuous process where you would be making investments for a long period of time, and gambling you would limit yourself to the cash in hand that you would have.

When you lose money in gambling, you lose further, as you would again bet a lot of money in order to gain back the money you have lost. But investing in stocks would mean that you own the stock, and as the price rises and falls in the market, you would still benefit with your investment.

Investment in stock marketing would become equal to gambling only if you randomly select one stock or the other making it a very risky business. The uncertainty rises with multiple jumps of stock market, making it equal to gambling. So make sure that you invest wisely, now that you know that stock market investing is not equal to gambling.

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One Response to Why Stock Market Investing Isn’t Gambling?

  1. Chad says:

    Taking this a step further. I would recommend anyone who is looking to better understand the movement of the markets do some research into technical analysis. This is topic that I cover on my website as an individual investor. It provides a clear but sometimes chaotic point of reference for the price movements of stocks and the overall market in general.

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