Investing Is Gambling?
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Hi,
do you believe investing is gambling?
Since no investment decision can be ascertained 100% to make money. It's all probabilities. And making calls on those probabilities. Much like gambling. -
Yes
Actually, you should ask "Is it good or bad?" -
Anything to do with the dealing of money carries some form of risk.
Investing is not gambling, it is an attempt to use some form of science by poring over the books, the accounts, the charts etc ... in the hope to realise a gain from that endeavour that hope is basically the calculated risk. Generally before investing there is some study involved and expense of the time factor.
Time? What time? When you plant a durian seed, the tree doesn't grow overnight, that seed needs to weather the heat of the days and cold nights it also needs to be nutured and fed just like any business or investment you need to expend attention and time in the hopes it will grow and you get a return.
gambling is all luck, you based your decision on the moment, on your mood, mebbe you feeling rich or the ger in red smiling at you so you bet on the queen of hearts. There is no science in gambling. there is no study involved and not much expense of time factor.
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In the case of gambling, the probability of winning WILL NEVER EXCEED 50%.Originally posted by Li Ka Shing:Hi,
do you believe investing is gambling?
Since no investment decision can be ascertained 100% to make money. It's all probabilities. And making calls on those probabilities. Much like gambling.
The Casino, and no one else ,controls the odds and probabilities.
Investing is a different thing. Investing must not be confused with speculating.
To Invest is to make a business decision based on a factual fundamental. For example--I buy SPH shares because SPH is in the media industry and I believe that the media industry will boom in future. Based on this thinking, I expect a 50% profit from the dividends and capital appreciation.
You will make a profit if your forecasting was correct and the assumption that no events beyond your control happens. In this manner, you have created a better possibility of winning because of research, analysis and forecast.
To Speculate is to make a decision based on nothing but the feeling that "the share price will go up". This is the same as gambling. When you gamble for profit, your thinking will be something like "Im going to bet $50 because I think I will win". What is the factual basis for such thinking? Nothing.
Therfore, Investing is NOT GAMBLING. Investing is about creating the best possible chance for you to win. Gambling isnt. There is no way you can make money from casinos....unless you take advantage of their free food. -
What about horse racing? I mean some freak might just go the extra effort to study the racing horses for months. Monitor their diet, health or whatever thing. There wil come a time when he feels that this particular horse is the fittest and probably going to be the fastest so he betted on the horse. Now is this gambling? Same goes to betting on soccer matches. Gambling as what you guys are discussing about are not all about casinos stuff you know...
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The definition of gambling is clear. That is to bet on an outcome which you are uncertain of. To bet on an outcome with no basis of forcasting the results.Originally posted by dinky1409:What about horse racing? I mean some freak might just go the extra effort to study the racing horses for months. Monitor their diet, health or whatever thing. There wil come a time when he feels that this particular horse is the fittest and probably going to be the fastest so he betted on the horse. Now is this gambling? Same goes to betting on soccer matches. Gambling as what you guys are discussing about are not all about casinos stuff you know...
In the scenario you have just described, it could be considered maybe 20% investing and 80% gambling. Let me explain.
If you commit time to find out about the diet which the horse consumes, the number of muscles in the horse, the psychology of the horse and the bond betwen the rider of the horse, etc etc you are actually creating a good chance for yourself in the sense that you have a reasonable basis to predict the outcomes.
But one must not forget that when you make a bet on the horse, what do you get? You get only a chance to win money. If another horse were to win, you lose 100%. That is to say, when you commit money to bet on horses, you do not get anything physical in return
In the case of buying shares or financial products, you get something physical in return for the money which you commit. When you buy shares, you are buying part of a company. You become an investor. The shares you bought carry voting rights which you may use to influence decisions made in the company.
So in investing, you get something for something. In gambling, you get nothing for something. -
thats why the stock market is the biggest legalised casino.
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It is a form of gamblingOriginally posted by Li Ka Shing:Hi,
do you believe investing is gambling?
Since no investment decision can be ascertained 100% to make money. It's all probabilities. And making calls on those probabilities. Much like gambling.
The last one to pull out after the stocks' price falls will be the loser
Anyway "cashing in" before CNY is common so beware of investors which are out to make a quick $ -
Nicely put.. Got me cleared there thanks..Originally posted by shade343:So in investing, you get something for something. In gambling, you get nothing for something.
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Only speculators think that way.Originally posted by dragg:thats why the stock market is the biggest legalised casino.