Is Investing really Just Gambling?
Gambling is a game, a contest. When you gamble, you take a chance that you will increase your money or lose your money. There's no way of knowing what will happen.
For some, investing is also a game. By investing, you are putting your money into something that you really believe will increase in value and be successful. If the investment is successful, you make money. Some people play with the market as a game and have fun with it. Others do it solely to make money and have no desire for enjoyment. Why don't they look at it as a game?
When you invest your money, you aren't gambling. Some investments are very far from gambling, they're not even close. Take government bonds for example. You might even say they are more likely to pay you back with interest than your employer is, assuming it's not a government employer. There is a tiny chance they won't pay you back, but only in the severest of cases.
What about stocks? How does the stock market work in a way that's not gambling? Buying stock means buying part ownership in a company. You invest in that company with expectations that they will make a profit and you'll get paid dividends and/or the value of the stock will increase and you could sell for capital gains.
If you bet money at a horse race or put money down at a poker game, you own absolutely nothing. Whether or not you make money doesn't depend on the success of a business. It is completely by chance if yo make money.
Investing is another way to earn an income. When you invest, your money is earning money, not simply taking a chance on itself. If you ever fall into a large sum of money and you aren't sure which way to go, remember that investing is much less risky and could earn you a lot more money over the long run.
Let's say you inherit $10,000 from a long lost Uncle. If you have a chance to gamble your money and double it, you could have $20,000. You could double it again and have $40,000 and so on and so forth. The problem is that the possibility that you'll even double it the first time is slim to none. If instead you invested it into the stock market and got an average 8 percent return and didn't touch it for 30 years, you would have about $100,000. Which would you choose? - 23200
For some, investing is also a game. By investing, you are putting your money into something that you really believe will increase in value and be successful. If the investment is successful, you make money. Some people play with the market as a game and have fun with it. Others do it solely to make money and have no desire for enjoyment. Why don't they look at it as a game?
When you invest your money, you aren't gambling. Some investments are very far from gambling, they're not even close. Take government bonds for example. You might even say they are more likely to pay you back with interest than your employer is, assuming it's not a government employer. There is a tiny chance they won't pay you back, but only in the severest of cases.
What about stocks? How does the stock market work in a way that's not gambling? Buying stock means buying part ownership in a company. You invest in that company with expectations that they will make a profit and you'll get paid dividends and/or the value of the stock will increase and you could sell for capital gains.
If you bet money at a horse race or put money down at a poker game, you own absolutely nothing. Whether or not you make money doesn't depend on the success of a business. It is completely by chance if yo make money.
Investing is another way to earn an income. When you invest, your money is earning money, not simply taking a chance on itself. If you ever fall into a large sum of money and you aren't sure which way to go, remember that investing is much less risky and could earn you a lot more money over the long run.
Let's say you inherit $10,000 from a long lost Uncle. If you have a chance to gamble your money and double it, you could have $20,000. You could double it again and have $40,000 and so on and so forth. The problem is that the possibility that you'll even double it the first time is slim to none. If instead you invested it into the stock market and got an average 8 percent return and didn't touch it for 30 years, you would have about $100,000. Which would you choose? - 23200
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Want to know know how the stock market works? Don't let the stock market keep you perplexed. Learn how to buy stocks quickly and easily to start safely investing your money today.
posted by X - Men @ 9:22 AM
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