Investing in stock market and gambling

[Frankjenny]

What is the difference between investing in stock market and gambling? In my opinion both are same what’s your opinion?

[Lottery]

From my experience the stock market is a gamble, but if you have some knowledge of the 'subject' then it does not feel like you are going into something blind.

[KasinoKing]

What is the difference between investing in stock market and gambling? In my opinion both are same what’s your opinion?

It depends on what sort of Gambling you are talking about.
Generally I would say with the Stock Market people invest a LARGE sum of money and may gain or lose a small percentage of that (maybe 10 - 20%?) over a LONG period of time.
But with my Casino Gambling, for example, I "invest" a relatively SMALL amount of money and may gain a HUGE percentage (200% to 2000%, or even more) or lose 100% over a very SHORT period of time.

Personally I don't have the patience for gambling even on things like Football Matches or Horse Racing, let alone long-term gambling on stocks & shares!
The other thing of course, is that some casinos give out big bonuses which greatly improve your chances of winning!

KK

[wunderlich]

Stock market indeed is a gambling if you know nothing about it and just starting out. But when you are becoming an expert it is not already a gambling it is a serious business.

[rentap]

If you are trader or speculator then they are similar, because when you have a good strategy, (which includes method, technique, and iron discipline) you win in both.
If you are an investor, in that case it is more easy to win in financial markets because time is your friend. In this case, you trade the assets theirselves, not futures or options (derivatives), and in time (sometimes it takes too much time) all assets go up.

[scepticus]

If you are trader or speculator then they are similar, because when you have a good strategy, (which includes method, technique, and iron discipline) you win in both.
If you are an investor, in that case it is more easy to win in financial markets because time is your friend. In this case, you trade the assets theirselves, not futures or options (derivatives), and in time (sometimes it takes too much time) all assets go up.
???
Not necessarily Rentap
"Markets " go up and down but individual stocks and shares sometimes go belly - up.
Investing in The Stock Market is most certainly a form of gambling, sophisticated perhaps, but gambling nevertheless. Even the dull side side of banking is gambling because a bank manager uses his skill in deciding which small businesses to lend money to.And he may get it wrong- and sometimes does get it wrong
All situations where money is put at risk is a form of gambling, and there is no such thing as " a sure thing" in any form of gambling !

[rentap]

If you are trader or speculator then they are similar, because when you have a good strategy, (which includes method, technique, and iron discipline) you win in both.
If you are an investor, in that case it is more easy to win in financial markets because time is your friend. In this case, you trade the assets theirselves, not futures or options (derivatives), and in time (sometimes it takes too much time) all assets go up.
???
Not necessarily Rentap
"Markets " go up and down but individual stocks and shares sometimes go belly - up.
Investing in The Stock Market is most certainly a form of gambling, sophisticated perhaps, but gambling nevertheless. Even the dull side side of banking is gambling because a bank manager uses his skill in deciding which small businesses to lend money to.And he may get it wrong- and sometimes does get it wrong
All situations where money is put at risk is a form of gambling, and there is no such thing as " a sure thing" in any form of gambling !

As I said It depends on your time horizon. If you expect returns in a period less than 1 year, which is considered speculation, that is gambling. If you expect returns beyond 1 year, which is Investment, that is not exactly gambling. It is more easier than gambling but not guaranteed.

[scepticus]

Where we agree is that getting rich quick is a bad strategy.
We also agree that profiting is not guaranteed.
Where I don't agree with you is that the timeline is crucial.I once took out an investment over a six year period .It rocketed up 33% in the first year then fell back and ended up 13% in total over the six years.I could have got a better return from a normal savings account at that time. It was a gamble that didn't come off.No tears.That is what gambling is about - taking a chance .
I simply do not understand why people don't realise that .You puts down your money and take a chance.
" Investments" - " Banking " " Betting " are all forms of gambling where you can make a profit or loss where neither is " guaranteed ".Most Investment Adverts carry the warning that " you may not get back your original investment. "
I wonder why ?

[rentap]

Where we agree is that getting rich quick is a bad strategy.
We also agree that profiting is not guaranteed.
Where I don't agree with you is that the timeline is crucial.I once took out an investment over a six year period .It rocketed up 33% in the first year then fell back and ended up 13% in total over the six years.I could have got a better return from a normal savings account at that time. It was a gamble that didn't come off.No tears.That is what gambling is about - taking a chance .
I simply do not understand why people don't realise that .You puts down your money and take a chance.
" Investments" - " Banking " " Betting " are all forms of gambling where you can make a profit or loss where neither is " guaranteed ".Most Investment Adverts carry the warning that " you may not get back your original investment. "
I wonder why ?

Hi
In general I also agree with you in terms that the financial markets try to give an idea of an ultra-sophisticated industry but really that is a fake. There are many incompetent people working there.
Probably your bad experience resulted of a bad product design, bad management or just because 6 years is not too much time. People want to became rich in 2 days but that is not possible in Investement. Look at Warren Buffet: when asked about the timeline he prefers he said: -forever-. This is not gambling, he is not a gambler. This is patience, common sense, discipline, rigour...

[scepticus]

Hi Rentap
I’m not quite clear as to how you distinguish between “investor “ and “gambler “.
You label some in the investment business as being incompetent .Do you mean they are bad at “investing” and Warren Buffet is good at it or they are nothing but gamblers who don’t understand what good investing is about ?It might be that Warren Buffet is a good gambler inasmuch as he prefers the small profits reinvested approach rather than the Gung Ho “ Bet the Ranch “ approach.
Savvy gamblers in all spheres use the same approach as you claim for Buffet- patience, common sense, discipline and rigour so Buffet is not unique in that regard. His preferred timeline is understandable given that he has continually reinvested his profits over 50 years or more and has spent little -if any - of them during that time so even another 50 years of accumulation is obviously acceptable to him. So ,is he a cautious “ investor” or a cautious “ gambler “ ? It depends , as ever , on what you mean by those terms but they both mean “speculate to accumulate “.

Incidentally , my 6 year investment was based on four Indexes. The Footsie, The Dax, S & P and the Hang Sen so the managers’ returns were not the result of “ bad “ management but they got the timing wrong. Timing can be crucial in the Stock Market.
In casino gambling I prefer the Buffet approach .Small profits accumulate. If you want life-changing megabucks wins , stick to the National Lottery !