Is Investing the Same as 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.
When it comes to stocks, investing is still very different from gambling. When you buy a stock, you buy a piece of the company. You own part owner of that company. You are invested in that company which means when they make money, you could get dividends, or when they are doing well, the price of the stock will go up.
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.
For example, we'll say you inherit $10,000 for an Aunt. You could either choose to gamble it for double or nothing to $20,000 and then double it again for $40,000, etc. Sure, you could double it 10 times over, but the chances of you even doubling it the first time are very slim. You can pretty much assume you will not be able to double it ten times over. In you invested invested it into stocks and earned an average of 8% a year for 30 years, you would have over $100,000. Lose it all or multiply it by ten? - 23226
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.
When it comes to stocks, investing is still very different from gambling. When you buy a stock, you buy a piece of the company. You own part owner of that company. You are invested in that company which means when they make money, you could get dividends, or when they are doing well, the price of the stock will go up.
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.
For example, we'll say you inherit $10,000 for an Aunt. You could either choose to gamble it for double or nothing to $20,000 and then double it again for $40,000, etc. Sure, you could double it 10 times over, but the chances of you even doubling it the first time are very slim. You can pretty much assume you will not be able to double it ten times over. In you invested invested it into stocks and earned an average of 8% a year for 30 years, you would have over $100,000. Lose it all or multiply it by ten? - 23226
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How does the stock market work to make money? Don't let the stock market keep you confused. Learn how to quickly buy stocks to start safely investing your money right away.
posted by X - Men @ 9:26 AM
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