Are Gambling And Stock Investing The Same

Are Gambling And Stock Investing The Same


The question you may ask yourself, is the stock market considered gambling? You will usually hear this question asked from time to time, and by chance you buy a stock, and the stock price suddenly goes down, it may feel like gambling. If you were to invest in stocks, you may lose all of your money. So, what is it then, is there a difference between the two? Gambling and the stock market, are the two really that much different?

In some cases it would seem that you may lose that easily within the stock market just as the same if you can at the blackjack table. You can try and ask anyone that has lost their money in a casino, and ask them how they felt after their stock went from 10 dollars per share to zero. In this industry you have the potential to lose a large amount of money from your investment in stock.   However, it is rarely that companies would go bankrupt and the value of the stock go down to zero. In the blackjack table or craps, however, losing all that you have is really common.

The only difference between pure gambling and buying stocks of a company is that you are actually banking on the future of the company that you have invested in.  You can use track records that you can do research on.  And if you have invested in many stocks, you may want to say that you have already invested in the future of the country. The buying of stock gamble is more reasonable if you compare that to pure gambling in the casino.

If you are wise with your investment strategy, and diversify your investments, then you are able to reduce the risk of losing your money with your stock picks.