Ep 131: Gambling vs Stock Trading / Investing (Similarities / Differences)

Stocks look much more like Multi Level Marketing

where the new people in, finance the people already in rather than the success of the company having anything at all to do with the value of the stock

if the company value does have anything to do with the stock, this is cosmetic.

owning stocks is like owning a company's tshirt as a token ownership. you have no voting rights, no real ownership. and the only time you feel the ownership is when the company goes bankrupt and you lose everything because your stock is so worthless, nobody will buy it on the way down. just like owning a company

but the reverse is not true. as the company starts making a lot of money, you have no rights to the ownership dividend unless they are gracious to share it.

also consider the insider trading which often happens as the founders bail out of a sinking company. how much ownership do you really feel then?

You are the master of writing backwards

Since when is trading stocks/options not considered gambling? Charlie Munger compares traders to heroin addict for a reason…

Feels like VERY knowledge person, but boring as f…

did anyone notice he is writing reverse? fking davinci is alive

First of all you have to get your definitions right "INVEST" & "TRADING " is totally not the same thing. If you hold on to stocks longer than a year its considered an investment. If you buy a stock and sell it at a higher price as quick as u can thats called "TRADING" in my opinion trading and sports betting is the same thing.

They are very different actually. In gambling you will have equal chance with other players almost of the time but you can never have the same chance with big traders in trading (insiders and big fishes). That's why you should invest in stock market and buy some worthless shares with hope of getting rich. If you are computer scientist and you buy a computer for developing some kind of tech software it is investment but if you don't have any knowledge of computer and hiring someone to develop something I can surely say that it is gambling or capitalism. Typical stock market investor behaviour.

Broker is technically a Casino in the Financial world.

This taught me a lot! I can explain to my friends the difference now!

Nice topic, thanks

Sasha . These days they have LIVE sports wagering / investing , including LIVE and in progress Cash outs. …. So where you use the comparison in regards to WIN OR LOSE in sports wagering that is not fully correct now.
For instance . If I take the Yankees (1.80) or 1.8 to 1 , .80 cents in the dollar risked for today's game over the Jays and we wager 100 risk to profit 80 , and after say 5 innings the score is 5 to 0 Yanks I am offered a Cash out of say 160 or 60 profit even prior to game ending. OR if I was losing 4 to 0 after the 5th inning I am offered a Cash out of say 35.00 , meaning a loss of 65 as allowed to entire 100.
They have made sports wagering a whole lot more like Stock investing or mainly Day trading today more then ever.
After you cash out and take your payout it matters NOT if the opposition , in the above example , the Jays come back and win 6 to 5 by games end. Where the old style waging has you losing 100 , today since you cashed out when UP 5 to 0 in the 5th inning so your 60 profit was taken and shown as gain that would have been a 100 loss by old standards. That being a swing of 160.00.
Ownership can be a positive or a negative. If you own and purchase a home for 100,000 and mortgage say 80,000 , and the market tanks to 50,000 , now you are actually Negative 30,000 in worth.
Granted historically this doesn't occur often especially in a real estate friendly Country like Canada but it can happen none the less.
In any case great video I just wanted to add another perspective .
Have a super week sir.

What do you draw on, is that a kind of piece of glass you use a marker on with the camerae positionied behidn it? or some kind of other technology

I find that there's just gambling and card-counting in ALL BUSINESS. I'm a glorified card-counter, but it sounds 'cooler' if I say "I run a private stock trading company".
The way I know I'm not a gambler, is that every year, I see a positive ROI and it's usually a significant amount, such as 150% a year, 300% a year, etc. That to me is a successful 'card counting' strategy. Gambling is when you are either breaking even or losing, year after year after year.

The only difference between an entrepreneur and a gambler, is that the entrepreneur eventually starts seeing positive returns. Neither knows how to quit. It's actually quite hard to tell the difference, but consistent positive ROIs are a good indicator, because it's objective. Cherry-picking a time-frame can show you what you're capable of, but it should never be used to lie to yourself. In the end, only you know what you are.

Investment in real estate if you’re borrowing from the bank means you’re basically Renting from the bank unless you paid the house in full. And if you borrow 5 million from a bank and your house sell for 50,000. Guess what? You lost money and you still owe over 4.5 million plus interest to mortgage you sign for. The bank always win. Just like the house always win.

Oh yeah… I'm sort of… reading studying Wyckoff-ian style of trading since I'm a big fan of Wyckoff.

Keep up the good work! ?

You know what… you made me realized something! Gamblers are addicted to the emotional "rewards mechanism" ? of the game. In other words… they're #EndorphinJunkieFiends! ?

how can you type like that wow really smart person

thank you very much for this video because is very hard explain to other people stok market is not gambling is so hard for me listen from people with out knowledge tell me stok market is casino

this is a nice topic… many people have strong thinking that stock is gambling because they are a bunch of FOMO who lost money in their past.

great info !

A good video! I currently use Robinhood, which offers $0 commissions. I think I'll build my balance up then transfer to a bigger broker…

Agreed. Blue Chip Stocks > High stakes poker…

Nice video Sasha! Was wondering if you plan to make a video on 3x ETFs, seems they are getting popular due to volatility.

Sasha you have recommended to invest in boosting your knowledge if you have a small trading account not to get involved until you do. The alternative gives you a percentage game right from the start.

Sasha you forgot to mention that with trading there are costs. Costs of the trade with broker and then the tax on any gain. None of these costs with a well thought out alternative. As you mentioned if you have the knowledge then there is no real difference. In fact I would say trading is at a disadvantage as there are many people trying to win whereas in sports there are less people who have explored the benefits.

Another Very good Video

Very good video.thanks

stocks are a method of payment from one entity to another. mostly involves work. which means it has to have a routine in the way it fluctuates. a gambler can argue this statement tho lol

Thank you so much Sasha. made perfect sense. needed to hear this 🙂

I see that you have made many useful videos. Can you suggest me some basis information for beginner to learn about stock because I have nothing in my mind now!!

It was very insightful topic that you presented in this video, Sasha. Now, I can explain my people the differences between "Gambling" and "Investing" in stocks, clearly. ???