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

Investing and gambling at times can overlap and many people think of stock trading has gambling however this is a fallacy.

In this video were going to cover some of the differences between investing versus gambling in the deeper meaning behind the two.

You will learn which items overlap and how they are different from one another. I’ll also share with you some insight on why many people believe that investing or stock trading is like gambling.

Often times this is usually because they are unaware or do not understand investing. When someone does not have the knowledge or expertise that of course it’s going to have higher risks involved and therefore they classify it more like gambling rather than investing.

Posted at: http://tradersfly.com/2017/04/ep-131-gambling-vs-trading/



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  1. 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?

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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

  8. 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.

  9. 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

  10. 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. ???


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