Is Investing really Just Gambling?
By gambling you are taking a big chance that you might either win a lot of money, or you might lose a lot of money. You are playing a game and you don't know what's going to 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?
Investing is not the same as gambling. There are many different ways to invest your money, and some ways are not even close to gambling. When you invest in a government bond, you are guaranteed your principle and interest. It's not a gamble if you know for sure you're going to be paid back. There is a slight possibility that they government won't pay you back, but the government would have to be in a lot of trouble for that to happen and getting your money back would be the least of your worries.
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.
When you put money down on a football game or when you give your cash to a casino, you own nothing. Your earning power does not depend on the success of anything or anyone. It depends simply on chance.
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? - 23204
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?
Investing is not the same as gambling. There are many different ways to invest your money, and some ways are not even close to gambling. When you invest in a government bond, you are guaranteed your principle and interest. It's not a gamble if you know for sure you're going to be paid back. There is a slight possibility that they government won't pay you back, but the government would have to be in a lot of trouble for that to happen and getting your money back would be the least of your worries.
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.
When you put money down on a football game or when you give your cash to a casino, you own nothing. Your earning power does not depend on the success of anything or anyone. It depends simply on chance.
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? - 23204
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How does the stock market work to increase your wealth? Don't let the stock market keep you confused. Learn how to buy stocks safely to start safely investing your money today.
posted by X - Men @ 4:40 AM
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