Is it a lucky dip to invest in stock market apart from ones piece of land or commercial building? is a question that triggers frequent conversation among the investors and stock analysts. This is because, although both activities entail the possibility of earning a profit or incurring a loss and may therefore been seen as being related, the difference between them lies in the principles and purpose.
To summarize, gambling’s main concept is that the outcome of any activity depends mainly on chance. Searching for the current position in the forward, including betting money for sports results, playing cards or spinning the roulette wheel the outcome is fully unpredictable and based on the chance. On the other hand, stock market investment is more of evaluating and reaching a decision the politics of the share rather based on probability or Using fundamental and or technical analysis, trends and performance results of the specific company you are so investing in.
In addition, most forms of gambling happen instantly, and the goal of the activity is immediate reward, often stemmed from the excitement of risk-taking. Trading on the other hand is a short term plan with the view on achieving profits within a short space of time while investment is a gradual process that is done with the intention of accumulating wealth within the longest period of time.
Furthermore, investing is financially productive for funding new capital and a productive stock of capital to undertaking projects in the economy. While, on the other hand, gambling especially when one gets addicted to it or gambles beyond his/her capabilities results in financial losses and gambling becoming a sickness both for the people and the society.
It is imperative to understand that the stock market investing is not gambling though there are specific risks involved in this trade. If investors conduct thorough investigations, proper diversification, and focus on the long-term interests, then minimization of risks and possibilities to achieve the intended objectives are possible. Investing is closely associated with education, rational choice, and reasonable risks contrasted to gambling’s vaguer and more impulsive nature.
