How is investing gambling and vice versa?

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  • 1 decade ago
    Favorite Answer

    The odds are different,in gambling you have to sit with a bad card,but in Investing you can pull out or you can ride out the low and wait for the bull,in gambling if you lose you lose, you can't ride it out,not only that the odds of winning are so much higher in investment if you are an expert,in gambling even the expert can be beaten by a novice if he has a bad card,especially in Mutual fund it is almost impossible to lose all your money except due to the outbreak of war.

  • 1 decade ago

    Gambling deals with MONEY. Investing has to due a little more research. The bottom line is that everyone wants the greatest possible return on there money. Gambling is alot more active,you CAN NOT let the money sit on the table and ride out your lost. Where as in Investing one can dollar cost average it out and buy more shares when the market is down.

    Both are great investment VEHICLES.

    Trust me, I have been in the field of Investment for over 17 years. I have had first hand experiences in depositing millions in cash for Bay area casino & I also holds an active lic in the security investment industry.

  • pgreen
    Lv 6
    1 decade ago

    Gambling is boring, as the odds are known in advance.

    This is purely mechanical stuff, and you have only one

    certainty: you will lose in the end.

    Investing is fun, as you have uncertainty.

    Not only measurable risk (professionals call it "volatility").

    But real uncertainty, as past statistical probabilities

    will never reflect future events perfectly.

    Also in investing, you are betting on the future, as you

    anticipate it, not against a casino. This is more positive.

    You can even end up with more money than you had

    at the start.

    Well, you can lose also, never play with the money you

    need to feed your kids

    And you learn a lot of things about economics, finance,

    social psychology.

    Well, you better start to learn before starting to invest.;-)

    Score: Investing 1, Gambling 0

    .

  • Anonymous
    1 decade ago

    It's gambling if you don't do your homework and just pick stocks for no reason. When I invest I check out a company and their history and look at reasons why I should and should not invest in them. That takes the gamble out of it.

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  • Anonymous
    1 decade ago

    investing and gambling are alike, in the sense that they both have risk. However you wouldn't call playing cards at a casino an investment ...right ? Of course not.... An investment is an informed financial decision. Gambling is simply chance.

    If I invest in the stocks, I can compile statistics for the company i'm investing in, gather information about it, I can look for patterns in the stocks history, I can look for stock splits....and most importantly, I can pull out my money anytime. If your at a texas hold'em game, once your money is in the pot...your in to win, or you lose.

    Gambling = guessing

    Investing = educated guessing

  • Tom H
    Lv 4
    1 decade ago

    I agree with the general notion that a smart investor is not just gambling with his/her money. But, ...

    Investing always has an element of risk. If you are careful and do your homework, part of the risk is knowable, and part is not. How do you mitigate the downside of the unknowable part? The same way a great gambler does.

    The average gambler is a dummy, but a great gambler (one that wins a lot) is always trying to understand the risks. He/she calculates the odds, and the magnitudes of the upside and downside. A good investor tries to do the same.

    A great gambler doesn't play the slots or roulette, since he can't win on average.

  • 1 decade ago

    In gambling result is non-reversible. Investment fully or partly can be withdrawn at any time.

  • Anonymous
    5 years ago

    Change in income leads to a change in investment due to increased confidence by investors that their investment will pay off i.e. national income is expanding, economy is expanding, people have more money to spend, govt is investing more, more money is in the economy as outflows decrease. Change in investment leads to a change in income as Y = C + I + G + (X-M). Thus an increase in I, ceteris paribus, will increase Y also.

  • 1 decade ago

    Look at the stock market this week . It's up , down and no one knows where it will go. All those stock holders are gambling their stock will go up and suddenly the DOW is down 400 points. Thats gambling!!

  • Anonymous
    1 decade ago

    Investing IS NOT GAMBLING.

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