Isn't speculating on stocks a better, less risky form of gambling?
Even if you bought stocks in one company, you would still have a chance of seeing large returns while being exposed to a lot less risk
- Anonymous4 weeks ago
You tend to have to spend more to get any stock. If you lose, you lose it all. Then there are brokerage costs...whether you are buying or selling.
Gambling I can spend $20. If I lose it I can walk away. No additional costs....to pay someone else.
- ProfGene.TogolotLv 71 month ago
It can be just as addictive and risky as any other form of gambling. Especially guys that get into day trading or the commodities market.
- kswck2Lv 71 month ago
Well gambling is a one shot deal, you win or lose. With investing, it can be days or even years before you win or lose.
- zman492Lv 71 month ago
Legally, there is a difference. Investing in stocks is taxed differently than gambling.
Morally many people consider there to be a difference. In some religions gambling is consider to be a mortal sin.
There is another important difference. If you gamble in a casino the odds of winning are always set so that in the long run you will lose money if you play enough. With stocks the price is set by an auction process among investors. The market is usually relatively efficient, which means the price is usually as fair as possible.
It is not clear what you mean by "speculating." If you mean any investment in the stock market, then you need to understand that most people who buy stocks and hold them for a long time period make money instead of losing money. People who buy stock and them sell them within a couple of days do not do as well, and often lose money. What short term traders do is much closer to gambling.
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- Divide By ZeroLv 71 month ago
Short-term speculating wouldn't be less risky than a low-edge casino game. Long-term buy/hold is better but still risky, still only something to be done with spare money. A lot of people think the market is guaranteed to go up in the span of a lifetime, but they're basing that on a sample of only a few lifetimes, and times are always changing.
The stuff you're asking about - hitting the lotto at blackjack, throwing darts at the market - I'm biased but why not just learn poker? Even today there's lots of easy money up for grabs for someone who takes it seriously. I don't know of a better source of gambling income. At least I'm pretty sure it's better than jumping through hoops for a 1% edge counting cards, or chasing a 3% edge betting sports, or a 10% return in 20 years in the market (which would be 0.48% per year). Only if you're already loaded (or if you can find loaded clients), and are having trouble scaling your poker up, might those start to be more attractive options.
- oil field trashLv 71 month ago
Speculating in anything is a bad idea. In the case of stocks it is best to invest in good stocks. Better yet buy mutual funds from a well know company like Vanguard, Fidelity or through your broker. Only a long period of time you can expect to get a return of up to 10 to 12 percent on your money.
It is true that you might not lose all of your money if you speculate in a given stock but any loss is not good.
- οικοςLv 71 month ago
You can lose your shirt in any form of gambling. Don't invest money that you can't afford to lose or trust a broker who gets paid for recommending a stock to you. Utilities are fairly safe, though.