Wannas Forum

Tsunade90 wrote: Wed Oct 04, 2023 11:45 pm All of you guys are right, just remember that careful consideration of one's financial objectives is essential when deciding which path to pursue.

You're absolutely right. It's essential to think carefully about your financial goals when deciding what to do with your money. Thank you for the reminder !

Investing is the act of allocating funds or committing capital to an asset, like stocks, with the expectation of generating an income or profit. The expectation of a return in the form of income or price appreciation is the core premise of investing. Risk and return go hand-in-hand in investing . Low risk generally means low expected returns, while higher returns are usually accompanied by higher risk.

Gambling is defined as staking something on a contingency. Also known as betting or wagering, it means risking money on an event that has an uncertain outcome and heavily involves chance. Like investors, gamblers must also carefully weigh the amount of capital they want to put "in play." In some card games, pot odds are a way of assessing your risk capital versus your risk-reward . The amount of money to call a bet compared to what is already in the pot. If the odds are favorable, the player is more likely to "call" the bet.

In short, When you invest, you will not see the results right away. But when you're gamble, every game has a result and that is the difference.

Investors must always decide how much money they want to risk. Some traders typically risk 2-5% of their capital base on any particular trade. Longer-term investors constantly hear the virtues of diversification across different asset classes. However, risk and return expectations can vary widely within the same asset class, especially if it's a large one, as the equities class is. For example, a blue-chip stock that trades on the New York Stock Exchange will have a very different risk-return profile from a micro-cap stock that trades on a small exchange.

Most professional gamblers are quite proficient at risk management. They research player or team history, or a horse's bloodlines and track record. Seeking an edge, card players typically look for cues from the other players at the table. Great poker players can remember what their opponents wagered 20 hands back. They also study the mannerisms and betting patterns of their opponents with the hope of gaining useful information.

Investing is a long-term Investments . while gambling is often for entertainment and immediate gratification.

Nala262 wrote: Wed Oct 04, 2023 11:26 pm How many times during a discussion about finances have you heard someone say, "Investing in the stock market is just like gambling at a casino"?
True, investing and gambling both involve risk and choice—specifically, the risk of capital with hopes of future profit. But gambling is typically a short-lived activity, while equities investing can last a lifetime. Also, there is a negative expected return to gamblers, on average and over the long run. On the other hand, investing in the stock market typically carries with it a positive expected return on average over the long run.
Everyone could share your thoughts and insights about this . What do you think ?

Investing in the stock market and gambling in a casino are distinct activities with significant differences.
Unlike gambling that usually has short term and anticipated negates returns, investment is normally a sustained activity involving positive expected returns.
To invest one needs to have some knowledge, do some research and diversify in order to minimize risks. Gambling is based primarily on chances.
Investing is built upon wealth generation, while gambling focuses more on instant entertainment/excitement.

For my self Investing and gambling both involve risking capital in the hopes of making a profit. In both gambling and investing, a key principle is to minimize risk while maximizing reward. Gamblers have fewer ways to mitigate losses than investors do. Investors have more sources of relevant information than gamblers do.

Dude, if you wanna invest in the stock market, you gotta know your stuff. You gotta do your research, keep up with the financial markets, and always be learning. It's not easy, but it's worth it. Investors spend a lot of time analyzing economic trends, checking out financial statements, and staying on top of the news that could affect their investments. But if you're just gambling at a casino, you don't need to know much more than the basic rules of the game. The only thing these two have in common is that you gotta spend some cash.

Investing in the stock market is a long-term wealth-building strategy, with the potential for compound returns and positive expected returns over time. It's driven by research, analysis, and informed decisions.
In contrast, gambling typically offers a negative expected return, meaning that, on average, players lose money over time. It's often based on chance and luck rather than research or strategy.
So, while there are risks in both, the approach, objectives, and outcomes of investing and gambling distinguish them as distinct financial activities.

Investing and gambling are two distinct activities that involve financial risk, but differ greatly in objectives, strategy and risk management The main objective of investing is to build your wealth increasing long-term appreciation by investing your money in assets that can provide long-term. Investors seek to generate returns by owning assets such as stocks, bonds, real estate, and businesses.