The Difference Between Investing and Gambling
Whether investment is the same as gambling depends on one’s attitude. Unless one is a mathematics prodigy with a photographic memory or blessed with incredible luck, gambling is more of a game of chance with the odds in the banker’s favour.
With investing, there is a wide spectrum of assets to choose from, with low-risk T-bills and AAA/AA-grade government bonds at one end and high-risk complex derivative products at the other. It is possible to mitigate some of the risks in investment by selecting lower-risk or capital-guaranteed products or high quality companies that offer great value, doing thorough research beforehand, diversifying and practising dollar cost averaging.
With investing, there is a wide spectrum of assets to choose from, with low-risk T-bills and AAA/AA-grade government bonds at one end and high-risk complex derivative products at the other. It is possible to mitigate some of the risks in investment by selecting lower-risk or capital-guaranteed products or high quality companies that offer great value, doing thorough research beforehand, diversifying and practising dollar cost averaging.
If one treats investment like gambling, it can all come falling down like a house of cards. I had an acquaintance who was a routine patron of casinos. During the pandemic, there was a period when he couldn’t visit the casinos so he treated the stock market like a casino and kept losing money. There was no thought given to stop loss and risk management. He lost more money in the stock market during that period than he ever did at the casinos. That is not called investing; that is throwing a fortune away.
Investing requires effort but the rewards are well worth it. Start reading, learning and practising with the excellent courses and paper trading account available in moomoo today.
$Apple (AAPL.US)$ $S&P 500 Index (.SPX.US)$ $Amazon (AMZN.US)$ $Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ $Microsoft (MSFT.US)$ $Netflix (NFLX.US)$ $Meta Platforms (FB.US)$ $Tesla (TSLA.US)$ $Taiwan Semiconductor (TSM.US)$ $Bank of America (BAC.US)$ $JPMorgan (JPM.US)$ $Citigroup (C.US)$ $Visa (V.US)$ $MasterCard (MA.US)$ $PayPal (PYPL.US)$ $Dow Jones Industrial Average (.DJI.US)$ $NASDAQ (NASDAQ.US)$ $Advanced Micro Devices (AMD.US)$ $Ford Motor (F.US)$ $Disney (DIS.US)$ $American Airlines (AAL.US)$
Disclaimer: The above sharing is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor and consider your investment objectives, financial needs, financial position and risk profile before making any investment decision.
$Apple (AAPL.US)$ $S&P 500 Index (.SPX.US)$ $Amazon (AMZN.US)$ $Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ $Microsoft (MSFT.US)$ $Netflix (NFLX.US)$ $Meta Platforms (FB.US)$ $Tesla (TSLA.US)$ $Taiwan Semiconductor (TSM.US)$ $Bank of America (BAC.US)$ $JPMorgan (JPM.US)$ $Citigroup (C.US)$ $Visa (V.US)$ $MasterCard (MA.US)$ $PayPal (PYPL.US)$ $Dow Jones Industrial Average (.DJI.US)$ $NASDAQ (NASDAQ.US)$ $Advanced Micro Devices (AMD.US)$ $Ford Motor (F.US)$ $Disney (DIS.US)$ $American Airlines (AAL.US)$
Disclaimer: The above sharing is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor and consider your investment objectives, financial needs, financial position and risk profile before making any investment decision.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Dadacai OP MoneyComesMoneyStays : Great insight. Thanks for chiming in.
OneLeggedLinnea : Thank you I’m new to this and was feeling guilty about spending but I feel better about it now m
Dadacai OP OneLeggedLinnea : You’re welcome. May your investment journey go well.
iamiam MoneyComesMoneyStays :
Dadacai OP iamiam : Hi, thanks for sharing that article. It highlights the importance of identifying outperformers and exiting underperformers so we should monitor the market and portfolio performance regularly. If I understand the article correctly, it states the total lifetime gain was zero if one had invested in only underperforming stocks, not that their value became zero.
iamiam Dadacai OP : true, but the reason I can't tell you what percentage actually go to zero.
"Because you can’t track delisted stocks this is not so easy to ascertain. Once a stock has been delisted it’s usually on its way to bankruptcy and brokers and other online resources simply pare stocks that are no longer active. TC2000, for instance, simply removes delisted stocks from its database so there is no record of stocks no longer listed there. Nor is there any point in doing so"
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Gautam Nb
iamiam Dadacai OP : in 1998 there were 7562 stocks listed on us exchanges in 2015 there were 3812, today there are roughly 5300 after adding a record number of SPACs in 2020. So where did they go? and how many of the new ones will be around next year, or ten years?
Dadacai OP iamiam : That’s very interesting information for us to ponder. I do know of cases where shareholders were compensated fairly or made a profit when the company was delisted so delisting isn’t necessarily bad.
iamiam Dadacai OP : again true but why juggle fire? and that's delisting, on the way to delisting there will be reverse splits and all kinds of moves to suck money from investors in an attempt to stay afloat. But once it hits zero then-
Well, it’s certainly not pleasant if you hold a long position. But the answer is simple: You lose the amount of your investment. Whatever value your stock had on paper is gone.
iamiam iamiam : at zero your involved in class action lawsuits trying to pick the bones of the carcass
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