Is investing on the stock market the same as gambling?

Similar questions: investing stock market gambling.

If you're thinking about investing in the stock market I would suggest that you do your homework to see how well the stocks you're interested in have done over the past few years. Secondly, you might want to start with a mutual fund. They are generally safe.

You may not make a quick profit if that's your goal. But over the years they eventually over time build up a substantial amount of security in the long run. Good luck.

When you invest in the stock market, you are taking a gamble, but not to the extent as just gambling. That is because, when you place a bet, once the bet window is closed, you can't withdraw the bet. In the market, you can watch the performance of the stocks you have invested in and if you are not happy, you can withdraw the money.

The market becomes a gamble when you just buy stock with no idea of what you are doing or the tools you can use to protect your money. If you have a stop loss order in place, once the share of stock reaches that price, the stock is sold. For example, you have a stock that is currently at $50/share.

You have a stop loss on that stock at $40. You now don't have to watch the performance of that stock unless you want to. If the price of the stock drops to $40, the stock is sold automatically, thus preventing you from losing the rest of your investment.

If you start trading in options, the puts and calls really turn the market into a gamble. Now you are gambling that the market will go up or down and try to make money based on you best guess. There are millions of people today who are gambling in the stock market by the way their money is sitting inside their 401(k).

The have picked investment choices and then they just go about their business until they get their quarterly statement and find out they have lost 30% of the value. This happens because the 401(k) is not an investment plan, it is a retirement plan. They pick equities that don't match their risk profile, have no understanding of how those equities work, and then are surprised that the value is up or down.

They should not have been in those equities in the first place, but the low fixed rate of return forced them into making unwise choices. The market is always a gamble, but it is not the same gamble as when you place a bet.

Worse, at least with slot machines you know you are going to on the average, get a 97% payback. With investing, you can lose it all.

In typical gambling, you're guaranteed to lose; if you win, it was a mistake. Investing offers you the opportunity to win; if you lose, it wa a mistake. Another difference is that investing allows you to lessen the chance of losing by increasing your research and knowledge, things that never help gambling.

Stocks are variable, which means there is no guarantee. I would study ahead of time and go with dividend stocks. (usually pays income/dividend semi annually or quarterly).

Go with long standing companies that have increased their dividend each year for at least 10 years. You can have the dividend reinvested which allow for your portfolio to grow until you need the income. Plus, dividends are only taxed at 15% vs regular income tax which could be 35% or more.

Keep these stocks for awhile so you will not have to pay short term capital gains. The idea of dividend stocks is to buy them, reinvest the dividends and go on with your life.

" "What is the stock market?" "A stock market question. " "what is the role of education in successful financial planning? " "Question about Investing in mutual funds, stock market etc.But being paid in Chinese yuan currency.

Question about Investing in mutual funds, stock market etc. But being paid in Chinese yuan currency.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.