Is investing in the stock market gambling?

Is investing in the stock market gambling?

Posted: kanscx On: 26.05.2017

They both believe they can predict the future, and they sometimes fall into the trap of making decisions with their hearts instead of their brains. And of course, they both hate to lose.

But don't let those similarities fool you. Gambling on sports may be more fun, but it's definitely a more risky use of money than putting it in the stock market. In the long run, investors have the chance to make more money because there are fewer downside risks. To put it another way, the stock market is a lot more forgiving than the MGM Grand let alone your local sports bookie.

is investing in the stock market gambling?

It's easy to see why fans may be tempted to gamble on their favorite teams and athletes. Gambling on football star Peyton Manning to win might seem like a safe bet, especially compared with picking winners in the stock market. And in neither instance can you be guaranteed to be correct," said Randall Fine, managing director of The Fine Point Group, one of the casino industry's largest consulting firms.

Manning is really, really good at what he does for a living. Heck, even his commercials are funny.

He asked for his identity to be withheld due to legal concerns. Gambling on sports tends to be a zero-sum game. The stock might go up and down some, but it typically doesn't go to zero. Apple and 9 other stocks hit new records. Investors also have the ability to spread their money out among many stocks.

People often invest in funds that buy dozens or even hundreds of stocks, which helps reduce the risk. And investors have greater access to tools that can minimize the risk of losing money. For example, a stop-loss order instructs a broker to dump a stock when it tumbles below a specific price.

At the same time, investing in stocks actually carries higher upside potential. While many stocks offer steady returns, investors sometimes hit the jackpot think: A stock can theoretically be held onto for an infinite amount of time, but a sports bet can end in the blink of an eye. Even the unlucky investors who jumped into the market at its peak in October eventually made their money back when stocks reclaimed their pre-recession levels in Start your day right with the latest news driving global markets, from major stock movers and key economic headlines to important events on the calendar.

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is investing in the stock market gambling?

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