Would you consider investing in the stock market a form of gambling?

[darkxshade]

The differences I can think of is that there is no house advantage and there are more winners than losers(because of dividends, etc) though you could consider brokerage fees a form of house advantage. Also this "game" can be won by skill(diversifying, keeping up to date on the market, etc) so you can play smart and almost always win though there's still always a chance you could lose. I consider the stock market the rich mans casino.

 

[PricklyPete]

I consider is similar to Poker.

If you know what you're doing...you are likely to come out ahead in the long run.

If you don't know what you are doing...put your money in an index fund.

 

[SearchMaster]

Investing isn't really like gambling, but "playing the stock market" is.

 

[torpid]

Originally posted by: SearchMaster
Investing isn't really like gambling, but "playing the stock market" is.

QFT

Wise investing in the stock market always beats investing in bonds over a 20 year period. I don't see how that can be called gambling.

 

[vi edit]

Options, day trading, and penny stocks, yes. Anything speculative in nature is a gamble.

But "buy and hold" of mid/large cap for long term investing is pretty safe in the long run. Sure you'll have some flops and some downtime, but over 20 years it'll make up for itself.

 

[Alchemist99]

It's all about your approach; do you do your due diligence? Do you day trade? Mutual funds vs. penny stocks are you buying just on relative price or fundamentals. Are you leveraged with a margin account, are you in it for long term goals or just the excitement.
Do you watch your stocks on an hourly basis with you blood pressure matching the graph chart?
No matter what investing in the market is a gamble how wise you make it is up to you.

 

[DaShen]

You should put depends in your poll. Some people play it like gambling, some people honestly invest.

It depends on the risk level, your own personal percentage of money you are willing to invest/risk, the percent of interest...

 

[BlueFlamme]

Whether it is gambling all determines on the objective.

Compare your commute to work with Russian Roulette. Both are a gamble on your life, just with different odds. It is the objective that makes your commute not a gamble.

When you invest your objective is to earn money. The method this occurs is what determines whether it is gambling or not. If you are going to make money because the company earns money (via dividends) then it is no more of a gamble than putting money into a savings account (or if their stock value goes up because of a tangible increase in company worth)

However, if you are trying to ride the wave of buy low/sell high just based on people's perspective of the stock value, then you are gambling. Your objective is not to make money because you invested in a company and they will earn more, your objective is to make money because people believe that company is worth more than you paid.

 

[speg]

No, gambling is "he act of playing for stakes in the hope of winning". You arn't playing or winning anything. You are making an investment.

 

[vi edit]

Originally posted by: speg
No, gambling is "he act of playing for stakes in the hope of winning". You arn't playing or winning anything. You are making an investment.

Options & penny stock are nothing more than that. You are playing in hopes of winning. In fact, most idiots that I see investing in penny stocks would probably be better off hitting the black jack tables at a casino. At least at the casino you get a free cocktail or two before losing your money.

 

[FoBoT]

contributing to my 401(k) with most going into a S&P 500 index fund is not gambling, it is investing in my future.