Let’s Settle the “Investing is Like Gambling” Debate Once and For All
People (especially outsiders) often say that investing in stocks and gambling are similar – some even go as far as to say they are equal. They are wrong, of course, although there is a grain of truth in their claims. Both activities involve money, a certain amount of risk and both of them can either make you rich or push you into poverty. There are similarities between the two, but these are only apparent. The differences, in turn, are much more fundamental and go way beyond the surface.
Gambling is, at its roots, a form of entertainment
Gambling, especially online gambling, is a form of casual entertainment. Online casinos like the All Slots offer their players a quick, easy, and accessible way to play online slots and other games, either for real money or for pure pleasure. Most of the times they wager not with a major win in mind, but for the extra thrill of risking a certain amount, even if it’s a symbolic value expressed in their own currency.
Gambling at a casino is completely unpredictable – as it is supposed to be. The licenses based on which casinos like the All Slots function require them to be completely fair – in this context, fairness is equal to “randomness”. The fair nature of the All Slots’ random number generators undergoes regular audits performed by third parties. This is all done to ensure that all the games at the All Slots are truly random, excluding any possibility of manipulation performed by the players or the operators.
Gambling is entertainment, even if some of the people involved in it use it as their main source of income. Investing, in turn, is nothing like it.
Investing involves a lot of planning – among others
While investing in stocks bears certain risks, it has one feature that makes it very different from gambling: it’s often predictable. I say “often”, since investing has many forms that come with increased risk of loss – like futures, options, or commodities trading. Still, when it comes to gambling – especially at casinos – losing money is almost a certainty. When playing at a casino, the odds are always against you. Besides, gambling is not (and should not be considered to be) an activity fit for moneymaking. Even the most hardcore gamblers are in it not for the money, but for the action.
Gambling involves a lot of fun, enthusiasm, and action – investing, in turn, has to be done with a cool head. This makes gambling and investing similar to each other – if it’s done in a hot-headed fashion, the result is always a loss.