It appears that more and more individuals are taking up the past-time, soon-to-be a profession of turning stocks into a trading job, and accordingly learning how to take calculated risks professionally.
When talking stocks and trading, it is often pondered upon and even wondered out loud: What is the difference between trading stocks and gambling?
The fact that trading stocks is increasingly gaining in popularity and overall accessibility means that people are starting to ask these questions, and more.
Perhaps the first jump-off point would be to take a look at the definition of what gambling really is.
Gambling is defined as the following:
- to “take risky action in the hope of a desired result”
Or, as the Cambridge Dictionary terms the definition of gambling, it is “the activity of risking money on the result of something”.
Given the fact that by definition what we term gambling could very well be an apt explanation of what trading is, perhaps the answer to the initial question could be a resounding: Yes!
By trading stocks, a trader is quintessentially the same as the defined explanation of gambling. In other words, the trader will take ‘risky action in the hope of a desired result’. Of course, all decisions made by the stock trader would need to be rooted and vetted against great market insights, knowledge of stock fluctuations and trends.
All in all, the road that leads to the trader’s decision to buy or sell stock is by and large based on speculation – inevitably, this may easily be seen as gambling.
Although online slots gaming sites hold the more obvious type of gambling, seeing as though players that frequent top-notch casino sites are willingly and actively engaged in gambling. Let’s take a look at an example of this type of gambling:
Player A logs into their casino gaming account at any given time, for example at mFortune casino or Casino-mate.com, and gets ready to place a wager on their favourite online slots casino game, after which gambling ensues. This type of scenario is indeed a journey into online slots gambling, and is done so purposefully by the individual playing.
When comparing this type of risky action to stocks and the trading of stocks, the pivotal difference lies in the fact that most often individuals trading stocks may not even be aware of their own gambling tendencies.
Again, the main difference between trading stocks as gambling, and actual stock trading lies in whether the traders operate and make decisions driven by speculations based on calculated risks or uncalculated risks.
Truth be told, we cannot fully say that gambling and stock trading is one in the same thing – what we will, however, agree with is the fact that untrained and unseasoned, as well as inexperienced stock traders may well be venturing into the stock trading world with gambling tendencies under their wings, but when tackling trading stocks with the proper trading fore-knowledge accordingly, then it will not be a gambling method at all.
Altogether, one could say that: yes, stock trading is gambling after all – but this sentiment will only ring true when the traders take those uncalculated risks, resulting in outcomes that have no basis of foundation to backup the desired and hoped for results.
Investing in stocks when using the correct vetting instruments and trading know-how should never never be a gamble, which is why traders are encouraged to always get their experience and knowledge down, before attempting to trade in any type of stocks accordingly.