Is there a difference between buying shares in the stock exchange and gambling?

[mixan]

I have no idea about the actual definitions of "gambling" and "investment", but to me, if you are an experienced stock trader and decide to buy shares with a good reason after researches, I would classify your action as an "investment". And if you just listen to your friend's advice to buy a stock without knowing anything, it is more like a "gamble" IMO.

That is the thing you have to decide on doing.
An uneducated guess based on unfounded advice from other's is taking a gamble if something of value of any kind is involved.
A researched, well thought out strategic plan of action towards making a solid acquisition of something of value in order to receive a steady stream on income from it is an investment.
Experienced stock traders are educated enough and know the game make good investments in the stocks they buy. Other ones that don't do it as good are just playing the stock market and are gambling with their investments.

[bitart]

I have no idea about the actual definitions of "gambling" and "investment", but to me, if you are an experienced stock trader and decide to buy shares with a good reason after researches, I would classify your action as an "investment". And if you just listen to your friend's advice to buy a stock without knowing anything, it is more like a "gamble" IMO.

That is the thing you have to decide on doing.
An uneducated guess based on unfounded advice from other's is taking a gamble if something of value of any kind is involved.
A researched, well thought out strategic plan of action towards making a solid acquisition of something of value in order to receive a steady stream on income from it is an investment.
Experienced stock traders are educated enough and know the game make good investments in the stocks they buy. Other ones that don't do it as good are just playing the stock market and are gambling with their investments.

That's right, if you want to start investing in stock exchange, you should first invest your time in learning the rules and the market. If you don't want to lose, you should be prepared and think every position opening twice and use some risk management strategy to protect your funds. In this case you can win on shares, otherwise you can lose too, like with gambling.

[Oscilson]

There is a big difference. In gambling, the participants totally rely on hope. They may stand a chance of either winning or loosing and it is something that is time bound. Gambling for a particular game for example will only hold within the 90 minutes of the match and thereafter, you will have nothing to say about it. With stock exchange, a change may trigger you to buy or sell shares. You can as well sit back and relax waiting for that time when the shares will have gained a lot of value. So at the end of the day, irrespective of the wait, in shares you are sure to get returns, but in gambling their is divided hopes.

Yes. In stock investment, you can do research on the companies. If the company's business is sound, you buy shares, the share price might rise in the future. However, the share price is also affected by market conditions.
With gambling, especially for some types, it is mainly determined by luck minus house edge.

[raaajlucky]

Investing in shares is for Long term appreciation but investing in gambling is to lose instantly

[bitart]

Investing in shares is for Long term appreciation but investing in gambling is to lose instantly

Maybe it's easier to say that gambling is an instant feedback about winning or not. You can't say that it is always lose,because sometime some people will win but there is no guarantee that you will win ever.

[Eastwind]

In investment, you have paper loss or gain as soon as you buy a share. It will not turn into a actual loss or gain until you sell your share. To that extent, it is similar to gambling, you know the gain or loss instantly. Share investment is for the long term, while gambling is for the short term, some times, second later result.

[Supercrypt]

Investing in shares is for Long term appreciation but investing in gambling is to lose instantly

Yes. Gambling may give you instant result of profit or loss from your investment.But from share trading we can not expect instant results as it require some time to get us profits. usually if we choose good shares we can find shares are good investments. Same way gambling also may give us profits in longer term.

[fullypak]

Investing in shares is for Long term appreciation but investing in gambling is to lose instantly

Maybe it's easier to say that gambling is an instant feedback about winning or not. You can't say that it is always lose,because sometime some people will win but there is no guarantee that you will win ever.

I think what you said is correct because some times some people win in gambling means it is not a good option for investment or growing our money. Also those some people might have lost those winnings if they continue gambling by now. I think if any one want to get a good returns over the time then share market invest will be a better option over gambling.

[raaajlucky]

Investing in shares is for Long term appreciation but investing in gambling is to lose instantly

Yes. Gambling may give you instant result of profit or loss from your investment.But from share trading we can not expect instant results as it require some time to get us profits. usually if we choose good shares we can find shares are good investments. Same way gambling also may give us profits in longer term.

Most likely gambling will give instant loss but not any profits if one can gamble for long time

[Joel_Jantsen]

There is no difference at all .Speaking logically its all the same .Maybe the only myth people need to overcome is gambling is always related to people with unethical approach in life and share market is related to white collar classy folks way to getting rich in a sophisticated matter .At the end of the day they have to depend on luck or right decisions to win .Greed would leave you on streets if you try to become rich in one day .Gambling needs a minimal investment but share market as some official terms like dmat account n stuff.You can call sharemarkst as legal gambling .

[Aemon]

I personally don't think there is that much of a difference.  In the end you are risking your money to gain money.  I think the people who say differently problem won some cash from the market and assume its safe, it isn't.

[bitart]

There is no difference at all .Speaking logically its all the same .Maybe the only myth people need to overcome is gambling is always related to people with unethical approach in life and share market is related to white collar classy folks way to getting rich in a sophisticated matter .At the end of the day they have to depend on luck or right decisions to win .Greed would leave you on streets if you try to become rich in one day .Gambling needs a minimal investment but share market as some official terms like dmat account n stuff.You can call sharemarkst as legal gambling .

It can be a way of legal gambling if you take your decisions basedon nothing, it's pure gambling then. But, if you open your positions based on your own research, information you collect from the market, using historic data and even technical markers on the chart, it can be gambling too but with much higher winning chance.

[mirana12345]

I personally don't think there is that much of a difference.  In the end you are risking your money to gain money.  I think the people who say differently problem won some cash from the market and assume its safe, it isn't.

No one said any investment is 100% safe, but at the least with stock shares you're placing money on something other than just odds on a payout table.
The only way those two investments can be considered to have even chances of making a profit is if you have no knowledge about stock market and shares you are investing in.

[MinerHQ]

I personally don't think there is that much of a difference.  In the end you are risking your money to gain money.  I think the people who say differently problem won some cash from the market and assume its safe, it isn't.

I think you understood share market invest wrongly that's why you're saying both are same. In actual case share market investment is nothing but your investing in certain business and expecting them to do better job and give you profits but gambling is just based on pure luck. In gambling either you win or lose all your money instantly but in share market you will not lose instantly all your money.

[raaajlucky]

Share market investment usually will give profits if one do a proper study before investing and ready to wait but in gambling one most likely will lose all.

[Light]

The share market differs from other forms of gambling (such as dice) where you can use knowledge and skill to actually influence the outcome - whereas in dice no amount of skill is relevant, it's purely chance. This difference is huge IMO, if you have skill in picking shares you have a better chance of coming out ahead than you do in dice where you're inherently likely to lose in the long term. Honestly, while the share market is kind of gambling (luck does have a factor) I would split gambling into two categories:  1) -EV (ie. dice) 2) potential +EV (sports betting, poker, shares) where depending on your skill you can come out ahead.

[Erza]

The share market differs from other forms of gambling (such as dice) where you can use knowledge and skill to actually influence the outcome - whereas in dice no amount of skill is relevant, it's purely chance. This difference is huge IMO, if you have skill in picking shares you have a better chance of coming out ahead than you do in dice where you're inherently likely to lose in the long term. Honestly, while the share market is kind of gambling (luck does have a factor) I would split gambling into two categories:  1) -EV (ie. dice) 2) potential +EV (sports betting, poker, shares) where depending on your skill you can come out ahead.

But you can't randomly pick it using skill because that picking is based on knowledge and need some luck too, actually it is almost as same as gambling but it has nothing to do with skill though and the payout is good and fast if I can say about gambling compare to share

[Joel_Jantsen]

There is no difference at all .Speaking logically its all the same .Maybe the only myth people need to overcome is gambling is always related to people with unethical approach in life and share market is related to white collar classy folks way to getting rich in a sophisticated matter .At the end of the day they have to depend on luck or right decisions to win .Greed would leave you on streets if you try to become rich in one day .Gambling needs a minimal investment but share market as some official terms like dmat account n stuff.You can call sharemarkst as legal gambling .

It can be a way of legal gambling if you take your decisions basedon nothing, it's pure gambling then. But, if you open your positions based on your own research, information you collect from the market, using historic data and even technical markers on the chart, it can be gambling too but with much higher winning chance.

Yes ! Most definitely ! As warren buffet and other big market cats say its all based on your knowledge and research and right decisions at the right time.In this way it can not be gambling as its completely based on your knowledge otherwise for a fluke its totally based on luck which makes it gambling.

[The Sceptical Chymist]

If you don't know the difference between a stock market security and a game in a casino, then there's not much on these boards that's going to help you.  when you buy a stock, you are investing in a company with earnings and everything else that goes along with it, and when you roll the dice on a craps table, you're just rolling the fucking dice on a craps table.

[Patatas]

I think stock exchange one can make money in the long run but in gambling most likely every one will lose money. What you guys think?

Share market players are smart,they tend to make decisions based on historic patterns/data analysis and they seem to be correct most of the time [we'e speaking of legit share market traders from the wall street and not bunch of gamblers who read about sharemarket yesterday and made a dmat account today].While gamblers are people looking for winning streaks totally dependent on luck.There is no rocket science involved.