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

[klf]

Actually I can't find a good reason to compare these different things. It is true that there is high level of uncertainty in markets, but it is possible to find a proper strategy to trade with sufficient accuracy in markets.

Not only in share market investments got these uncertainty but most of all investments comes with some uncertainty so we should analyse and need to invest based on our risk factor but gambling is not for investment, it just to pass some time and to spend money to pass our time.

[arthurminton]

I would say no there is no difference in buying stocks on a stock exchange and gambling , all you can do is research carefully and intensively about the stock before buying it, also see the upside and downside risk for the stock, whereas in gambling you should follow a specific strategy and also manage your money by managing risk carefully, and effectively.

[shulio]

I would say no there is no difference in buying stocks on a stock exchange and gambling , all you can do is research carefully and intensively about the stock before buying it, also see the upside and downside risk for the stock, whereas in gambling you should follow a specific strategy and also manage your money by managing risk carefully, and effectively.

Obviously there are some different. In gambling what matters is only pure luck and having strategy will not be helping much howeveer with stock buying then it is a different story   ecause research and strategy will play a very important role for getting profit

[shanem]

I would say no there is no difference in buying stocks on a stock exchange and gambling , all you can do is research carefully and intensively about the stock before buying it, also see the upside and downside risk for the stock, whereas in gambling you should follow a specific strategy and also manage your money by managing risk carefully, and effectively.

Obviously there are some different. In gambling what matters is only pure luck and having strategy will not be helping much howeveer with stock buying then it is a different story   ecause research and strategy will play a very important role for getting profit

Unless you have done extensive research on the stock, buying a stock in the short term can be similar to gambling. When you pick a stock to buy because of your gut feeling, it is the same as gambling.

[faince222]

There isn't any difference because when you buy shares in the stock exchange and gambling you buy a portion of some company.

[KingZee]

Gambling is instant, and could count as a "high-risk, high reward" sort of thing.

As opposed to investing in stock markets, the risk that you lose it all, is extremely low, unless you're deliberately trying to. If you play the stock game very patiently, you're almost guaranteed to not lose any funds.

[bitlancr]

Gambling is instant, and could count as a "high-risk, high reward" sort of thing.

As opposed to investing in stock markets, the risk that you lose it all, is extremely low, unless you're deliberately trying to. If you play the stock game very patiently, you're almost guaranteed to not lose any funds.

Correct. although stocks can be risky too if you go into warrants and other third party stock products, the general risk factor with stocks is  way less then gambling.
If you buy stocks of a big company, your risk could be close to 0, if you outlook is on the 5-year term.

[Slark]

There isn't any difference because when you buy shares in the stock exchange and gambling you buy a portion of some company.

What? It is completely untrue. Buying shares are investing your money in some company you think have chances to prosper well, therefore will gain your profit from your shares.
If you gamble you money you are not allocating it as capital, but instead you are trying to profit from short term 'luck spike'.

In short in investing, the odds are in your favor. In gambling, the odds are against you.

[pereira4]

With gambling it's impossible to make an informed bet, only you can try to guess your chances to win in raw statistics, with stocks you can implement an strategy which can contain raw statistics (technical analysis) and context and evaluation of the situation as well in other words an informed bet (fundamental analysis).

[DarkStar_]

The difference is that in stocks, you can make an informed decision. My dad makes lots of money every year with stocks, which is very unlikely with gambling. Gambling is mostly luck, stocks are part luck part skill.
In gambling, the odds are also against you.

[Tavos]

Stocks can actually make you profit in the long term, while gambling should cause you to lose in the long term.
Stocks are safer and the odds can be in your favor, while in gambling the odds are against you. You can also make an informed decision with stocks while gambling is going in blind.

[wikenpp]

The difference is that in stocks, you can make an informed decision. My dad makes lots of money every year with stocks, which is very unlikely with gambling. Gambling is mostly luck, stocks are part luck part skill.
In gambling, the odds are also against you.

That is so true. It's about information. With stocks you can educate yourself and decide wheter betting on the right stock could be good.
By betting your are dependant on luck and luck alone.

[Erza]

Stocks can actually make you profit in the long term, while gambling should cause you to lose in the long term.
Stocks are safer and the odds can be in your favor, while in gambling the odds are against you. You can also make an informed decision with stocks while gambling is going in blind.

May be you have that kind of possibility but it still depends on your stocks exchange too. You need to calculate everything until the worst case if really pure on stocks because not always but I saw some of stocks also can scammed your money though. It is one of the possibility too. But as I can say gambling risk is higher and the payout is better and stock like you said safer but it takes a longer time and low odds. And if you really lucky I think gambling is much profitable than stock

[Supercrypt]

The difference is that in stocks, you can make an informed decision. My dad makes lots of money every year with stocks, which is very unlikely with gambling. Gambling is mostly luck, stocks are part luck part skill.
In gambling, the odds are also against you.

That is so true. It's about information. With stocks you can educate yourself and decide wheter betting on the right stock could be good.
By betting your are dependant on luck and luck alone.

Yes buying share must be based on the aspects of the particular company and it's activities. So, there are calculated risk and luck factor is playing very small role in that.
But, gambling is fully based on luck and there is no possibilities for calculations.

[raaajlucky]

The difference is that in stocks, you can make an informed decision. My dad makes lots of money every year with stocks, which is very unlikely with gambling. Gambling is mostly luck, stocks are part luck part skill.
In gambling, the odds are also against you.

That is so true. It's about information. With stocks you can educate yourself and decide wheter betting on the right stock could be good.
By betting your are dependant on luck and luck alone.

In stock market the most important thing is time means at what price your buy the share and when you exit. If you do any one mistake than you may lose lot of money in share market.

[Revelation Machine]

The difference is that in stocks, you can make an informed decision. My dad makes lots of money every year with stocks, which is very unlikely with gambling. Gambling is mostly luck, stocks are part luck part skill.
In gambling, the odds are also against you.

That is so true. It's about information. With stocks you can educate yourself and decide wheter betting on the right stock could be good.
By betting your are dependant on luck and luck alone.

In stock market the most important thing is time means at what price your buy the share and when you exit. If you do any one mistake than you may lose lot of money in share market.

You won't loose a lot of money on the stock market for small mistakes. You can always hold and wait for the dividends.

[fullypak]

The difference is that in stocks, you can make an informed decision. My dad makes lots of money every year with stocks, which is very unlikely with gambling. Gambling is mostly luck, stocks are part luck part skill.
In gambling, the odds are also against you.

That is so true. It's about information. With stocks you can educate yourself and decide wheter betting on the right stock could be good.
By betting your are dependant on luck and luck alone.

In stock market the most important thing is time means at what price your buy the share and when you exit. If you do any one mistake than you may lose lot of money in share market.

You won't loose a lot of money on the stock market for small mistakes. You can always hold and wait for the dividends.

But not all companies pay dividends to share holders so you need to find a good company shares to get the dividends. Once you buy a share at reasonably good price than surely over the time you will make s good returns and if you monitor continuously then you will not lose much from share market investments.

[Divinespark]

Share prices reflect the discounted present value of future cash flows - at least in theory if not always in practice
Gambling in the strictest sense is luck-based. So difference between gambling and investing is stark. Speculation is a different beast though.

[dodgecharger]

For buying shares ,as an investors, they should do the due diligent works before buying them otherwise blindly buying shares whose represented companies are probably about to collapse will lead you lose all of the investment. Buying shares sometimes likes gamble  as well. You should know what you are doing then you will be safe with your money. In gamble you should know how to control yourself.

[Divinespark]

To be sure, self control is important for investing as well. But a good investor can ride out a bad phase whereas a gambler would lose his shirt as gambling outcomes are binary events