The fine line between market investment and sports gambling

[robelneo]

Question: "Market investors and hedge funds bet the price of an asset will increase or decrease by buying or shorting stocks. Gamblers bet one sports team will defeat another by placing bets. Is there a real difference between these two things. Should one be illegalized while the other is not."

I suspect some who have tried their hand at both gambling and crypto exchange trading might identify with these remarks. High risk correlated with high reward ventures such as sports gambling and market investment might both qualify as gambling. There may be many cultural and societal similarities between equity traders and sports gamblers as well. With big data and algorithm based approaches being the most successful innovations of recent times, in both areas.

There are difference and similarity, both are risky you can lose everything if you do not know how to analyze and you are not knowledgeable on how things work, the motivation that drives you to participate in both market is profit and rewards, if you are a market investor coming in the sports betting you will find all the elements of investing in the market in the sports gambling, you can't just place your bet and hope it will win, there should be analysis and compelling reasons, why you come out with that decision, that's also the same for sports bettors coming in the investment market.

Both should be legalized because they can be regulated and they can be taxed and both work on trust if investors and bettors see that they are regulated they easily participate .

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[imstillthebest]

There are difference and similarity, both are risky you can lose everything if you do not know how to analyze and you are not knowledgeable on how things work, the motivation that drives you to participate in both market is profit and rewards, if you are a market investor coming in the sports betting you will find all the elements of investing in the market in the sports gambling, you can't just place your bet and hope it will win, there should be analysis and compelling reasons, why you come out with that decision, that's also the same for sports bettors coming in the investment market.

Both should be legalized because they can be regulated and they can be taxed and both work on trust if investors and bettors see that they are regulated they easily participate .

analysis is optional  . i tried investing and gambling without analysis and result is win because im lucky but analysis can make your game more surer .
 i agree that profit is my main motivation to join gambling and investing but aside from profit i join them too because i have nothing to do and i want something to keep me busy throught the day because of quarantine .
regulated or not you can file your own tax or if you live in places where tax is compulsory

[Heisenberg_Hunter]

On a broader perspective both are different. Betting on oil prices is different from betting on a football match IMO. On the longer term, if more and more people depend on oil products rather than moving over to electrical automobiles we would be noticing a sharp increase in prices but on the other hand if more and more global population move towards electric products, we would be seeing a decrease in huge demand and hence oil prices wouldn't rise up so high in the upcoming decades. So I would consider this betting lies with an important factor of how technology is rising, for example if more people are interested towards electric cars we could never be sure future oil prices wouldn't be so higher.

But the outcome of a football match can be partially predicted based on the past performances of the team and the key players present in the current match. Also there are possibilities that players could be bribed and they may not be playing well on a few particular days. Hence on a broader sense, the outcome of the match is depended on the player and we can never predict completely if they might be playing really good or not. Nowadays stocks has become equivalent to crypto i.e there are so many manipulative pumps and dumps like how Gamestop happened where a powerful person like Elon and a community like Reddit could play with the people's money. On a conclusion note both crypto, stock market can be very well considered as gambling along with betting on a sports game.

[johhnyUA]

On a broader perspective both are different. Betting on oil prices is different from betting on a football match IMO. On the longer term, if more and more people depend on oil products rather than moving over to electrical automobiles we would be noticing a sharp increase in prices but on the other hand if more and more global population move towards electric products, we would be seeing a decrease in huge demand and hence oil prices wouldn't rise up so high in the upcoming decades. So I would consider this betting lies with an important factor of how technology is rising, for example if more people are interested towards electric cars we could never be sure future oil prices wouldn't be so higher.

But the outcome of a football match can be partially predicted based on the past performances of the team and the key players present in the current match. Also there are possibilities that players could be bribed and they may not be playing well on a few particular days. Hence on a broader sense, the outcome of the match is depended on the player and we can never predict completely if they might be playing really good or not. Nowadays stocks has become equivalent to crypto i.e there are so many manipulative pumps and dumps like how Gamestop happened where a powerful person like Elon and a community like Reddit could play with the people's money. On a conclusion note both crypto, stock market can be very well considered as gambling along with betting on a sports game.

Good article man. I would add that oil price is also depend to the amount of traders that buying/selling futures on oil. And football outcome don't depend on how many people bet on this match.

For example, you can predict price moves in oil if you know how much people bought oil futures and so on. And you're not able to know who will win in football match if you know that many people bet on team A. Chance of winning doesn't increase for team A because many people bet on it.

[Silberman]

I have tried both and let me tell you that market investment or trading like they call it is way more dangerous than gambling.A gambling event for example sport game takes time like 90 minute a match and gives you time to reflect while the market changes every minute and if you become addicted you can cause yourself a lot more damage than gambling and this in a very short time.

It really depends on what you mean by dangerous, I like gambling but very few people have any chance of making money on the long term, while when it comes to trading even if the odds are still small there are many more chances this is indeed going to happen, so from that point of view gambling would seem more dangerous, but when we think that most casinos are going to limit the amount you can bet on each roll of a dice and this is not true when it comes to trading this means that you can lose a lot more with a single bad trade than a single bad bet making trading more dangerous from that point of view.

[Lorence.xD]

I have tried both and let me tell you that market investment or trading like they call it is way more dangerous than gambling.A gambling event for example sport game takes time like 90 minute a match and gives you time to reflect while the market changes every minute and if you become addicted you can cause yourself a lot more damage than gambling and this in a very short time.

You can hold your investments in the long term and you can pull it out anytime you feel like while in gambling overtime you are losing more money even if you are winning because the wins of the present is to offset the losses from the past and in gambling losses tend to incur faster than wins so I don't think that investment is more dangerous than gambling, maybe if you are on a pyramiding scheme then maybe your investment is in danger.

[bitterguy28]

I have tried both and let me tell you that market investment or trading like they call it is way more dangerous than gambling.A gambling event for example sport game takes time like 90 minute a match and gives you time to reflect while the market changes every minute and if you become addicted you can cause yourself a lot more damage than gambling and this in a very short time.

You can hold your investments in the long term and you can pull it out anytime you feel like while in gambling overtime you are losing more money even if you are winning because the wins of the present is to offset the losses from the past and in gambling losses tend to incur faster than wins so I don't think that investment is more dangerous than gambling, maybe if you are on a pyramiding scheme then maybe your investment is in danger.

HArd fact but true , We may think that winning is on ours today but we don't tend to remember that our wins today is the losses we have in the past.
I Know also that we will never win in gambling if we don't know how to invest while in gambling.

[ethereumhunter]

I have tried both and let me tell you that market investment or trading like they call it is way more dangerous than gambling.A gambling event for example sport game takes time like 90 minute a match and gives you time to reflect while the market changes every minute and if you become addicted you can cause yourself a lot more damage than gambling and this in a very short time.

You can hold your investments in the long term and you can pull it out anytime you feel like while in gambling overtime you are losing more money even if you are winning because the wins of the present is to offset the losses from the past and in gambling losses tend to incur faster than wins so I don't think that investment is more dangerous than gambling, maybe if you are on a pyramiding scheme then maybe your investment is in danger.

HArd fact but true , We may think that winning is on ours today but we don't tend to remember that our wins today is the losses we have in the past.
I Know also that we will never win in gambling if we don't know how to invest while in gambling.

So we are never winning because we still carried the losses from the past unless we can hit the jackpot, which I do not think will be easy to do. Many people are trying to playing gambling with money, but that only gives your money without winning.

But if in the investment, you will see the profit come to you in the future, although the price now is down, the chance for the price to increase will still be bigger. So you can choose what you want to do

[iv4n]

There is that fine line between these two... I am talking about that for years!
Everything is gambling, you invest/bet/buy with one goal, that goal is making a profit! You risk, and according to the risk level and your investment/bet/buy there's a reward you can expect in the end!
The fine line is the preparation before making a move! For roulette (just an example) you don't need it, you just choose red/black/green, or number, you place a bet and you see the outcome in a moment! With trading, investing, sports betting... you need to prepare! You need to check many things and only then to make a move! After making a move certain period of time needs to pass before we see the outcome!
Whatever option you choose, remember winning and losing are parts of all these games! I will call them games because it's a game where you play and depending on your skills and the bag you carry will affect your rank in the specific game!

[crwth]

I recently read that there is a similarity between sports gambling and market investment like trading. If you consider that market investors are making bets, it's already gambling with the definition of "bet" itself. Speculators on the market that try to predict where the value will go are gambling.

Let's say it's about trading, trading daily is gambling, but if you invest in the asset and believe that the price will rise, it can be considered differently. What lacks now is the competitiveness between investors and that's where trading comes in. Still gambling.

[Lorence.xD]

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HArd fact but true , We may think that winning is on ours today but we don't tend to remember that our wins today is the losses we have in the past.
I Know also that we will never win in gambling if we don't know how to invest while in gambling.

Hard fact but true is redundant. You can actually see the results for yourselves in regards to your gambling habits and to see if you really are winning, you can chart your loss, wins and capital every time you gamble and you will eventually see a pattern that is slowly going down. You can just invest and not gamble at all, I mean you will get more profit out of your investment if the money that you plan to gamble was put on investment.

[Zilon]

Although both might possess some level of similarity but in the real sence sports gambling is purely a bet without any analysed technique. In sports betting gamblers place bets on the ground that a particular team would either score against the other or it ends up in a draw game

For market investment we tend to look at different market strategies before making an investment. In oil trading different factors decide the trend of the market, weither it would be in a bullish or bearish trend

In conclusion sports betting and gambling generally is completely different from market speculation which we call trading in general

[peter0425]

So we are never winning because we still carried the losses from the past unless we can hit the jackpot, which I do not think will be easy to do. Many people are trying to playing gambling with money, but that only gives your money without winning.

Hitting a jackpot comes only One in a Billion chance mate meaning this cannot be for many times.

Meaning totality is we are loser and the banker will always Win.

But if in the investment, you will see the profit come to you in the future, although the price now is down, the chance for the price to increase will still be bigger. So you can choose what you want to do

Well it is not constantly gaining because In the former YoloDice in which i followed to investors , the first one lost while the other one gains because of the Huge increase in Bitcoin but if not?sure he will lose as well.

[Kittygalore]

I recently read that there is a similarity between sports gambling and market investment like trading. If you consider that market investors are making bets, it's already gambling with the definition of "bet" itself. Speculators on the market that try to predict where the value will go are gambling.

There is an article by Investopedia that overviews investment versus gambling and I have to say that the only similarity that they listed that I agree with is that both involves some risks but that too can differ if there is an in-depth analysis done because investing doesn't necessarily take away your money even if the company is going under or performing bad while in gambling, once you lose then that's about it, you lose the money.

[suzanne5223]

Although both might possess some level of similarity but in the real sence sports gambling is purely a bet without any analysed technique.

Both posse some similarity as you said but sports betting is never a gambling without any analysis techniques and betting in sports game without any analysis is betting to loose.
While betting on the market price is just like an option trading and can be dangerous.

[Saint-loup]

~snip

An interesting question was posed by the author here.

Question: "Market investors and hedge funds bet the price of an asset will increase or decrease by buying or shorting stocks. Gamblers bet one sports team will defeat another by placing bets. Is there a real difference between these two things. Should one be illegalized while the other is not."

I suspect some who have tried their hand at both gambling and crypto exchange trading might identify with these remarks. High risk correlated with high reward ventures such as sports gambling and market investment might both qualify as gambling. There may be many cultural and societal similarities between equity traders and sports gamblers as well. With big data and algorithm based approaches being the most successful innovations of recent times, in both areas.

I don't think big data and algorithm based approach is the most successful in sport betting. Do you have any figures to back this up by chance? In sport betting we aren't betting on markets driven by supply and demand. We are betting on humans, alone or in teams, that's a big difference because players themselves don't know how they will be and how they will play during the event. They don't know themselves how many chances they have to win or to lose their match. So bettors have to know them better than themselves at the end.

[bitbollo]

there is always a risk involved this is why both market have some similarities. but it's very risky compare a bet to an investment.
a bet is like an option. there is a specific timeframe after it a bet will be worthless.
an investment (like buying art or commodities) could always be sold, and there isn't this "limit" for sell in a specific time frame.
for sure everything can be see as a "gamble" if you're taking a risk, but it doesn't means this should be limited or linked to sportbets.

[KTChampions]

Despite some similarities, these activities are radically different. Gambling is just a game of luck. Hedge funds don't play with luck - they buy and sell liquidity, arbitrage interest rates and risks, etc. This is an ordinary business that has nothing to do with gambling.
By the way, a traditional businessman like a baker of buns can also suffer from random events, but we are not saying that his activities are similar to gambling.

[BTCLiz]

Despite some similarities, these activities are radically different. Gambling is just a game of luck. Hedge funds don't play with luck - they buy and sell liquidity, arbitrage interest rates and risks, etc. This is an ordinary business that has nothing to do with gambling.
By the way, a traditional businessman like a baker of buns can also suffer from random events, but we are not saying that his activities are similar to gambling.

Thinking that hedge funds don't play with luck is naive in my opinion. 2008 has shown the world how the big finance companies are gambling with money and take extraordinary risks in order to gain profits. The difference between hedge funds and gamblers are just, that the first are able to manipulate markets because of their market power.

[Fortify]

I think "market investment" is too broad a term when you mention quite different types of topics. As written within the article you posted, forward contracts are very often used with a specific purpose - such as airlines trying to predict their future costs during a set period of time. They might end up paying a little bit extra for fuel, in return for a trader (who has hopefully done their homework) taking the risk that they can predict the price of a commodity such as aviation fuel. That is vastly different from a novice trader taking a punt on the latest cryptocurrency that they may have stumbled across through their facebook feed. It may ultimately come down to levels of education and professional accountability as well. A professional trader who has analyzed decades of history, is accountable to a standards body and may face criminal sanctions for large errors has a lot more motivation to work sensibly than a bedroom trader trying to boost their own funds without fully understanding what might raise or lower prices.