The fine line between market investment and sports gambling

[ReiMomo]

Investing for me is almost the same as gambling, in short, investing is a sort of gambling but the more worst is gambling when it comes to risk and it is based on luck, so whatever strategy you will apply, most likely you end up keep losing the more time you will spend on it.

Let us not complicate those things, both of them are very risky and I agree above, they are the same coin but different faces, coin mean they are risky but have a different styles on how to risk.

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[Silberman]

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

That is pretty much how it works, people are always worrying about how much money they win or lose in a single session not understanding that gambling just like investing is just one big session that lasts for a lifetime, so it doesn't matter if you have one good day if during the whole history in which you have been gambling or investing you are losing money, this can be difficult to understand but once you do you can easily realize the difference between investing in gambling.

[xSkylarx]

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.

Their difference for me is in crypto exchange trading there is what they call risk management. You just bet 5% or less of your portfolio to avoid being liquidated. You can even set your stop-loss and adjust the leversge to avoid bigger loss. Market trend and reading the chart can help you a lot to plan your trade.  While in sportsbetting, it depends on the odd and your bet on how much you are going to win. It would be difficult to recover if you hit 2 or more losses.

[qwertyup23]

Thats complicated...many peoples think that investment and gambling are the same and i think the idea is not totally right...in the wining situation for example when you make a bet at 2 ods your asset will be doubled once the bet get settled but  investment can have some other situations...in the losing case bettors will dont have any chance to recover their money but investors maybe will recover and make huge profits by holding their investment

Investment and gambling are two worlds separated by a fine line of skill.

Investment deals with the speculation of a stock/cryptocurrency in which its price may increase in the near future. On the other hand, gambling generally involves more of a short-term situation where you bet your resources hoping that the odds may be in your favour. While luck may seem to be involved in both, the technical analysis is more present in investing.

[uneng]

Gambling and marketing investment are two sides of the same coin, With Gambling, you're gambling for your present, with investment, you're risking your future. Then again, one thing that also defines them is how they are generally seen by the people. Market Investment is seen by many as a way to earn money, whilst gambling, though some may argue as well, is generally seen as a form of entertainment. Both offer hefty profits at the risk of something lost, Gambling could cause devastating losses depending on the person, same goes with Market Investment, although it doesn't happen that much.

Market investment is seen as a way to earn money because the risks are much lower than gambling. On long run market investments are pretty safe, while gambling is quite the opposite. Both have risks, I agree, but the risk isn't proportional. There are many people who improved their life's standards through market investments, while there are very few who achieved the same through gambling. What should be clear is that one is for business purposes, while the another is for entertainment purposes. At least for most people.

[Wexnident]

Investment and gambling are two worlds separated by a fine line of skill.

Investment deals with the speculation of a stock/cryptocurrency in which its price may increase in the near future. On the other hand, gambling generally involves more of a short-term situation where you bet your resources hoping that the odds may be in your favour. While luck may seem to be involved in both, the technical analysis is more present in investing.

I'd correct that with how investment and gambling is separated by skill and luck. The former is used in investments, and the latter is used in gambling. Though in the case of sports gambling, it's actually isn't that reliant on luck. If you were to consider how research on investments and research on sports gambling work, they'd be two peas of the same pod imo. Though they may be called different terms (TA for investments, idrk what its called in sports gambling), I suppose you could say both of them require you to actually analyze and study data (granted that you study two different types). The only time it is separated by luck is in terms of casino gambling games I suppose?

It's like the choice of being able to choose where you would place yourself in investing and sports gambling (by researching) when gambling is randomly being placed somewhere in a plot of winners/losers.

[shoreno]

Thats complicated...many peoples think that investment and gambling are the same and i think the idea is not totally right...in the wining situation for example when you make a bet at 2 ods your asset will be doubled once the bet get settled but  investment can have some other situations...

use the game crash as an example for both because your profits can go higher but its up to you what rate will you cash out before the game crashes .

in the losing case bettors will dont have any chance to recover their money but investors maybe will recover and make huge profits by holding their investment

if your betting with martingale , you think your gonna loose because of many reds but theres a posibility that you can hit your target in few rolls. thats what makes them think that gambling and investing are the same

[traderethereum]

Investing in futures contracts and gambling have common characteristics and for this they can bring us profit or loss, Because they both rely heavily on betting!!

Do you mean trading in futures? If you do not use analysis before you trade in futures, it can be gambling because you predict if the trend will go down or up.
But if you use analysis to trade and know where the trend will go, I think that is not gambling.
But I think trading and gambling have a thin line between the two, and the differences are about the skills.
Maybe there will be a debate about this because trading without skills is related to gambling. After all, we only guess where the trend will move.

You are right,
In fact, investing in trading depends on employing a set of skills that help us close trades without incurring losses. The same thing happens when we bet on sports matches, if we don't have a strategy to work on, we face a big loss!

Maybe trading and sports betting similar to each other because we need to have knowledge about that so we can know when to make a profit.
But most people who trade do not have knowledge but they depend on the other people suggestion or use the signal from some groups. And that happens too with people who bet on sports betting.
And both trading and sports betting use history of making analysis and decision later.

[jrrsparkles]

When the intention of doing sports betting is to make more then both hedging funds and sportbook are similar in nature and moreover yes its just a pure gambling. But we are living in a society consider one as sin and other one as smartest move from a person.

[molsewid]

Investing for me is almost the same as gambling, in short, investing is a sort of gambling but the more worst is gambling when it comes to risk and it is based on luck, so whatever strategy you will apply, most likely you end up keep losing the more time you will spend on it.

Let us not complicate those things, both of them are very risky and I agree above, they are the same coin but different faces, coin mean they are risky but have a different styles on how to risk.

I will agree with you mate, in fact investment was also called as gambling but you're not literally applying gambling here but the mere fact that you are taking risks, putting a capital or money in something or products that you didn't sure to what might be the end game of your investment. However, in area of cryptocurrency both gambling and investment goes in the same thing. What i mean is you can gamble and invest at the same time and at the same crypto you trusted to invest and gamble to win with however can't deny that the level of risk were undeniable.

[acquafredda]

The average poster here does not even know what an investment as, how can it be confused with gambling? I am getting mad because of the priciple here, I cannot stand reading these bullshits.
Investing is a serious thing that has ancient roots: the history of investing can be traced back to the famous Code of Hammurabi, written around 1700 BCE: the law established a way to pledge collateral in exchange for investing in a project. In the Code of Hammurabi, land was required to be pledged as collateral.
Our modern investments are still based on those very rules. Please study some history.
https://bebusinessed.com/history/history-of-investing/

[Smartvirus]

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."

From the point I'm viewing this right now, there is pretty much no difference between them both. Its a game that is centered about taking one of either sides in a 2 option probability and yes. Thats what bets are about, a probability for which one is bounded to occur and being a winner depends on either side you take.

Mean while, I'm very okay with them both being completely legal as it is something done out of freewill and isn't some kind of forced participation. Making either one illegal would only bring some illegality to the practice and it too becomes a hindrance to the demonstration of a person's expertise in an exercise.

[fortebettor]

In the broad sense of the word, both are gambling. There's not much difference between the two. It's just that there are various interpretations of the word, various contexts on which gambling could be construed differently.

Gambling could refer to placing bets on a game of chance or on a sports team as much as it could refer to taking a risk making a bid order in a stock market or on a crypto exchange platform. However, most of the time gambling in the sense of the former is more on merely having fun and taking blind chances while the latter is oftentimes understood as a serious undertaking which involves a lot of informed analysis.

At the end of the day, I don't think one should be made illegal while the other legal. But both should be highly regulated.

It is all one big absurdity.  The more things regulated the better for the authorities and the worse for the rest. That is what it is all about: uncertainty and doubt. It is not the free market that decides, but someone behind a desk

[Matic]

gambling is also sport right you spend a lot of calories

[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.

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.

This difference does not seem to you fundamental?
2008 is not an argument in favor of that hedge funds play with luck - there are winners and losers in the market. Progress kills some of the industry and they withdraw from the market. This is normal. Yes, and you can look for the general position of hedge funds at a distance - most of them feel great while most gamblers go bankrupt at a distance.

[Rengga Jati]

Between gambling and investing, it may be somewhat the same. But fundamentally different. We're talking about putting money into something. When investing, we put money in a certain period of time, based on analysis and also certain investment market conditions. So, a good investment is investing in things that are truly trusted, have value, and of course based on in-depth research. And the result, when we decide to sell it at a certain rate, of course, this is the rate we want after getting profit.
Whereas in gambling, we are like betting our money every time they play or we play. At that time, we might lose and maybe win as well. But if we or our bets lose, our money will immediately disappear at that time. We can't hold on for the next match.

What may be more the same as gambling is trading without research, only relying on luck and also in high risk only or following the hype only.

[Darker45]

In the broad sense of the word, both are gambling. There's not much difference between the two. It's just that there are various interpretations of the word, various contexts on which gambling could be construed differently.

Gambling could refer to placing bets on a game of chance or on a sports team as much as it could refer to taking a risk making a bid order in a stock market or on a crypto exchange platform. However, most of the time gambling in the sense of the former is more on merely having fun and taking blind chances while the latter is oftentimes understood as a serious undertaking which involves a lot of informed analysis.

At the end of the day, I don't think one should be made illegal while the other legal. But both should be highly regulated.

It is all one big absurdity.  The more things regulated the better for the authorities and the worse for the rest. That is what it is all about: uncertainty and doubt. It is not the free market that decides, but someone behind a desk

Regulation, to a certain extent, is necessary. Imagine a completely regulation-free environment. That is one bigger absurdity. You wouldn't want it for sure.

Of course, regulation has to be moderated, kept within reasonable bounds, feedback-driven, and so forth. But when it comes to uncertainty and doubt, those are severe in a market which has no regulation whatsoever.

Freedom is sweet. But try absolute freedom. It kills.

[fortebettor]

In the broad sense of the word, both are gambling. There's not much difference between the two. It's just that there are various interpretations of the word, various contexts on which gambling could be construed differently.

Gambling could refer to placing bets on a game of chance or on a sports team as much as it could refer to taking a risk making a bid order in a stock market or on a crypto exchange platform. However, most of the time gambling in the sense of the former is more on merely having fun and taking blind chances while the latter is oftentimes understood as a serious undertaking which involves a lot of informed analysis.

At the end of the day, I don't think one should be made illegal while the other legal. But both should be highly regulated.

It is all one big absurdity.  The more things regulated the better for the authorities and the worse for the rest. That is what it is all about: uncertainty and doubt. It is not the free market that decides, but someone behind a desk

Regulation, to a certain extent, is necessary. Imagine a completely regulation-free environment. That is one bigger absurdity. You wouldn't want it for sure.

Of course, regulation has to be moderated, kept within reasonable bounds, feedback-driven, and so forth. But when it comes to uncertainty and doubt, those are severe in a market which has no regulation whatsoever.

Freedom is sweet. But try absolute freedom. It kills.

What is the definition of absolute freedom according to you? Everything is possible but not everything is beneficial. Everyone has a conscience and the right attitude to be good. When you are born you know immediately what is good and what is not unless someone distorts this image. You don't need any regulations for that. It is one thing to punish evil and another to regulate it.

[Becky666]

When the intention of doing sports betting is to make more then both hedging funds and sportbook are similar in nature and moreover yes its just a pure gambling. But we are living in a society consider one as sin and other one as smartest move from a person.

This types are those who are addicted to gambling and investment; these two are same when you motives are to hit and run from them but will later become the victim in the making. When you have dubious mindset towards the investment and gambling believe me you will definitely become their victim, example: invest just 100$ to get $10,000k or there are sure odds for pick that will cost just $100 but at the end went down the drain.

[Silberman]

Thats complicated...many peoples think that investment and gambling are the same and i think the idea is not totally right...in the wining situation for example when you make a bet at 2 ods your asset will be doubled once the bet get settled but  investment can have some other situations...in the losing case bettors will dont have any chance to recover their money but investors maybe will recover and make huge profits by holding their investment

Investment and gambling are two worlds separated by a fine line of skill.

Investment deals with the speculation of a stock/cryptocurrency in which its price may increase in the near future. On the other hand, gambling generally involves more of a short-term situation where you bet your resources hoping that the odds may be in your favour. While luck may seem to be involved in both, the technical analysis is more present in investing.

It seems to me that you are confusing investment with trading, traders are the ones that speculate with the price of an asset on the short term, investors do not really speculate, they look at the fundamentals of an asset and then they try to project to the future whether or not that asset is going to be more valuable in the future and if they think that is the case then they put their money in that asset, this is precisely what is happening now with institutional investors coming to bitcoin at the moment