Are new generation of investors more into gambling?

[bittraffic]

Isn't stock investment making you part owner of the company?

While playing in the options trading is gambling with the big companies as they are both on the same side betting on the players speculating where the market price goes. It's a rigged game in which they are the house that wins all the time. There was even a report about trading platforms selling thier order flow data which they make more money out of it than providing trading services.

Yes that's why I said "almost". However, the company can always go bankrupt and your share's value can go to zero or lower than what you bought. You buy a stock because you want it to go higher against the dollar. When you do options, the same logic applies. What you want is always more USD.

You just have to be on the right side of the trade to make them work.

And no, stocks don't always go up. Paypal was $300 6 months ago, now it is trading at $188. You may own the stock, but if you bought at $300, right now you are holding a negative position. It may never recover and make a new ATH. Nobody can guarantee it. Was it gambling just because you bought at $300? No it was just a bad investment.

What I meant is that if the investor is just on the spot market, he wouldn't lose all his funds after the price goes in the opposite direction. On the spot, even when the price hit its bottom, his investment can still be withdrawn although he loses a percentage of it. He didn't lose it all. Buying $300 means you lose all of it in the options trading executing in the hourly chart but he'll not lose it all in the spot market. 

Well, I think the term "gambling" is wrong to describe the activity? Instead of calling it gambling, it should be a much riskier option compared to spot trading no? Well granted any type of investment that one just willy nilly enters is gambling in itself, but if it isn't, then comparing the two, options are simply riskier and that's about it. 

Around 39 million options contracts have changed hands on an average day this year, up 35% from last year and the highest level ever, according to Options Clearing Corp. data as of the end of November.
Regulators worry is that companies like Robinhood and Ameritrade easily approve users to gain access to options which makes the surge of these new gamblers. Retail investors are also enticed to join this frenzy because leverage is quite high while zero transaction fees.

Honestly, I don't even see the issue here, pretty sure that they know what they're getting into, whether it be spot, options, futures or whatever, investing means accepting the fact that you can lose whatever you invested in. Trading is a zero-sum game, people win, people lose.

The issue is that options trading is rigged because the platforms are just betting against these gamblers and they are on both sides of the game.

[Mpamaegbu]

As if the US regulators truly care what people do with their finances apart from getting taxes from them. Again, while I don't like gambling I still don't think it's enough to force people into investment patterns they don't like. Advising this upward thinking generation to go into stocks as against the fast paced crypto industry for quick ROI will be like dragging people decades back from civilization. Is that what these regulators want, all in the guise of suppressing crypto trades? Whether Options or spot, crypto trading is already a very risky business. By the way, is there any business that isn't prone to risk? Regulators should allow traders choose their risk by themselves. Even stocks aren't safe Haven.

[South Park]

Should we say that even trading normal markets such as spot is part of gambling?
Because obviously one has to "bet" a given amount of funds with hope that the price or value of the item he bought or invested in will grow?
Robinhood is one of the worst exchanges a sober crypto trader can use

It depends, if you are actually using a trading strategy you have backtested and you are following it no matter what then that is not gambling and you are really a trader, but if you are following your instincts, gut feeling, a strategy you do not really understand or the advice of someone else then you are gambling, now I do not think there is anything wrong with gambling as long as you do so at the right place like a casino, but gambling in the markets is just wrong and it will be impossible for you to get any profits if you keep that behavior.

[dunfida]

Should we say that even trading normal markets such as spot is part of gambling?
Because obviously one has to "bet" a given amount of funds with hope that the price or value of the item he bought or invested in will grow?
Robinhood is one of the worst exchanges a sober crypto trader can use

It depends, if you are actually using a trading strategy you have backtested and you are following it no matter what then that is not gambling and you are really a trader, but if you are following your instincts, gut feeling, a strategy you do not really understand or the advice of someone else then you are gambling, now I do not think there is anything wrong with gambling as long as you do so at the right place like a casino, but gambling in the markets is just wrong and it will be impossible for you to get any profits if you keep that behavior.

You could actually see it for yourself whether its a gambling or totally a strategic based type of thing and you would really be able to realize when you do have the real experience and those key points you had mentioned
which are actually on point and precise.

Gambling in trading is on the sense on which you do apply guts and instincts on making up trading decisions rather than on going with technical and fundamentals which you should really depend on but there are
circumstances which you cant really able to avoid up.

Deal it according on what means and as long  you do sustain then that what matter the most.

[arbifahrozy]

Yes no dout in this mostly new investor are doing gamling they won't have any experience and also try to become a successful trader in short time which is not possible that's why they do future trade and many more mistake

[Peanutswar]

Some of them are already knowledgeable about the internet and of course, they are young they have their full confidence to make a risk than others, and gambling is more ideal to deal with than trading because it does not require a lot of technicalities and understanding how it works. In gambling just wage your assets and wait for your luck and strategy to win the game its ideal for me to play safe with the card games and sports/e-sports game than risking my funds into a slot game but it has higher rewards.

[davis196]

Why options trading is considered gambling,while penny stock trading isn't considered gambling by the article author?
There will always be traders,who prefer a high risk/reward ratio.Nobody can stop them from trading.
If options trading gets banned in certain jurisdictions,those traders will find an alternative.
Perhaps the platforms like RobinHood can implement some kind of internal limits,when it comes to options trading.AFAIK,Binary options are banned in the USA,but I might be wrong about this.
By the way,I wouldn't call those investors "a new generation".
They were always here,we just couldn't see them.

[bittraffic]

Why options trading is considered gambling,while penny stock trading isn't considered gambling by the article author?
There will always be traders,who prefer a high risk/reward ratio.Nobody can stop them from trading.
If options trading gets banned in certain jurisdictions,those traders will find an alternative.
Perhaps the platforms like RobinHood can implement some kind of internal limits,when it comes to options trading.AFAIK,Binary options are banned in the USA,but I might be wrong about this.
By the way,I wouldn't call those investors "a new generation".
They were always here,we just couldn't see them.

You can not lose everything when you invest in penny stocks. The prices may just depreciate to its very low price but there is still something to get when you sell your stocks unlike when you do it on binary options. And it's the same thing with futures when the trend goes the other way.

But you are right nobody can stop them from trading even if the government will try to stop them but these platforms have the least responsibility to look thru those traders just as how they have reasons ask KYC. Not just approve them instantly.

[Hobo66]

I think that a large number of people just want to make an investment in the gaming industry. This type of cryptocurrency gaming industry has dual functionalities as people can enjoy in the gaming industry as well as it can be a way of earning money. So in this period of time, people often use the gaming industry to make investments. The gaming industry is increasing day by day as numerous users are interested in this type of marketplace.

[palle11]

Should we say that even trading normal markets such as spot is part of gambling?
Because obviously one has to "bet" a given amount of funds with hope that the price or value of the item he bought or invested in will grow?
Robinhood is one of the worst exchanges a sober crypto trader can use

Lol not so regarded as gambling. Trading is a little guided at least you can trigger your stop loss automatically. Moreover, with trading you have technical and fundamentals to analyse that will help you on the decision you want to make. They come like chart and news but gambling don't have this but usually based on instinct. Also I don't know if trade is manipulated but gambling is.

[Luzin]

They come like chart and news but gambling don't have this but usually based on instinct. Also I don't know if trade is manipulated but gambling is.

It may be considered gambling by writers because they are just guessing, buying without knowing the analysis. I think if an investor just becomes a gambler he will just run out of capital. If the investor just guessed and succeeded I think it was just luck it would only be one or two times. Then they will lose big.
I don't think a smart investor will be like that, he will think about risk and profit in detail. If the investor without analysis is not an investor but possibly a gambler.

[eaLiTy]

I have come across a different breed of investors who are scouting for potential new projects, negotiate a good deal for the seed investment and then if there is a delay in the progress then they would attack the team and would ask to release their tokens even though there is a vesting period for the tokens for these seed investors and i have seen projects sinking because the team released the vested tokens due to the pressure and those seed investors making a fortune.

[milewilda]

I have come across a different breed of investors who are scouting for potential new projects, negotiate a good deal for the seed investment and then if there is a delay in the progress then they would attack the team and would ask to release their tokens even though there is a vesting period for the tokens for these seed investors and i have seen projects sinking because the team released the vested tokens due to the pressure and those seed investors making a fortune.

Why would have delay on the first place? If there are specific dates on when those tokens would be finalized or released then it is just right for the team to make out on what they had promised.
There would be no rush up on things or blames if everything would really be in order or had been followed on what  the project had been told but expect or anticipate that there would be
possible delays due to developments cant really be rushed up sometimes.It is just investors are really that impatient and does really like that everything
should be followed but well i cant really blame them off.

[Smartvirus]

Should we look at it that way, we might be a little bit biased because, though the youths might be heavily involved in gambling, the aged persons or fully grown adult are heavy stakers. They are capable of making a stake that could cover the stakes of over a 100 youths. Just like that, the investors grow wild in there search for investment opportunities in varying projects. Gambling provides people with a reason to be hopeful of some huge earnings over some few $ stakes. Hence, it became a thing for most persons that needed to be hopeful while those with lots of cash just see it for a game.

[AakZaki]

if novice investors have no knowledge of how to trade, it will certainly lead to gambling a bit because they don't know what they are doing and are just guessing. However, this also applies to the Futures or Binary Options market, which only uses guesswork.
Old investors certainly don't do stupid things like that, it takes a long research to start believing in the coins or assets they trade.

[AmoreJaz]

if novice investors have no knowledge of how to trade, it will certainly lead to gambling a bit because they don't know what they are doing and are just guessing. However, this also applies to the Futures or Binary Options market, which only uses guesswork.
Old investors certainly don't do stupid things like that, it takes a long research to start believing in the coins or assets they trade.

this is why you can call investing more into gambling side if you are jumping on this market blindly. you should have prior knowledge before buying any of these alts. because if not, you are indeed gambling your funds. though the risk is still there if you do your own research and study, but at least, you can prevent small or big losses if you are well-versed on a particular project. it will give you better understanding of its market if you will spend time studying them and you may save yourself from further losses if you are keeping up to date with the progress of the project.

[Rengga Jati]

I personally can't say whether it's true or not, because it certainly depends on each individual.
However, if you look at some of the people around me, as far as I know it is true that they are more into gambling in crypto than trading.
This is due to several factors that I see:
- They ask about how to get profits fast in trading
-After explaining at length, whether they understand or not, it turns out that they are only following promotions from channels that they think are very promising or well-known public figures
- They focus more on hype new coins, such as meme coins, NFT, Gaming coins and some coins from new projects that have massive promotions.
- They are more interested in pump and dump actions that take advantage of coins prices which are likely to go up high in the near future
- But unfortunately they often lose, because they just go in to buy the coin when the price has soared, which in the end most of their money is lost because the coins they have are no longer valuable.

However, this does not generalize everything, there are some people who are also serious about learning from scratch and becoming traders.

[sheenshane]

However, this does not generalize everything, there are some people who are also serious about learning from scratch and becoming traders.

This is true, I have a few friends the same at a young age as me who had open-minded when it comes to crypto investment.  They know what pump and dump crypto and also the hyped coins, especially meme coins.  Not all of them prefer to gamble their money, they even know that Bitcoin is the best investment among altcoins.

Investors who want to gamble might be the reasons are;

• Want a quick profit
• Don't have an idea of what they invested, as long as they heard profit
• Under influenced by the popular influencer
• Being hyped

[carlfebz2]

if novice investors have no knowledge of how to trade, it will certainly lead to gambling a bit because they don't know what they are doing and are just guessing. However, this also applies to the Futures or Binary Options market, which only uses guesswork.
Old investors certainly don't do stupid things like that, it takes a long research to start believing in the coins or assets they trade.

this is why you can call investing more into gambling side if you are jumping on this market blindly. you should have prior knowledge before buying any of these alts. because if not, you are indeed gambling your funds. though the risk is still there if you do your own research and study, but at least, you can prevent small or big losses if you are well-versed on a particular project. it will give you better understanding of its market if you will spend time studying them and you may save yourself from further losses if you are keeping up to date with the progress of the project.

You would really be a gambler like if you dont know on what you are doing which is of course you would need to have some research on a particular project before tending to make out some investment or deposit.

This isnt something that you do only put without minding or without having analysis as for those new generations on where they could make out searches and have access and knowledgeable about tech

and something we do have in todays era then it would really be simple on conducting out some research which would really be helpful for your investment decisions.

[adaseb]

Yes it’s more of less gambling. If you were ever reading any of the WSB you can clearly see that these people have no idea what they are doing.

They basically YOLO all their money on some options contract that expires in less than a week. And sometimes they get lucky and turn $3K into like $30K and do it over and over until they go bust.

Kind of like crypto traders go 100x leverage trading Bitcoin.