It does seem as if investing and gambling are on a spectrum in terms of there are ways to engage in behaviors that are more towards one end of the spectrum or the other end of the spectrum, but they are likely not completely pure concepts in terms of being separable from one another as sometimes folks like to talk in terms of black and white absolutes.
Trading does seem to have a lot of aspects that are closer to gambling rather than to investing, even though there are ways that trading can be employed to hedge risk, so in that regard be incorporated as part of an overall investing strategy. and likely if any of us are wanting to consider trading as investing we would likely need to attempt to trade in bigger and wider gaps to offset risks or to serve as insurance rather than considering trading in terms of shorter term profit making. but I suppose there are some folks who can become really good at trading in such a way that they feel that they are not really taking very many risks because they are striving to set up their orders in such a way to take both sides, so they are merely hedging their bets which could end up fitting more within a kind of investing perspective rather than a gambling perspective.
I would also speculate that the more informed that you are regarding various factors, then it is likely that you are more able to set your bets in accordance with the probability of one outcome versus another outcome, so in that sense there would likely be less risk-taking involved. and it would fit less on the spectrum of gambling, even though some folks will still want to characterize such perspective and practices as gambling.
To me it seems difficult to even put certain types of investments on a spectrum of gambling, but i also get where y’all are coming from. Let’s say you’re buying something like gold or silver, you’re getting exactly the amount you paid for and your investment can’t vanish even if market prices fluctuate(the gold will always stay in your hands). Not really a gamble.
Maybe the gambling factor comes into play when the underlying asset is ignored by the investor and the only focus is the market price and higher returns, like waiting for something to go parabolic without understanding/ being interested about what you were investing into/ or wanting to actually own the asset, if it wasn’t for money.
Now if someone is risking their asset they didn’t previously gamble on, like the people that got their Bitcoin liquidated now, because they were over-leveraged, then we’re getting into high gambling territory. This has nothing to do with sane investing anymore.
But if i actually wanna own a part of x company trough good and bad times, because i believe they deliver a great value, i dont see how it’s gambling(then owning a company would be gambling too), its simply providing liquidity to where actual value is created. It’s more like keep tuning a car till it can win a race and beyond.
To me this was the original thought behind doing investments, tho i agree that this is getting more and more lost, but people who invest with strong principles will succeed more.
Now sure if i go into 100 companies in 5 days, it’s nothing else than gambling, because no one can possibly gather enough info about the underlying assets in this short amount of time.
Now if we go into the section of investing were no more underlying asset is bought, like derivatives, we’re coming closer into gambling territory.
So i see why the both are on a spectrum.
I suggest the structure of investing and gambling as a spectrum is very useful than treating them as completely separate ways.
At the investing end of the range, options are categories on the expected Long term values and cash flows.
Time sees to be prolonged, ricks is now managed through diversification and patiences.
This makes the investors expecting a unique and positive return over repetitions. Sometimes at the gambling ends one outcome are often dominated by Chance over the time horizon.
This may have statistical edge.
Massive returns are gotten by luck rather by ownership of a productive asset.
At the point the value to be gotten may be negative after the costs.
The expected value may even be negative after costs.
Trading is all about risk management, time , participant behavior.
Therefore a well disciplined investor can buy Bitcoin, hold for years and sell in due time without having fear .
