Investment Become Gambling

[GIF-JOBS]

financial investments are very difficult to keep up with and it gets more difficult without emotional control. A lot of people move from making an investment and after a while it becomes gambling because they lack discipline and consistency. investments has rules to follow to make sure that you are on the safe side but when you try to take the fact route to make quick money that's gambling

That’s why is best to know how to differentiate gambling, investment and trading from each other. Because if you can differentiate them you will be able to position yourself, if you are an investor focus on longterm because you aren’t trader or gambling , and if you want to trade make sure you learn properly so that you won’t address trading as gambling. This kind be off topic but just felt like dropping it .

This is true, there's a way you would learn trading it will look like you're gambling as you will be relying on luck. But those who have build enough knowledge about trading don't usually depend on luck but strategy, trading is very far from gambling depending on your level of knowledge towards trading. Since I know that trading is not an easy game I don't look into it, and secondly it requires enough knowledge. So instead of spending a whole lot of years in trading to learn how trading works I would rather use the time to learn the basic things about bitcoin investment and just get started.

When we trade abnormally compared to normal, it will become like gambling for us, if trading correctly it is never gambling, but currently many people are using trading in such a way that it becomes completely equivalent to gambling. So it will depend on how you manage the matter, and how you accept it, if you accept it realistically through research then it will bring you real possibilities, otherwise when the matter is managed completely depending on luck then it is gambling.

Those who really understand, they rely on discipline and strategy, not luck, but at the end of the day, trading is never easy, it requires years of learning. Even after learning, many skilled traders face losses. So losses are completely normal here. Losses can never be avoided. So we need to change our thinking so that we can avoid making wrong decisions.

[Crypto_Timothy]

Year 2023. I started investing in Bitcoin. The market has fluctuated many times until now. However, I have always had a long-term goal. Although I had to sell once due to circumstances, but I started investing again.

However, a few weeks after my investment, a close friend of mine also started investing. He also talked about long-term investment. Our goals were similar. However, even though the goals were the same, our behavior was not the same over time, and this is where the difference between investment and gambling was created.

He start take profits when price increased. After doing this a few times, he started monitoring the market regularly and analyzing the opinions of YouTube and Telegram. At one point, he started making decisions with the market fluctuations. Sometimes he would buy out of FOMO and sometimes he would sell out of panic. In this way, he would make profits at times and sometimes he would lose.

 Even when I warned him about such behavior, he  misunderstand me that maybe I did not want to let him make a profit.
However, at one point, after significant financial loss, he realized his mistake. The problem was in his behavior.  He had the ability to continue investing well in the long term and even though he started investing with this intention, due to his inability to control his behavior, the investment turned into a gamble.  

Do you think that mental and behavioral control are similar important with financial management, risk management  in investing?

✨

In life generally, if you want to succeed you must be in control mentally, like from the story you shared both of you had same goal but due to certain behavioral pattens that we see common with people who truly dont understand bitcoin as an investment rather than a quick money scheme, people like that often lack control and are always prone to making mistakes.

Having a goal is one thing, understanding what needs to be done in order to achieve that goal is completely something else and that was the clear difference between you both.

[Pi-network314159]

this shows that everybody is accountable for the decision they make. i see that your friend never had an intention of holding bitcoin for the long term like you, he only played along to make you believe both of you are in the same shoes perhaps he want to play smart. but however since it is his life to leave and decision to make then you have not option than to wish him well in the path he chose. which is from investing to gambling. i usually say that investment  is not for everybody. and not matter how hard you try to advice people , they will surely have something to say all the time just to defend themselves to do what pleases them.

[Inior]

this shows that everybody is accountable for the decision they make. i see that your friend never had an intention of holding bitcoin for the long term like you, he only played along to make you believe both of you are in the same shoes perhaps he want to play smart. but however since it is his life to leave and decision to make then you have not option than to wish him well in the path he chose. which is from investing to gambling. i usually say that investment  is not for everybody. and not matter how hard you try to advice people , they will surely have something to say all the time just to defend themselves to do what pleases them.

We surely can't force anyone to do what we like with their own money, maybe in scenarios like this what the person needs is experience to understand that you where actually pre-informing him on the dangers of shifting from investing to gambling. I understand that sometimes it hurt more when you see a dear friend investing his time, effort and resources into something you know for sure doesn't really guarantee him a good return and the worse part is, no one is getting any younger, it's either you develop enough common sense in life perhaps from other people experience, from books from your own experience etc or you end up not fulfilling alot of your dreams even when it feels really close to achieving them.

[champions]

this shows that everybody is accountable for the decision they make. i see that your friend never had an intention of holding bitcoin for the long term like you, he only played along to make you believe both of you are in the same shoes perhaps he want to play smart. but however since it is his life to leave and decision to make then you have not option than to wish him well in the path he chose. which is from investing to gambling. i usually say that investment  is not for everybody. and not matter how hard you try to advice people , they will surely have something to say all the time just to defend themselves to do what pleases them.

We surely can't force anyone to do what we like with their own money, maybe in scenarios like this what the person needs is experience to understand that you where actually pre-informing him on the dangers of shifting from investing to gambling. I understand that sometimes it hurt more when you see a dear friend investing his time, effort and resources into something you know for sure doesn't really guarantee him a good return and the worse part is, no one is getting any younger, it's either you develop enough common sense in life perhaps from other people experience, from books from your own experience etc or you end up not fulfilling alot of your dreams even when it feels really close to achieving them.

How a person spends his money is his personal matter, but if someone very close to us invests money wrongly in front of us, then I think it is our responsibility from a human perspective to warn them that they are investing money in the wrong way, which can increase the possibility of losing their all money in the future. If they understand their mistake well, then it is very good, by doing so they will be saved from big losses, and if they do not understand, then it is their own failure, not someone else's.

[Plutomanian]

This is not the time to pour accusing fingers or blames on anybody because the market alone is risky and not everyone is making it out alive when it comes to the severe losses in the market. We can have proper knowledge about the market but when it comes to one not knowing to what to is total frustration. Investment can not be gambling because its never a guessing work but an investment put together with the strengthening combination of analysis just for the Investment to become a success.

Gambling is never part of the plan and I've watched it lure so many people into crucial debts and depression. Acknowledge that not everyone can redeem him or herself when gambling setback comes in the picture. But only the strong will survives because they hav3 a way of making things happen despite all the pressure tendency and ease the atmosphere.

[Princess Leah]

 First off, buying Bitcoin to take profits in a short-term interval or sell due to FOMO is a traders mentality, Bitcoin is a long-term investment like your friend said but he didn’t do it the right way, investing in Bitcoin doesn't require one to always monitor the market or looking for tools to help analyse the market like traders do.

 What you both would've done is to buy and hold then use a good strategy like the DCA to help invest consistently from your discretionary and manage risk. Well, you're in the right place where you can learn to invest in Bitcoin the proper way instead of going to social media platforms where you could be exposed to scammers.

[cocadalcan]

Do you think that mental and behavioral control are similar important with financial management, risk management  in investing?

The key to investing is the ability to be patient. It depends on mental skills. The desire to get rich in a short time can make you greedy. This is where the difference between a long-term investor and a short-term trader arises. Skill in risk management can be developed with increasing experience in investing. Mental behavioral changes occur with increasing skill.

[Eclipse01]

What ur friend did was trading, it is not exactly an investment, he is risking his capital to make profit, so the loss he faced is part of the process, now from your question, if someone wants to invest in Bitcoin, you should understand what it means, and mental fortitude is also very important in the sense that, u should know the market is not linear but progressive, and so if you come across a comple of bumps, no need to panic.

Overall I can't say your friend learnt his lesson no that would be wrong. He simply went through experience and that experience gave him knowledge. It's up to him to make use of it. So yeah it was his decision anyways and the best thing about the market is that it tends to favour those who are patient with their investment... that's just it...

I love this part, he simply went through the process and gained knowledge, that's so spot on

[Jamestown70]

Here you both lack knowledge. In your friend's case, he may have had a long-term plan but did not have a prudent source of income to take action according to the plan or he did not have any source of income at all.

You had to sell the investment first due to lack of good financial management and risk management. Perhaps you did not have a backup fund with which you could get through an emergency.

Your friend may have been suffering from a lack of sufficient money because he needed to make money quickly from Bitcoin to cover expenses or he considered Bitcoin as a source of income. He must have lacked knowledge and patience because he took long-term measures but used Bitcoin as a quick money making scheme due to lack of patience and knowledge. Both suffered from a lack of sufficient knowledge! If he did not lack money, then he was an impatient and greedy fool. .

I understand that they both lack knowledge and patience to stick to their previous goals and thinking gambling their Bitcoin will pay off, but then, are you saying they need to acquire more than the basic knowledge of buying and selling before starting Bitcoin accumulation?. If that’s the case, what other aspect of Bitcoin knowledge would you recommend they need to acquire before starting Bitcoin investment. I know it’s the result of their lack of knowledge to grow their back up fund while investing that made them run back to their Bitcoin portfolio in times of emergency, but they can still equip themselves with Bitcoin knowledge while investing, except there was no intentionality to invest on a long term from the onset.