Basically everything you do is a form of gambling whether you are young or old.
Studying:
You are gambling with your money and time by choosing the correct field to study that will guarantee you a job in the future. Wrong choice means losing your money and time.
Working:
You are gambling with your time and effort by betting that your company will appreciate your work, so that you will be rewarded fairly. Please note that your company will have 101 reasons to retrench you even though you have put in a lot of hard work for many years. If you are retrenched, it means you will lose your time, your pay and your effort. Sometimes it is very hard to find a similar job without a huge pay cut.
Doing business:
If you are doing business, you are gambling with your time and money. If your business failed, you will lose your money and time. If you will wasting more time thinking what to do next.
So is investment a form of gambling?
Yes of course, you are basically gambling with your time and money by betting on the right stocks. Wrong choice of stocks will just make you lose your money and time.
However, in my opinion, investment risk is not more than that of studying, working and doing business. If your stock happen to plunge, all you need to do is to hold your position. But studying in an obsolete field, being retrenched after working for many years, and failure in business will not allow you to hold in your current position.
5 comments:
Better to know their differences
http://createwealth8888.blogspot.com/2009/09/gambling.html
Oh, insurance is also gambling, the special thing is that we want to lose. The insurance open the game for bets, buyers bet that something bad will happen to them but hope to lose because they don't hope anything bad to happen. Thus, insurance business is better than casinos because the players came to lose money :)
Anyway, I would say, everything about money is gambling. Life has nothing to do with money, but money should helps to make life more fruitful. Money for life, not life for money.
Hi, many aspects of life are actually investments, not gambling. In gambling, the odds of winning are less than 50%. Insurance is an investment. A failed business is an investment, if a true entreprenuer knows how to learn from his mistakes. Education and studying is a risky investment. In gambling, you have 0% chances of earning back what you have lost. And you can never learn from past earnings. Likewise, stocks are definitely an investment. Just take gamling as a form of leisure.
You are right. Though I wouldn't call it a gamble.
I would think everything in life is about risk/reward ratio and position sizing.. :p
I'll agree too. :)
Life is a gamble in the sense that it is all about Choice
half the time, people make choices not knowing what to expect. thats gambling by itself.
Investment is when you know what you are doing. and knowing how to learn from it and improvise. to the point that you are able to take failures and grow stronger.
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