I often hear people say things like „Isn’t investing in the stock market just like gambling?“
They think that because the market is going up and down and sometimes even crashes it’s completely unpredictable and therefore it’s like gambling. I’m an investor and I can tell you that investing in stocks is not at all gambling.
Well it depends … if you follow strategy or not. If you randomly buy stocks and sell whenever you feel like you need some money back, that’s not following a strategy of course. There are even professional gamblers who follow certain strategies based on systems combined with money management, making an income from gambling. But that’s still not investing.
Even with the stock market going up and down and crashing sometimes like it’s currently the case you will still make profits IF you follow a certain strategy. Sure we can never predict how things are going to be like in a certain time but we can study the market and make our investment decisions based on a system that works. The rest is „just“ strictly following the strategy and keeping out our emotions ;)
In one of my lives on Facebook I further elaborated on this topic. So if you’d like some more details, you can watch it here:
Why investing is making money, gambling never will be.
Posted by Lukas Xu on Tuesday, 24 March 2020