WHY ISN'T THE STOCK MARKET CLASSED AS GAMBLING ?

The reason I ask this question is because I am one who occasionally likes to unwind by having a bet on the races, or on sporting events through a Multi-bet [one bet covering many games or sports], and I have on occasions dropped a few dollars into the evil that is known as Poker machines. I have quite often had people look at me like I am an idiot for spending my money on gambling, yet those people then have their entire life savings and superannuation invested [gambled] on the stock market.

Isn't investing in a company on the stock market exactly the same as picking a horse in a race and betting on it ? You have chosen your horse [company] and you have chosen how much you want to bet [invest]. You gamble on a company and if that company loses, then so do you.

One rumour through the market can promote a company and its shareholders to new wealth, but it can also take their entire life savings, depending on the rumour. Just as a rumour at the race track can have a heavy influence on the betting market. If people think that horse racing is rigged, then they better do some research into insider trading at the top end to see just how easily manipulated your life savings are. But insider trading laws only apply to the lower end of the spectrum, not the top end.

If you have money invested in the stock market, then you are gambling. If the company you bet on doesn't do well, you lose your bet. If it does well, you win off your bet. Just like picking a winning or losing horse. It just amazes me as to how many people say that they don't gamble, yet have their life savings gambled on the stock market. And when you have your entire life savings invested in the stock market, then you ARE the biggest gambler of all, and you are no better than those that you look down upon.

Just because it's called "investing" doesn't mean that it isn't gambling !

a reply to: DarksideOz

Most do take a gamble because they do not understand the market and when it drops the pull their money out at a loss. These people are just greedy gamblers.

But real investors, those who study the market and are aware of how it works will always, I repeat, ALWAYS make money over the desired and calculated time frame.

"gamble" - "invest" many times is one in the same.

"Smarter" people indulging in either one make money and lose less.

Just look at how many Trillion$ gets crucified in every financial "crises"

originally posted by: Maximus2014
a reply to: DarksideOz

Most do take a gamble because they do not understand the market and when it drops the pull their money out at a loss. These people are just greedy gamblers.

But real investors, those who study the market and are aware of how it works will always, I repeat, ALWAYS make money over the desired and calculated time frame.

Tell that to the REAL investors who had shares in Lehman Brothers

" Lehman shares tumbled over 90% on September 15, 2008"

Then bankruptcy 1850-2008 did the REAL investors see that coming?

a reply to: DarksideOz

I think you're confusing investing in a single company with "the market." I've never held stock in individual companies because it is indeed a big risk. Putting all your money in a single stock, or even a bunch of single stocks, makes for a volatile portfolio.

There are, however, lots of mutual funds that have hundreds, even thousands of companies underlying them. Take for example Vanguard's Total Stock Market fund. In owning a share of this fund, your investment is hyper-diversified. Unless the stock market completely collapses, then the investment should yield a positive return -- if it is held long enough.

The futures markets are nothing more than gambling.
Making a bet on a speculation. An assumption something will increase or decrease in value before it does. Why does this even exist?

originally posted by: Toromos
a reply to: DarksideOz

There are, however, lots of mutual funds that have hundreds, even thousands of companies underlying them. Take for example Vanguard's Total Stock Market fund. In owning a share of this fund, your investment is hyper-diversified. Unless the stock market completely collapses, then the investment should yield a positive return -- if it is held long enough.

We have a weekend radio show here where I am called "Get Rich Slow" that often offers great advice such as what you posted.

The problem is to many are looking to get rich quick and the average investor has about as much of a chance at that as they would winning the big bucks on a scratch off lottery ticket.

My Mom is still kicking herself as she once had the opportunity to invest in MicroSoft before they went public. But she didn't think it was worth the money. So she says anyways.

The stock market is a playground for the rich, they hire experts that monitor their money well. For the regular guy, their money can decrease unless you are on top of things and understand and predict the trends. Yes it is gambling of a sort for most people except those who control the system with their big purchases. Only invest what you can afford to loose, it is the same as what should be done with gambling.

originally posted by: Toromos
a reply to: DarksideOz

I think you're confusing investing in a single company with "the market." I've never held stock in individual companies because it is indeed a big risk. Putting all your money in a single stock, or even a bunch of single stocks, makes for a volatile portfolio.

There are, however, lots of mutual funds that have hundreds, even thousands of companies underlying them. Take for example Vanguard's Total Stock Market fund. In owning a share of this fund, your investment is hyper-diversified. Unless the stock market completely collapses, then the investment should yield a positive return -- if it is held long enough.

I respect your opinion but I don't think I am confusing it at all. Even by investing in a single company it is the same as picking a horse in a race and backing that horse to return a profit. People don't invest in a company because they like the company. They invest because of the potential return that company may have. A punter doesn't back a horse because he likes the horse, they back the horse based on its likelihood of a return in profit.

Whether your stocks are with one company or scattered over the market throughout many industries, it is the same principal as gambling. And the point of my thread was more to do with the mentality of a lot of investors who say they are against gambling yet in many cases have their entire life savings gambled on a company or on the stock market. It's almost as if they have convinced themselves that it isn't gambling, when in fact, it is the ultimate form of it !

a reply to: rickymouse

Exactly right. It's a playground for the wealthy. Yes, there will be the odd Mum and Dad investor that has the odd win here and there, but if you look around today the average Mum and Dad investor don't seem to be doing so well across the board, yet the wealthy just keep on getting wealthier.

They don't mind if a FEW outsiders have a win, just as a betting agency will absorb a few loses knowing that it will eventually return as a profit down the line. But over all it is always the top end that win all the time. How they make those profits is the absolute definition of insider trading, yet they never even get investigated, let a lone charged and imprisoned as we all would.

originally posted by: larapa

originally posted by: Maximus2014
a reply to: DarksideOz

Most do take a gamble because they do not understand the market and when it drops the pull their money out at a loss. These people are just greedy gamblers.

But real investors, those who study the market and are aware of how it works will always, I repeat, ALWAYS make money over the desired and calculated time frame.

Tell that to the REAL investors who had shares in Lehman Brothers



" Lehman shares tumbled over 90% on September 15, 2008"

Then bankruptcy 1850-2008 did the REAL investors see that coming?

The ones that had insider information did. I wonder why no Congress people weren't investigated on when they sold theirs shares. The world is full of trickery.