Difference btw stock market and gambling??

Question

well, first of all, I dont know wat a stockmarket is(dont call me dumb) i tried to search in dictionary .com but don't understand it. and please, tell me some differences.

Answer 1

What makes a successful Trader? Or Gambling vs. Trading?

A successful professional investor will have mastered the following four characteristics...

1. Appropriate Capital
2. Knowledge of the Market
3. Money Management
4. Discipline

To further illustrate my point, let me put these into an analogy. In a craps game, the amateur comes to the table with $100. He is trying to make $1000. He has a strategy, or so he thinks. But he lacks discipline to stick to it. If he gets up a little bit, he starts deviating from that strategy and making more bets. If he gets into a drawdown, he deviates from that strategy to try to get back to even. He lacks every single characteristic of a successful investor.

Now, the professional in this game probably bought in with $1000 trying to make $100. He’s not looking to break the bank, just grind out a living. Preservation of his bankroll is paramount to his strategy, and he is so concerned with that single fact that he does not deviate from his strategy. His approach to the game is based on the knowledge of the odds of every single bet on the table. Therefore, he applies this knowledge to a very well executed plan that includes what to do when he is winning and what to do when he is losing. He executes this plan with precision.
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Answer 2

As the name suggests, a stock market is a market in which you buy stocks and shares. There are several markets in the US and pretty much most industrialised nations have one. For example, in Wall Street in NY you have the Dow Jones and the Nasdaq
The difference between them and gambling is that if you invest right, you can & should make money over the long term, whereas gambling is biased toward the casino!

Answer 3

The difference is that gambling is a zero-sum game (one player's gain is another player's loss; players taken together as a group do not win or lose). This is, of course, assuming that there is no house take; if there is, the game becomes a negative-sum game (players as a group lose whatever happens).

Stock market, in contrast, is a positive-sum game (in the long run, players as a group win about 12% per annum in nominal terms).

Answer 4

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/ed075

Answer 5

Gambling is the creation of a risk for the purpose of making a bet on it. There is no economic purpose in rolling dice.

The stock market neither creates nor destroys risk. There naturally occurring risk inherent in the ownership of a business. The market provides a means to transfer that risk from those who no longer want it to those who are willing to assume it in return for the opportunity to participate in the anticipated, (hoped for) rewards of ownership.

Answer 6

gambling is a sloppy way of trying to make money at the casino, just toss money in and hope the wheels land on your money with hands in prayer position. the stock market is strategic gambling, so you are using knowledge of mathematics to your benefits to try to make money at the casino or stockmarket. hope that helped.

Answer 7

If you play Roulette in Las Vegas and you bet on Black there is a 50% chance you will lose.

If you buy a share in Toyota and you hold it for a decade there is a 1% chance you will lose because they sell more cars ever year and because they make more money every year.

I cannot explain it any simpler.

If you still have questions then let me know.

Answer 8

Not to mention when you gamble money and lose you lose it all and will never get it back, stock prices rise and fall and come back, sometimes go bankrupt the whole thing is diversification, check out my blog at http://madmoneystats.blogspot.com i give stats on cramers show mad money