Quote from: Youngkhngdiddy on October 28, 2023, 10:39:47 PM

Quote from: Shamm on October 28, 2023, 05:07:39 PM

Yes you are right that mate gambling and trading are not the same in all aspects cause trading is you can earn money and Also its matter on knowledge while in gambling as we all know that the only thing they need to do in order to win in gambling is they will pray that The brought thier luck, cause in the world of gambling luck is the only way to win a good amount cause when the gambler don't have his/her luck then they can't win.

Gambling and trading are two different concepts. Across the world, across ages making money quickly is considered gambling I will put it this way. Anything and everything you’re doing in the world is gambling one needs to understand the concept of probability pertaining to various jobs. But the fact remains, when one is gambling the odds are not in your favor. But when one takes a trade or invest, he is taking a decision based on the data he has at his disposal the best trader/investor are the ones who enter into position when the probability of success is high. The trader who do not analyze data before entering a position tend to lose money. Whereas its is the exact opposite when it come to gambling. Gambling is strictly base on luck even when the smaller odds are best possibility of winning.
Casino games are designed to have a negative expected return. If you play games in a casino, then over time you should be expected to lose money. This is because the casino has set the odds so that you will lose money more often than you will make it. You are a customer paying them to experience risk. The stock market as a whole should have a positive expected value. If you passively hold onto a broad market index of stocks, you should make money over time. This is why the stock market exists- to give investors a positive return in exchange for taking on risk. In fact, in the stock market, the companies who issue stocks are basically the customers and they are paying you as an investor to take on risk. This is in contrast to the casinos. The fact that both of these institutions exist is kind of interesting. The stock market (like insurance) functions because people are, by and large, risk averse. Casinos function because, every now and then, people want to actually pay money (by losing it) so that they can experience risk.

The difference you pointed out between trade and gambling is very important. All of Tom, Dick, and Harry seem to mix them up, even though their main ideas are very different. There are risks in life in general, but investing is a planned one, right? Traders plan their next move by looking at data, figuring out the odds, and guessing what will happen. What are the odds? They are managed to work in their favour by analysing them very carefully. At the same time, bettors throw their coins into the abyss of chance, hoping very hard for a jackpot.

What you said about casinos and the stock market is right on the mark. In their most basic form, casinos take money from people who want to play by using games that statistically guarantee loses over a long period of time. On the other hand, the stock market is more about taking measured risks with a strong understanding of the basics. There is no such thing as luck in this; you have to do study, understand trends, and make smart choices. The desire to make quick money versus the skill of strategic money management: two paths, two results.