Are You Investing Or Gambling?


Bangalore: One of the greatest myths about investing in stock market is, investing in stocks is a form of gambling. Many investors wonder whether or not investing in stocks is worth all the hassle. Many traders are gambling without even knowing it. Gamblers try to "beat the house." Investors want to be "the house. Gambling and investing are both games of chance. The common characteristic of the two is that they both involve factors where you put money at risk with expectations of high returns. But if one wrong move in either of the them can wipe away all your hard earned money. How do you know if you are gambling or investing? Or when gambling creeps into trading practices? Here are a few simple tests to give you a clue. Do you have a clear reason for Investing?
Are You Investing Or Gambling?
It is always best to first answer the most important question before you indulge into any of this. What is your reason for investing? It is good if you have several answers to this question. But there is a big problem if you have no answer at all. Having clear reasons or purposes for investing is critical to investing successfully. Without any reason for investing you are not going to land anywhere. And compared to the other investment options stocks tends to be the most common investment choice for most investors. Because no other investment has the potential of growth as do shares and if purchased at the right time.