Investing is not Gambling

Investing means putting your money work for you and you not working for money. In other words, money works for you and the value of money increases after certain period of time. We have a tendency to work hard, sometimes very hard for money. I have realized that it is not at all necessary to work very hard to make money. You can make money if you are little smart, thats it. If you think that only working hard gets you money then think again, there are finite number of hours and you have to work more hours and if you work more hours then when will you enjoy with your hard earned money? No leisure then what is the fun of working hard?

There are many different ways you can go about making an investment. This includes putting money into stocks, bonds, mutual funds, real estate, or starting your own business. Sometimes people refer to these options as “investment vehicles,” which is just another way of saying “a way to invest.”

Investing is not Gambling. Gambling is just putting your money at risk and the outcome is not sure, you may or may not win and you always hope to win. It is just about luck and nothing else. Investing is not about luck, it is about taking calculated risk. RISK is part of investment and you can’t completely be sure of making money but the probability is high that you will make money. A investor does some ground work and expects some solid profit after considering the risk associated with the investment where as a gambler just invests and prays so that the investment he made provides him the profit.

To make it clear, consider this. A gambler buys stock based on a “HOT TIP” and does not know much about the company or anything related remotely to it whereas a Investor buys stock only based on the analysis and thorough investigations that he performs and expects considerable amount of profit for his investments.

My personal view is that, you can be an investor or a gambler, I am sure you can make money either being an investor or gambler. But be clear with your path. I don’t wish that you claim to be an investor but you act like a gambler.

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2 thoughts on “Investing is not Gambling

  1. Allen Taylor says:

    Nice writing. You are on my RSS reader now so I can read more from you down the road.

    Allen Taylor

  2. Saravanan says:

    @Allen

    Thanks Allen for dropping by and subscribing my feed. Hope to see you around regularly and feel free to comment on my articles.

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