A common misconception is that investing is the same as gambling 온라인카지노. Unfortunately, this misunderstanding is still not out of the blue. Investing is certainly not the same as gambling. Yet it is logical that this misunderstanding exists because investing and gambling can appear to be similar. In both cases, you make choices without being certain what the outcome will be. However, you see the same in a game of chess. Good chess players think 10 steps ahead and don’t know exactly what the outcome will be. Nevertheless, good chess players know how to win very regularly.
This will inform you about the differences between gambling and investing, and I will explain how you can reduce the risk of investing.
Don’t invest blindly, but work with a strategy
First of all, it is important to invest with a strategy. When you simply blindly invest some money in random companies, you can compare this to gambling. However, investors have a plan and know which companies to choose for what reason. That spread is also the most important. Over the past 100 years, the global stock market has continued to appreciate in constant value. There are peaks and troughs, but when we look over several years there is always an increase. As an investor, you can benefit from this increase by spreading your money well and leaving it invested for a long time.
What is your chance of winning?
When you start gambling there is often a 50% (or less) chance that your money will become more valuable. On the stock exchange, your money has in almost all cases become more valuable the moment you leave it for 30 years. This of course gives no guarantees for the future, but this has been the case all these years. Also in times of war and (financial crisis). If you are going to invest for a period of, for example, a year, you can compare it to gambling as far as I’m concerned. Even when you invest all your money in one or a few companies, you come close to gambling. When you are going to invest for the long term (10+ years) and you spread your money over many stocks, it cannot be compared to investing. Again, no one can give you any guarantees. Certainly in the short term, your money can become worthless. But below I’ve included an overview of the returns of the S&P500. These are the 500 largest US companies. Decide for yourself whether this is gambling or not:
Why some investors are gamblers
I also think it is important to mention that some investors are gamblers. Everything that has to do with investing is becoming more accessible and easier to reach these days. Do you want to start investing? Make sure you know what you’re doing. Don’t start off like a headless chicken, but make a plan and try to stick to it as best you can.