There are two definitions that distinctly put a barrier between what investing means and what gambling means. Gambling is defined as risking your money by placing a chance bet on something that may or may not offer a profitable return. Investing is defined as placing an investment on a well-researched stock or share of a company with the hope of a high financial return.
A gambler is at a disadvantage as casinos have the upper hand thus the odds are much higher for the gambler. Gambling luck is always unpredictable no matter how good you are at the poker table.
You don’t own anything in gambling. For example, the bets placed on horse racing. These bets are technically placed against other bettors. The odds are determined by the total amount of money bets placed on each horse.
When an investment is made, you own a share in a company or companies depending on your investment portfolio. Generally speaking, you invest in a profitable company that pays out in dividends. Which, over a period of time, you benefit from financially.
When stock prices go up, your stocks should sell at a profit. Even though the stock market changes, either high or low, there are profits to be made if you’re in for the long-term benefit.
It is advisable to have a diversified investment portfolio as this minimizes the losses incurred by one or more companies. If invested long-term, you stand a better chance of getting the financial gains you initially invested for.
The Best Investments
Those who are new to the investment game may not know where to even start with making good investments. Studies have shown that the most profitable long-term investments have been with the stock market, bonds, and the property market.
Remember, thorough research in either gambling or investing always puts you in a better standing to make informed and strategic financial decisions. Whether you’re learning the basic rules of poker and blackjack games or have heard about a great company with high profits announced on the news!