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RE: Is Trading in the Stock Market Gambling? - 7/23/2008 2:40:12 PM
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mvic
Posts: 1034
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Hi Needsmet,
You're right, the parable teaches us to use what we have been given wisely. Be it money, abilities, talents or whatever.
Let's consider a man earning $x a month and spending a lesser amount of $y. He has money left over - a saving of $z.
Would it be wise to hide $z under the bed every month; where inflation reduces its value?
He has to make that money work. Whether he saves it in a bank, insurance company or buys what we call in the UK Unit Trusts - some of that money will indirectly end up in the Stock Market. It will be invested by the banks or other financial institutions in the Stock Market; and from the money they make they will pay him interest.
That is not gambling in my view. It's the way our financial systems work.
Gambling is when he bets with someone in a game of cards (or whatever) and he stands to win or lose. It is all left to chance.
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RE: Is Trading in the Stock Market Gambling? - 7/23/2008 6:53:36 PM
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martyfran
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quote:
ORIGINAL: mvic
Gambling is when he bets with someone in a game of cards (or whatever) and he stands to win or lose. It is all left to chance.
Although not every game could necessarily be considered gambling. For example, while the outcome in Roulette is solely determined by chance, in other games such as poker, it is partly based on skill. I have a friend who for years made money each week in a local poker game, he did so because of his knowledge of probability and the fact that his opponents didn't. That might be more like investing in the stock market, because in the stock market, if you have a diversified portfolio of stocks, you expect to make money, even though some years you lose money.
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RE: Is Trading in the Stock Market Gambling? - 7/23/2008 7:14:11 PM
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GroupW
Posts: 2129
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For me, the key difference between poker and trading (both clearly games of chance to a degree) is that poker is a zero sum game while in aggregate traders are investing in appreciating assets.
In gambling, the pot is fixed - for every winner someone has to lose. The same is not true on the investing side.
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RE: Is Trading in the Stock Market Gambling? - 7/27/2008 5:02:24 PM
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Ps103
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quote:
So I think it all comes down to how and why you do something or dont do something that determines if it is gambling. Me, I just want to make a living in the stock market, pay the bills and all that.
What do you currently do for a living, needsmet?
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