Quote:
Originally Posted by ar81  Certainly if you invest in a company you know, that's fine, because you know for certain what happens to the company. But if you invest in stock market, you are not certain. Balances can be altered. Do you remember Enron? Would you bet your future on such gambling?
Also, you may need not to be a herd guy, like many investors in the stock market who react following collective emotions. |
Even when there is no foul play a la Enron, investing is gambling. When you buy a stock, you're wagering it will go up. This is not a forgone conclusion. Therefore you are gambling.
If you choose:
a) the stock
b) the time you enter your position
c) the method(s) by which you will exit your position
well, then it's a gamble where the odds are in your favor. But it's still a gamble, and some significant portion of the time you will lose.
Perhaps the definition of "gamble" is relevant here (from Webster):
Quote:
intransitive verb
1
a : to play a game for money or property
b : to bet on an uncertain outcome
2 : to stake something on a contingency : take a chance
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All three definitions clearly apply to both successful and failed investing.