Comments on: Is stock trading technically a form of gambling?

By: Spike

Spike — Sun, 21 Jun 2009 19:58:19 +0000

Stock Trading is not gambling if you have knowledge. Buying financial stocks before the TARP was in place was gambling, but buying the USO (crude oil) ETF when crude was under $40 was smart. The demand for crude isn’t going to diminish for years. It may not triple like it was last summer, but it could double again.

Buying consumer staples companies with a dividend of 4% or more isn’t **** trading but you won’t lose your shirt. If these funds are in a 401k you don’t pay taxes.

By: Space Invader101

Space Invader101 — Thu, 18 Jun 2009 10:18:22 +0000

Yes. However, you can create better odds than in a casino if you respect the market and risk management.

If you want to invest in the stock market and not gamble, then forget about price movement. Find quality profit making companies that pay dividends. Then you’re really buying an asset, thus an investment.

You wouldn’t buy rental property without having tenant. So why invest in companies that don’t pay dividends? If you buy and continue to hold quality stock in companies that continue to generate profit and pay good dividends then you’re return on investment isn’t the share price, but the accumulation of dividends from your purchase price.

In a nutshell: If you’re buying low and selling high then yes, you are gambling. If you’re accumulating stock in several quality companies to build a second income stream through dividends, then you are investing. I have 2 seperate trading accounts so I can do both.

You won’t get super rich by investing in the stock market, but you will at least be able to sleep at night.

By: tjfinvestor

tjfinvestor — Tue, 16 Jun 2009 15:51:33 +0000

It can be if you don’t do your homework.

By: mntndo

mntndo — Sat, 13 Jun 2009 12:17:26 +0000

“These master gamblers are super rich while ordinary investors are [losing] money.” Warren Buffet isn’t ordinary and he lost 25 Billion, as did many billionaires. Mutual Funds, even conservative one’s are down 30% or more. If any so called master gamblers are making money it’s because they are smarter than the public. I don’t buy into the gambling theory, that’s like saying the odds of most companies making a profit aren’t very likely the majority of time. We also know in the long run the stock market has better returns than any other investment. Where’s the gamble in that?

By: ki k

ki k — Fri, 12 Jun 2009 01:13:00 +0000

Stock market is good and safer than forex trading. My expiriance in market is from 2 years and i earn good profit. Good luck.
If you have a little time you can review my blog, there is all what i learned
Regards

By: Beau.Gus

Beau.Gus — Thu, 11 Jun 2009 20:25:34 +0000

You misunderstand the nature of stock ownership…if you own a share of Microsoft, in a very real way you own a tiny chunk of that Corporation…”they” don’t decide whether a stock goes up or down, YOU do, based on your actions as a buyer or seller…

So no, it’s nothing like “gambling”…

And you have not “lost” a single penny until you sell and so “lock in” any downward fluctuation in a share’s price!

By: stephenweinstein

stephenweinstein — Thu, 11 Jun 2009 08:34:09 +0000

You lost it to whomever sold the stock that you bought.

No one is really in control. No one decides which days the stock goes up and which days it goes down.

The “master” investors/speculators who have the most influence/control are not getting rich. Many of them have lost millions, or even billions, in the last year. If you only lost $20,000, you are doing better than they are.