Why stock market investment is not a gamble?
In many peoples’ minds around the world, this notion has been formed that the stock market is nothing but a gambling game. While I believe it’s certainly not, Let’s figure out why!!
No matter what we do in our life, be it business, study, job, or anything else, There’s always a factor of uncertainty in that. Though you may very well be able to calculably predict the outcome of anything, there’s never a 100% of certainty. If you have ever started a business, you understand quite well that there’s always a risk factor in any business that you do, so why can’t the stock market be justified that way, right? In the stock market, when you invest your money by well-calculating everything that you can with the available amount of data about the company, that’s a predictable business model, isn’t it? If you just put in money because your friends, or maybe relatives are doing it, and you didn’t even analyze the company properly before investing in it, that’s a gamble! Let’s try to understand with some more relatable examples.
What do you mean when you say the word “Gambling”?
When It comes to definition, each and everyone can have different definitions for certain things or situations. If I ask you, What do you mean by gambling? What will be your answer or definition? Well if you ask me, I believe gambling is not a thing, rather, gambling is an approach. It can be an approach towards anything, from as small as buying something you haven’t tried before to as big as risking your life to go on a very dangerous but exciting journey. Let’s suppose, you are trying to reach a destination, and for that, you need to cross a big wide road where tons of vehicles keep coming and going all the time. Now, you can choose either of two approaches. Let’s see the first option, option A. You may say that I’ll close my eyes, and I’ll not focus on the road. I’ll just count till three, and then I’ll immediately cross the road while keeping my eyes closed. Or, you can choose another option, option B. Here you may say that I’ll first look and verify both the sides of the road to make sure that no vehicle is coming and it’s safe to cross the road and then when I’d be assured that no vehicle is coming, I’ll safely cross the road while still being cautious. Now, What will you call the first approach? It’s a gamble, You gambled with your life here. But when it comes to the second approach, It was well predicted, cautiously taken, and acted approach. So basically, These kinds of a decision can either make stock market investment a gamble, or a fortune-builder. So whether the stock market is a gamble or not, it completely depends on what’s your approach towards it.
Well, I don’t want to make this one too long because this is all that there is to say about this topic. So, let’s conclude!
Conclusion
I guess now you may be able to clear peoples’ notion about the stock market and you now can understand that why it is not a gamble, So let’s conclude it with a final thing to say: Always invest with caution. Even when you start any business, you don’t put all your money into it completely at once. You study it steadily, making progress and gaining confidence along the way, and only then investing more of your money into it. If you invest in anything that you don’t know well about and you don’t understand well enough, it is indeed a gamble. So, before making any investment, it’s wise to study and analyze thoroughly, And that’s not a gamble!!
