Are we gamblers....?

rijayasooriya · 1 Are we gamblers....? Sat Jul 02, 2011 4:41 pm

rijayasooriya

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Some of my friends are reluctant to enter stock market saying ' This is gambling.......
Their argument is that the money circulating among is only investers money which means that one of us must loose the money in order to otherone to gain which is happening in gambling.
What do u think guys?

Slstock · 2 Re: Are we gamblers....? Sat Jul 02, 2011 5:15 pm

Slstock

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rijayasooriya wrote:Some of my friends are reluctant to enter stock market saying ' This is gambling.......
Their argument is that the money circulating among is only investers money which means that one of us must loose the money in order to otherone to gain which is happening in gambling.
What do u think guys?

"only investers money which means that one of us must loose the money in order to otherone to gain"

At some point of the trading it can be true. But what if you don;t sell to the last guy who will the looser in the chain Wink

On a serious note..

There is a different between an Investment and Gamble.

Gambling :

1) Gambling is the wagering of money or something of material value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.
http://en.wikipedia.org/wiki/Gambling

2) play games of chance for money; bet:
http://oxforddictionaries.com/definition/gamble?region=us

Investment :

1) an act of devoting time , effort, or energy to a particular undertaking with the expectation of a worthwhile result:
http://oxforddictionaries.com/definition/investment?region=us

2) In Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security of principle, as well as security of return, within an expected period of time.
http://en.wikipedia.org/wiki/Investment

Investment is not based on pure luck or uncertain outcomes if one know what they are doing and how long they hold.

Wiki also sums it up a Gamble as opposed to Investment as above. "In contrast putting money into something with an expectation of gain without thorough analysis, without security of principal, and without security of return is speculation or gambling."

Let you friend know Very Happy

the difference . Tell him to invest not gamble in the sense of the words

Last edited by slstock on Sat Jul 02, 2011 5:30 pm; edited 1 time in total

player · 3 Re: Are we gamblers....? Sat Jul 02, 2011 5:22 pm

player

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be a gambler when bull control the market,but converted to investor mood when market come to bull phase......again become a gambler when market start to show correction signs,then start to sold off the portfolios and do gambling(short term trades) until market starts to recover.
this is the exit and re enter strategy of mine, just my idea

Antonym · 4 Re: Are we gamblers....? Sat Jul 02, 2011 5:24 pm

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Buying shares - on the expectation that their value will increase - is like buying any financial asset, but probably more risky. The returns can also be higher. Success depends on the investor's foresight and analysis... Unlike in gambling, luck plays a very small part.

It is not a 'zero-sum game'; in a rising market, everyone can be a winner. I definitely do not want to gain by someone else's loss.

Sure, there are some people who treat the stock market like a casino. But I think most of us on this forum are not gamblers.

rijayasooriya · 5 Re: Are we gamblers....? Sat Jul 02, 2011 5:50 pm

rijayasooriya

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Thanks for that fine explanation brother.
This is not exactly that sort of gambling...like casino,race or 'Buruwa Gaseema'.
But will they call us 'Sophisticated Gamblers'? Wink

early · 6 Re: Are we gamblers....? Sat Jul 02, 2011 6:18 pm

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I guess whether to gamble or invest in the CSE is a decesion upto you. But either way you may lose or gain. Recently I speculated with LDEV (Gambled) , and lost Rs.40,000/- within a month (sold off). I also invested in COMB in January and now the investement is in the RED by over 100,000/-.
(still holding). But this does not mean there are traders who did not make profits on both these shares by buying and selling in a more prudent manner.Many in this forum itself would have made profits. I think what the experts do in the CSE is Skillful Trading.

Rajaraam · 7 Re: Are we gamblers....? Sat Jul 02, 2011 9:06 pm

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Good question. Yes to certain extent we are gamblers. But not 100%. Because we have lot of informaton here to make an assessment of a share and prediction could be done better than in gambling. Here you do not lose totaly even when your prediction is wrong. But in gambling if your prediction is wrong you totaly lose your bet. However I feel there are lot of similarities than disparities between sharedealing and gambling.

Last edited by Rajaraam on Sun Jul 03, 2011 2:30 pm; edited 1 time in total

hunter · 8 Re: Are we gamblers....? Sun Jul 03, 2011 11:54 am

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rijayasooriya wrote:Some of my friends are reluctant to enter stock market saying ' This is gambling.......
Their argument is that the money circulating among is only investers money which means that one of us must loose the money in order to otherone to gain which is happening in gambling.
What do u think guys?

If we think in his line, everything is gambling. Suppose you are doing a job; the government does not print any new money. How would you get money as salary? Someone has to lose money so that you can earn.

Whenever you put your hand on any money, you become a part of a macro gambling mechanism.

rijayasooriya · 9 Re: Are we gamblers....? Sun Jul 03, 2011 12:49 pm

rijayasooriya

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hunter wrote:

rijayasooriya wrote:Some of my friends are reluctant to enter stock market saying ' This is gambling.......
Their argument is that the money circulating among is only investers money which means that one of us must loose the money in order to otherone to gain which is happening in gambling.
What do u think guys?

If we think in his line, everything is gambling. Suppose you are doing a job; the government does not print any new money. How would you get money as salary? Someone has to lose money so that you can earn.

Whenever you put your hand on any money, you become a part of a macro gambling mechanism.

Do not be like 'KAKILLE RAJJURUWO' Wink

Marketinvest · 10 Re: Are we gamblers....? Sun Jul 03, 2011 1:46 pm

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Certainly not because their is 2 way trading

Hiru · 11 Re: Are we gamblers....? Sun Jul 03, 2011 5:10 pm

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To put it simple way, difference between the two is Economic Value Addition.

Gambling -Zero Value Addition-changing the same amount of money in one pocket to the other.

Investing- Any company listed look forward to be profitable in order to push share prices up and pay dividends to the shareholders. As the competition plays a decisive role when profitability is considered, doing business in the same way as previously did is not enough to be profitable. Therefore, business think about innovations and ways and means of improving efficiency in the delivery of services or product to end users. This in turn is a creation of new value which did not exist earlier in the economic system. Because of this value company can maintain dividend payments and share prices tend to appreciate.