Investing Shouldn’t Be Like going to Casinos

Numerous individuals casually draw parallels between equity investments and gambling. But that is not correct. And unfortunately, due to this misguided comparison, equities often do not receive the recognition they rightfully deserve. It is widely acknowledged that, in the long run, there is no superior option to combat inflation than investing in equities. If your strategy relies solely on low-return debt savings to confront long-term inflation, a reality check is in order. Such an approach is unlikely to yield the desired investment outcomes.

No matter what other say, Investing isn’t like gambling. Unless of course you decide to do it the wrong way. And then, the line between the two gets blurred.

Time and again I have heard things like – “I do not invest in equities as it’s like gambling.”

But comparing the two like that is plain wrong.

Distinguishing between gambling and investing is crucial, as they serve distinct purposes. Gambling provides a source of entertainment, offering inexpensive thrills and the potential for significant financial gains (if luck is on your side). A friend recently experimented with casinos during a cruise holiday. Starting with a certain amount, let’s call it X, he experienced a four-fold increase to 4X, which was exhilarating. However, the excitement was short-lived as all his gains as well as principal subsequently plummeted back to zero. As I mentioned, gambling can be a satisfying short-term diversion, especially for those well-versed in casino tactics. In contrast, investing is a methodical approach aimed at building substantial wealth over an extended period.

By the way, you don’t need to visit an actual casino or a cruise ship to test your luck in casino settings these days. Casino options are easily available online. Just a search will show you how many options are there. Of course, it should be legal in your country and you should know what you are doing. These days such online versions of casinos offer welcome bonuses like with Justmarkets. It is like rolling out the purple carpet for new online players

In all honesty, common individuals might disapprove of frequent visits to casinos. However, for professionals in the field, it is akin to mastering an art or science. If you inquire, they can provide comprehensive insights into their approach. Yet, it’s best to let the experts pursue what they believe is most beneficial for them. For the majority of ordinary individuals, casinos represent an opportunity to test their luck and indulge in some leisure time.

Investing on the other hand is about the long term. When done well, it can help you achieve your life’s important financial goals. Investing should always be done with a goal in mind like saving for your child’s education, daughter’s marriage, saving for retirement, saving for your vacations, saving for house purchase, etc.

Of course one can also plan their future goals on getting their bets in casinos and online casinos. But gambling is not investing. Though there are few similarities, there is a thin line that differentiates the two. I am sure you would agree with me, that in gambling, the risks are just too high and it works only if the lady’s luck is really favorable on the day. Else, it’s not a good strategy to depend on hope-to-win as your life plan.

Sadly, there are still millions of people who think that investing money in markets is not different from walking into a casino and putting your life savings down on one big bet.

So as an investor, how can you increase your odds of investment success?

One effective approach involves maintaining prudence and placing a greater emphasis on preventing errors rather than adopting overly adventurous strategies. Another strategy is to engage in long-term investment. The extended duration of your investment enhances the likelihood of favorable outcomes. Market movements are seldom linear, experiencing fluctuations along the way. However, despite these fluctuations, the long-term trend generally shows an upward trajectory.

Similar to a casino, short-term investment endeavors may result in temporary paper losses. However, by maintaining a prolonged presence, you enhance the likelihood of realizing favorable investment outcomes in the markets. To truly establish yourself as a successful long-term investor, it is essential to embrace a strategy aligned with your financial goals, individual circumstances, and, most significantly, your tolerance for risk. Make a dedicated commitment to a long-term approach for sustained success.

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