24-07-2023, 08:12 AM
Gambling is an activity that depends purely on luck. Buying a lottery is a gamble. So, playing the one-arm bandit or roulette in a casino is gambling.
But there are some activities that while appearing to be a gamble require some degree of skill. I am sure that the professional poker player will say that poker is such a game.
When it comes to the stock market, some invest blindly hoping to get rich by luck. But you need skills to be a successful value investor. Of course, a bit of luck helps.
When you have an activity where skill is required to win when played regularly, I would not consider it gambling. Investing in the stock market is one such activity. Just because there are those that blindly invest hoping to win by luck does not make the game a gamble.
Using the gambling analogy, if you are a skillful investor you are acting as the house in a casino where the odds are stacked in your favour. If you don’t develop your skills and invest as a novice you are likely to be like the guest in the casino.
But there are some activities that while appearing to be a gamble require some degree of skill. I am sure that the professional poker player will say that poker is such a game.
When it comes to the stock market, some invest blindly hoping to get rich by luck. But you need skills to be a successful value investor. Of course, a bit of luck helps.
When you have an activity where skill is required to win when played regularly, I would not consider it gambling. Investing in the stock market is one such activity. Just because there are those that blindly invest hoping to win by luck does not make the game a gamble.
Using the gambling analogy, if you are a skillful investor you are acting as the house in a casino where the odds are stacked in your favour. If you don’t develop your skills and invest as a novice you are likely to be like the guest in the casino.