In society there is a view that gambling online and investing in stocks and shares are very similar; and in some ways they are. They both require a capital investment that has the potential to bring financial reward. There’s also a distinct similarity in the profiles of online gamblers and those who invest in stocks and shares; but is gambling online more of a risk than investing in stocks and shares?
Gambling online
Due to the nature of the industry gambling online is of course a risk, even with a well thought out strategy it can often be hard to come out on top. Most large bookmakers turn over huge profits each quarter and even with best odds guaranteed it’s unlikely that you’ll beat the bookie in the long run.
There is a certain allure attached to online gambling at the moment and this is in no part down to the boosts and bonuses that are being offered by many major bookmakers. However, with these boosts and bonuses there is an opportunity for gamblers to make some risk free money. This matched betting believe it or not is completely legal and can be extremely profitable when done correctly
Trading in stocks and shares
When trading stocks and shares it’s difficult to separate skills from luck. The key is to find a perfect balance between the two. If your trades are well considered and structured there is an increased chance that the ‘luck’ will follow.
The difference between trading and gambling is that when trading stocks and shares you can give yourself an edge. When gambling the bookmaker/casino usually has the edge. Roulette at a casino is a great example of how they do this. Despite there being 36 numbers on the board, if your number drops the house only pays out 35/1. The casino also has an extra edge as they have 0. Roulette is designed and works in this way because casinos know that no matter what system the gambler uses, they will come out on top in the long run due to their edge. If you’re able to find an effective strategy in trading you can turn the tables and effectively make yourself the one who wins in the long run.
Despite managing to give yourself an edge there is always an element of risk when trading; it’s in no way full-proof. If it was everybody would be doing it.
Who should bet online and who should trade stocks and shares
At the end of the day it depends what kind of person you are. Many of the people who gamble online do so on sporting events. Rather than having the sole motivation of financial gain, these people sometimes enjoy the thrill of a bet; for them it makes the event they’re either attending or watching more exciting. The difference with trading is that the transactions are a lot more cut throat: the excitement and enjoyment for most is purely in the profits.
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