How To Make Your Risky Odds Work Favorably

We’re going to touch briefly on the subject of weighing up the odds with stock market trading compared to gambling. Both involve playing the odds, but one is more favorable than the other. There are differences between recreational investors and gamblers compared to professional investors and gamblers.

One of the differences being the emotional detachment of the professionals as opposed to the former. Greed is a powerful emotion which can drive any investor or gambler into financial ruins. It’s a matter of playing responsibly and thinking before acting.

Investing versus Games of Chance

Stock Market Trading

This involves buying high-quality stocks with a long-term holding period which actually ups your chances of better profits. However, stock market trading is definitely not a get-rich-quick scheme.

Gambling

We all know how this works if James Bond and his poker tournaments in Casino Royale were anything to go by. It’s not as easy as he makes it out to be. It is important to note that any gambling winnings you make, either with poker, blackjack or any gamble, requires you, by law, to pay taxes on winnings over $600.

This is where the big advantage to stock market trading or any long-term investing comes in. You are able to defer the taxes on your investment earnings by placing the money into your retirement fund. Yes, you read that correctly. How’s that for favorable odds!

What Are The Odds?

Investors and gamblers always look for ways to strengthen their performances. Gamblers use behavioral studies like opponents body language and previous wagers played. Investors use stock chart interpretations of stock trend profit performance with technical analysis.

Investors have a large amount of information available to them. They can use insider trading and information shown by the Security and Exchange Commission. Gamblers, however, have little to no information available to them except for talks of whether a gambling table is hot or not.

You stand better chances of worthwhile profit returns with long-term investing such as the stock trade market as opposed to losing money at the World Series of Poker tournament.

Leave a Reply

Your email address will not be published. Required fields are marked *