5 ms·
The metaphor is completely specious. Every game in gambling is either you win or you lose, it's completely binary. And you own nothing. Stocks, you own a part o
by cmurf 8y ago
The metaphor is completely specious. Every game in gambling is either you win or you lose, it's completely binary. And you own nothing. Stocks, you own a part of a business, and there's effectively no chance it goes to $0 value on a single "hand". Maybe you could lose 30% on a bad day, as an on paper "loss", but you hold it or buy more, and in the long run you will end up ahead. The odds are biased in your favor with stocks, they are biased against you with gambling.
And the stock market offers the option to reduce volatility through diversification. You have no such option with gambling.
Only rather superficially, if you're randomly choosing stocks, randomly buying and selling them, then maybe on the surface they both seem like they have similar odds. But they really don't.