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It is ALL gambling, options are just another instrument, they can make your gamble more risky or less risky depending on how you use them. Except in very rare
by hattmall 6y ago
It is ALL gambling, options are just another instrument, they can make your gamble more risky or less risky depending on how you use them.
Except in very rare cases stocks are entirely based on what investors think someone else is willing to pay in the future.
- dcow 6y agoWhen I buy TSLA stock I’m not gambling on the future of Tesla. I’m investing in electric vehicles. So it’s “value investing” insofar as that’s my motive for investing. Sure I could gamble with plain stocks in the market, but thats not my motive or goal. Others, sure. Of course stocks are based on what investors think they’re worth. Thats the whole point. It’s not gambling. Tesla is worth a lot of money because people think it is. If you’re susceptible to fomo hype trains and looking for a quick buck, you’re looking at the market as a slot machine, no doubt. Stocks pay owners other than their value in the market, too. Capitalists look to make money off the market. It doesn't mean it’s all gambling. That’s a little reductive.