Gambling in Stock Market
Recently, one of my client told me,
invest in Stock market is similar to gambling, because he seem to lost money by speculate certain stocks.
First, let say you go to Genting
(Malaysia's biggest gambling company) bring with you $5,000, what's
the chances to win the money? You will say I don't know... well, you
are right, you really don't know, because you are gambling. Some may think that if they are
lucky, they might win. But I can tell you, the chances are very slim,
because Genting's business owner already calculated the risk and
rewards. They have already plan for each game, your chances are less
than 50%. If you don't believe, you can bring $5,000 to try your
luck.
What happen if you take $5,000 and
invest into Genting's share today? I can tell you, unless Genting go
bankrupt (the chances is less than 5%), if not, you can see your
$5,000 grow every year. What happen if tomorrow Market suddenly
goes down and Genting's share price drop? I will buy more, because I
can own one of the Malaysia's best company with lower entry point,
how great it is! Further more, it pay some dividend every year... ok,
I don't tell you too much, as this is a public blog.
Now decision is yours, do you want
people call you gambler or you want them to call you Investor? Do you
still think invest in Stock Market is similar to gambling?
.
Fabulous! Vincent, yr blog truly enriched with genuine knowledge...yessss!investor and gambler are two huge diffrnt title's! hahaha. I like the question you asked...great blog that provides so much knowledge to us, Thank you ..hv a nice day :D
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