Stock Market is often confused with ‘gambling’. They are rather used interchangeably by many people. Owing to the risk involved and total uncertainty, trading is closely compared with gambling. Also, many fellows try their hands in trading on the sole hope of ‘good luck’. So this makes trading no less than gambling or betting. What they don’t realize is the difference between the two, which is a thin line but also a major one at the same time, and that is, the winning or losing in gambling is affected many local factors while trading is all different. It is governed by market trends and factors at a wider level.
So if you are also one of such fellows living in ambiguity, may be you’re kicking a big financial opportunity out of your window. Read out more and clarify your confusion and get benefited with actual and clear picture trading!
- The very prominent distinction between gambling and stock/ share trading is the set of rules governing them. In trading, there are strict rules which act as watchdog on trading practices because it has a direct impact on a country’s economy. For instance, in India, such governing body is SEBI [ Securities and Exchange Board of India]. Everything in market has to be performed intra vires these rules- whether that’s IPO, minimum subscription, dividend declaration or listing of companies, everything big and small has to adhere to the guidelines framed. But in gambling, without any thought, there is no such thing at all. It moves at its own whims and fancies. There is no governing body to secure the interest of investors in gambling.
- The other major distinction is ‘planning the investment’. As we all know, there are ‘n’ number of combinations available to arrange your portfolio in trading while there is no such thing that exists in gambling. There, all you can do is decide the amount that you plan to put at risk. And that is it! Whereas, in trading you can smartly plan where and how each and every penny you want to invest in the most profitable combination.
- Now the final and rather the most important thing of distinction between the two: the aid and advice of experts! You can always seek help or advice from stock market experts regarding the portfolio management, time management, risk management and even stress management! You can get guidance on every probable problem that you might face in the market. They can mentor you well on each and every aspect of trading- right from the basics to the latest trends of market. And this thing is totally missing in gambling.
So these factors must have brought a basic clarity to your mind as how they are apart from each other. Other than the ‘profit making motive’, there is nothing common between the two. This is an unending discussion though but our motto is to make the best out of the best!