gambling investors why they don't make money investing in the stock marketgambling investors usually like penny stocks A lot of people these days are afraid to invest. There are many reasons why people are afraid to invest most of which are not logical. I will outline the ones that I hear the most often and give you, reasons why they are not true. The first one that I hear many times, is investing is simply another form of gambling. This is not true because when you buy a stock in a company you are now part owner in that business so you should never forget that and its how well the business will performs is what makes you money in the long run. If a business is well managed, well planned, and it is easy to understand in the marketplace then it will probably succeed whereas a business that is hard to understand and under managed will probably not succeed or make a profit. It is true however that some people are gambling investors, these are the ones that buy stock not based on the business but based on other reasons. The reasons can include excitement, a rush, or the need to spend money on something. Some investors simply like to buy a good old lottery ticket, this is very foolish since people who make it investing in the stock market take some risks but they are reasonable risks based on good stocks that are smart run businesses.hiring investment brokers gambling investors - investing in index funds and other thingsSome cannot RESIST penny stocks or investments which are simply lottery tickets i.e., they have a very little chance of being good investments in the long run. These people should consider NOT investing in stocks but instead start investing in index funds or corporate bonds which are much safer in the long run. There are good stocks but some people cannot resist waiting for them to mature. People are impatient and want money right now, therefor they lose money instead of gaining for the future. There are ways you can tell if you are gambling, if you frequently buy a very low priced stocks with very little potential for the future than you are probably gambling in the stock market. Gambling investors are not looking to make a return on their invested capital but instead want to play a game of legalized gambling to make or lose a fortune. If you think that you are gambling than you need to stop investing in things that can fluctuate heavily into a market price that is lower than what you initially bought the securities for. Things like bonds and index funds will be much more suited for your personality type. Investors always have a some what risky personality due to the businesses they put their money into. Gamblers on the other hand have a zero sum game personality-this means that there is always a winner and always a loser 100% of the time and there are no between scenarios. retirement investing |