Discussion in 'Non-Vegas Chat' started by sco5123, Jun 23, 2012.
Do stocks benefit you any more than gambling?
Well, stocks that pay a good dividend at least generate income as long as you hold them. And it can be argued that so-called "blue chip" stocks are a [relatively] safe investment.
But really, the stock market isn't much different than the racetrack or casino - some bets are safer than others, but ultimately you're still placing your bets & you taking your chances - some will pay off, others will crash & burn - it's just the stock market is a longer-term play than a visit to the casino.
If you are referring to "playing" the market, as in day-trading, then the two are very similar. With the exception that you can gain an advantage with the market through knowledge and skill. Although counting cards or other advantage play would be similar to day-trading.
However, if you are talking about investing, as in keeping the money in the market for long term, there is a huge difference. Gambling is a negative expectation game so the longer you play, the more likely it is for you to have a net loss. The stock market is a positive expectation game (historically speaking) so the longer you play the more likely it is for you to have a net gain.
I have always called the stock market the largest casino in the world.
I'd agree, and getting more so every day. At least in Vegas you know the rules and the odds. In the stock market, there are different rules depending on who you are, and some of the rules are blatantly not enforced.
I'm a chickenshit when gambling, if I lose $1000 in a day I'll be gutted, but losing $25k in the marketing day doesn't phase me. I guess one believes that they'll make it back, otherwise you wouldn't be investing there in the first place.
^ Agreed, I can lose my ass on a bad day in the market and just look at it like it is meaningless on paper. Lose it at the casino and I beat myself up for not doing it differently.
See you in Vegas Johnny!
Well, I lost more $$$$ in stocks this year than all my Vegas trips combined. Maybe I need to take all my cash to Vegas so I will lose it at a slower rate but yet have a lot more fun.
Hoping that your penny stocks or day trading ventures get you 100X profit is gambling, pure and simple. Investing in Mcdonalds, Caterpillar, Johnson and Johnson, Starbucks, Wal Mart, Apple etc.... sorry folks, many differences from smart investing and gambling.
You can pick up shares of MCD right now for 86-89 per share. MCD pays an annual dividend of $2.80. Their annual dividend has increased year after year for several years. The company is fundamentally solid, has cash reserves, is expanding, is profitable in overseas markets, has a solid grasp on the king of fast food crown, is fairly recession proof and will make you money in the long haul. I picked up more last week at 85 and change.
When I bring several thousand to Vegas on vacation, I have some expectation of breaking even, little expectation of winning, and a fairly solid expectation of losing. That is entertainment. Reinvesting dividends from solid stocks, which has the breeder reactor function of in turn buying more stock, to produce more dividends, and on and on, is NOT gambling.
The argument can be made that picking a stock is a gamble because you have options. In this economy, dividend stocks are proving to be king. Choose wisely, consult with a financial advisor, and research the hell out of companies before investing. Again, NOT gambling.
Buying x number of shares of "ubertech" because the rumor is that they are the next big thing is a huge gamble. Dropping $100 into a slot machine that returns 80-90% is entertainment. Investing in fundamentally sound dow components is preparing for your future.
Despite the negativity surrounding Wall Street, in recent History, solid corporations are still up year over year. Even with the recent market volatility, solid stocks have performed well. I was a heavy buyer in the post 9-11 drop, and I continue to buy on dips. The issues in the eurozone will present some buying opportunities as well. Good luck investors and gamblers.
Minus the "free" drinks!
Other than the free drinks, win or lose, one of the biggest advantages of playing in the casino is that when you leave the tables, you're not subject to the torture of looking back and seeing what would of, could of, or should of been. It's nearly impossible to get out at the right time in the market. You either sell too soon or hand on too long.
Well, yes and no. Here's a 10 year chart of the DJIA:
Pretty much where it was 10 years ago, with a wild ride in between. The adage that you can't go wrong by buying and holding is not entirely honest.
I'm right with you on dividend paying stocks and the Euro crisis going to be a buying opportunity.
In a perverse way, the negative expectation associated with Gambling seems more solid than the BS associated with Wall Street, they seem to disappoint using terms such as EBIDA, Pro Forma Earnings, Operating Earnings. The main problem today is main street can't trust wall street.
Nick, you mention one stock, Johnson & Johnson. Have you followed this company? They just can't seem to to do anything right and have had so many problems with quality, manufacturing, marketing drugs for diseases for which they were not intended. With J&J, a fish stinks from the head is as best I can describe them.
Separate names with a comma.