Difference of Investing in Stock Market and Gambling

Written by administrator on 20 March 2012.

Difference of Investing in Stock Market and Gambling or Judi bola Agen bola

There are always uncertainties in every aspects of human life. As a matter of fact, human do not know for certain how long they will live. The same goes for financial matters, especially in these days environment, where every economic aspect is globally interconnected. Certainly it is still fresh in our mind how the global economy suffered from the Global Financial Crisis in 2008. Additionally, as the world recovered from the previous crisis, we are again hit by the European debt crisis.

This brings us to a big question that many of us have always wandered; i.e.: What is the different between investing in stock market and gambling (is called Judi bola in Indonesa). We will try to look at each of the elements closely:

Stock Market Investment

Investing in stock market is full of uncertainty and in many occasions, we heard that many people made huge profits out of stock market from careful investment they have made. One outstanding example is Warren Buffet who has become one of the richest people in the world. However, in certain occasions some people have committed suicide, due to stress caused by losses they have suffered.

Certainly when investing in stock market, we need to have a good knowledge and understanding about the global macroeconomics environment as well as the nation’s microeconomics situation. Usually, investors would monitor closely for the official data released by the central banks, such as the interest rate, consumer price index (CPI), gross domestic products (GDP), etc. Additionally, we also have to understand about the companies we are investing in, such as the business scope, the profit and loss statement and the industry environment. We need to make careful analysis and consideration on the sustainability of the business, as well as the overall industry. All of the above analysis is termed as fundamental analysis.

There is also another analysis method, which investors usually employ in analyzing the market. This method makes extensive use of charts, along with various mathematical formulas to predict and anticipate the future movement of the market. This analysis method is known as technical analysis and has gained popularity among investors as the use of computer and internet becomes more widespread and allows easy and quick access to most updated market data.

One should always have a long term view when it comes to stock market investment. It is very seldom that a stock market investor would make a substantial profit within a short period after the investment is made. However, it is noteworthy that a stock market investor can reap the benefit from the investment in two ways; i.e.: from the price increase and from the dividend that the company will distribute to its investors at the closing of its fiscal period. Hence, it is very important only to invest in companies with good business models that ensure business sustainability, so even if the share price stays fairly stagnant, but we as investors can still benefit from the dividend.

Regardless of the above said factors and various analysis made by the investors, profit and loss in stock market is also determined by the investor’s luck. Undoubtedly, the subprime mortgage crisis that culminated in collapse of some big corporate that requires massive bail out from the government in 2008 is something that very few investors have actually anticipated, because the economy was performing better than ever just a few previous months. The same also occurred in 2011, as the world started to recover from the previous crisis, the debt crisis in Greece, Italy, Spain and Portugal started to surface.

Gambling/ Judi bola

Gambling or judi bola is a high risk activity and has taken many tolls on people. The tremendous effect of gambling / judi bola usually not only affects the gamblers themselves. Gambling / judi bola habit often spreads out to the gamblers’ family, relatives, colleagues and friends. Gambling judi bola is also highly addictive and some chronic gambling agen bola addicts are known to borrow money from loan sharks just to satisfy their addiction. The outcome of a bet is usually instantaneous. Gamblers do not have to wait for a long time to know whether they are winning or losing their bets.

There are many forms of gambling agen bola, such as slot machines, poker, blackjack, baccarat and other games in casino. These games usually do not take a lot of consideration or analysis regarding the game and whether the player wins or lost usually only depends on the factor of good fortune.

Another form of gambling agen bola is sports betting, which seems to be the most common form of gambling agen bola these days. These forms of gambling judi bola have taken gambling / judi bola to the next level and in certain aspects are similar to investing in the stock market. In sports betting, the gamblers not only have to analyze the past performance of the contestants, but also have to analyze and predicts the squad that will be applied in the next match.

However, in many matches upsets are bound to happen and it may cause all analysis to fly out of the window. In fact, luck is one of the main factors that determine the outcome of the match. Take Diego Maradona’s “hand of God” goal, or how Netherlands beat Brazil in 2010 World Cup for example .

Conclusion

In closing, investing in stock market and gambling or judi bola are different in several ways, namely:

1. Investing in stock market usually requires investors to have a long term view of the market, while gambling agen bola usually results in instantaneous win or lost

2. Stock market investment usually involves more complex analysis of various aspects of the economy. Gambling agen bola usually has a simpler analysis.

3. While investing in stock market may causes huge loss, but careful investments may have a huge payout in the long term. On the contrary, gambling agen bola in long term may causes addiction and many other negative impacts to the gamblers and their families and friends.

Regardless of the differences mentioned above, it is noteworthy that there is one major similarity that lies in both stock market investment and gambling/ agen bola. This similarity is that both of them are determined by luck. With that being said, thank you for reading and wishing you best of luck, whether you are an investor or a gambler.