Many people – especially those not involved in either – consider investing and gambling to be two activities that come from the same source. While there are fundamental differences between the two, there are also quite a few similarities that might give them this idea: both activities involve investing money with a return (win) in mind. Also, both of them involve certain risks, and sometimes a definitive lack of guarantees.
The differences between investing and gambling have been discussed quite a few times before. Let us take a quick look at there similarities, though, a few interesting parallels that are hard to un-see.
A similar mindset
There’s an interesting parallel that can be drawn between one’s gambling habits and investing style. Those who are more prone to risk-taking are having the same attitude toward investing, and vice versa. A player betting high amounts at the All Slots’ blackjack tables will also be an investor more likely to speculate, while someone who prefers to keep their money in a savings account is less likely to play more than an occasional spin at one of the All Slots’ numerous slot machines.
If you are the one that sits down at the blackjack table in Vegas or engage in a nice game of baccarat at the All Slots, you’re most likely also the type who will not shy off from a riskier investment. If you can think of any number of better uses for a quarter than drop it into a slot machine, you are most likely a conservative investor – or not an investor at all.
Investing can be addictive
It is a well-known fact that gambling can be addictive. It might come as a surprise to some of you, though, that so can be trading. What starts out as a tool of ensuring your financial independence can turn into intemperance – a set of habits that is very much similar to other forms of addiction.
There is a fine line between working really hard and being addicted to trading. The signs can be quite clear: those spending too much time trading, getting a high off big investment wins, having nothing but the goal of making money in mind, being obsessed with stocks and investments, and most importantly hiding their trading activity from their family and friends might be on the verge of becoming addicts. And, like all other addictions, trading addiction can also ruin their relationships, push them to the brink of financial downfall, and ultimately ruin their lives.
As in all other cases, moderation is the key. Keeping your work-life balance intact can keep your eyes on your ultimate goal – not making money but ensuring the financial independence and the welfare of yourself and your family.