Life is uncertain! An act which can give immediate result when performed with the intent to possess materialistic benefits will be termed as gambling. Quite often, we hear people say that share market is for losers and it’s gambling. The reason behind this psychology is that negative talks and failure stories are propagated around us about investments and trading.
Is our ignorance making us believe that stock market is gambling? Remember, ignorance is not always bliss, especially when the outcome of a decision can cause more pain than gain. For personal betterment we all take chances in life, making sure that it’s not going to affect the life itself. A gambler takes chances and relies more on luck. His excitement will mask his decision taking capability, and the hope of rewards associated with his bet make him believe that his decisions are correct.
There is a wrong belief that investment and trading in stocks are similar to playing the lottery, single roll of a dice, spin of the roulette wheel, rummy, sports betting etc. To know how far that belief is a reality and how widely it has created fear among the public, let’s hear a conversation between two friends Krishna (K) and Arjuna (A).
K: Hey it’s been a long time. How are you? How are things going, especially with your investments in the stock market?
A: I am good. But my investments aren’t.
K: Why, what happened?
A: Stock Market is too risky. I lost a lot of money within a short time in the stock market. Don’t you find it risky?
K: No…Not at all, I firmly believe the market is not risky.
A: Believe me, stock market investment is gambling.
K: I do believe you, but not the fact that market is risky and investment is gambling.
A: Oh, come on! I have seen so many people like me losing money.
K: My dear friend, it’s all about your mindset. Let me give you an analogy.
What if you jump into water without knowing swimming?
A: Are you crazy? Who will jump into water without knowing swimming? At least, I will not try swimming without the life jacket.
K: Exactly! That’s my point. Without knowing to swim, if you try to swim it’s threat to your life. Similarly, right knowledge about investments acts as a life jacket in the sea of investments.
A: Hmmm. You have got a valid point. There is the lot to learn from you. I will keep visiting you.
K: Good that you are convinced. Ensure that you spread this knowledge.
Like Arjuna, many of us try to make a killer from our investments without even trying to understand the basics of it. The greed of making higher returns without analyzing the associated risks is the sure way of wealth destruction. This phenomenon leads to a false feeling that stock market is gambling.
When someone makes name and fame in a stock market, we attribute it to his luck, instead of attributing it to his knowledge, determination, dedication and hard work. Let us remove gambling instincts from our mind. Let’s be smart and informed investors to enjoy our journey in a stock market.