Investing or Gambling, What’s The Difference?
Peter Lynch once said, “When people discover they are no good at baseball or hockey, they put away their bats and their skates and they take up amateur golf or stamp collecting or gardening. But when people discover they are no good at picking stocks, they are likely to continue to do it anyway.”
In traditional sports, it’s easy to measure if you are good based on batting average, goals scored, or other statistics. In the stock market, some investors seem to believe their next great stock idea will be the big winner that makes up for all of their losers. The question every investor needs to answer is…are you investing or gambling?
What is Investing?
According to one definition, investing is, “the act of committing money or capital to an endeavor with the expectation of obtaining additional income or profit.” What this definition lacks is the real difference between investing and...
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