Stock market is a good place for investment or gambling ?
When talking about stock exchange in general, I've heard somebody said that stock trading is just a gamble not good for investment. So, what experience you've had in this field, please share with me. Thanks.
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- Hoa Dang Ngoc PMP®1331114625
Hi Ms Tâm Duyên., Thank you for raising this question. I really like it.
I’ve been working years in Securities Company and have to admit that many people shy away from stock market due to this reason. I even me sometime I ask that question myself when I place a buy order especially around 2009 when there are so many of unofficially market makers.
I agree that the similarity between stock market and gambling base on chance and both high risk (you can earn a lot or lose everything) and most of the time, the winning rate is lower than loosing.
But there are still huge difference between stock investing and gambling. Let’s me explain why there are a huge different from gambling and stock investing:
1. When you buy share, you are become shareholder that make you have the ownership in that company. Most of investor think share just a trading vehicle and don’t know that stock represents the ownership of a company.
2. Gambling is a Zero-Sum game; money will go from loser to winner, not additional value ever created. By investing, we increase the overall wealth of an economy. As the listed company, they will have fund to increase productivity and develop products that can make our lives better. So please don’t confuse the investing with the zero-sum game. Further more
3. You need to have knowledge about the market. Believe me, in order to success by investing in stock market, sooner or later, you have to have a clear understanding of what you are doing with your money, You may success at first by chance ( luckly ) but there are not always a lucky draw ticket for you to play whole life. The difference between pure gambling and buying stocks of companies is that you are betting on the future of the company and you have a track record you can research. So do a research on your investment rather than just popping in some coins and letting the wheel of chance spin.
Hope this help you and ask anything you want to regarding to stock market, I will try my best to answer your question :)-
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Thanks all for your perspectives.
@ Thanh Ng.Chi - Pls explain clearly why following a global game people needs global vision and local decision ? It makes no sense to me.@ Bundik Csaba - I agree with you about the key knowledge that's is not only necessary for stock investment but for everything you want to succeed. Warren Buffet is globally famous as a legendary investor whose business principles in stock market have been tried to learn by most investors in the world. However, the current world is not the same as before due to different unexpected and unbelievable factors affecting to people's psyche and causing chaos, unsecurities, panics, worries for collapes of global-linked financial system...
@ Mai Nguyen - Pls introduce your finance teacher to me if possible, I'd like to learn more about "the nature of everything is gambling"...and " the meaning of everything" ? :-)
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Thanks Hoa Dang for your information about this issue.
I think stock market is very new in Vietnam despite it has operated for many years. In general, it's very good for long term investment but in the current global situation with uncertainties it is volatile and becomes a good place for gambling.
Putting money in stock market, of course I want to invest rather than gamble but I can not seat quietly in such volatile situation. So, What should I do to make sure my money not melting out to somewhere else ? What clear understanding I must have as you said ? Where and How to track records when doing research ? How much % trust & precise of those information records ? Please share & thanks.-
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That is a global game! If you need to follow that game, you should have global vision and local decision!
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I am looking forward to hearing more experts' perspectives and experience in trading stock in VN market as I'm very interested in it. Stock exchange is a new activity of investment in VN but has strongly affected to many people who have placed their money in it without clear understanding of how to get profits from it..So your real experience in this issue being shared here is much appreciated.
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Dear All, I think the key is knowledge. If you have no any idea about business, economics, finance, accounting, financial behaviour....just invest like a "blind monkey", most probably you are going to loose...than it's better to buy bonds.
But ask Warren Buffet about this topic. According to the book about his life titled "Snowball" he is not gambling, but have a rock solid knowledge and unbeatable experience.-
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Hi Ms. Tâm Duyên when I studied Finance, my teacher said that: "The nature of everything is gambling". We have to bet because we want to get return. And I think that's right. Often do people think gambling is bad, but I don't think so.
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