I am in Las Vegas this week. I am gambling and having fun. So far I am down $280.
There are similarities between gambling and investing, however there are key differences. Here are the big ones:
- Expect to make money investing; expect to lose money gambling.
- Investing returns are best measured over a year or decade. Gambling results are almost instant.
- The “best” gambling is exciting. The “best” investments are boring.
Trading stocks and especially options can turn investing vehicles into gambling vehicles. However the opposite process is virtually impossible: turning gambling into investing. Playing poker (well) can do this, but it is more like working a job than investing. The best way to turn gambling into investing is to buy gaming stocks.
