The Differences Between Investing & Gambling

Or... Gamblers Are From Mars, Investors Are From Earth

By Scott Kalechstein


Investors do a lot of research before risking their money; Gamblers impulsively jump in.

Investors usually start small and build after a successful initial test spend; Gamblers are in too much of a hurry and start with a bang.

Investors hope for the best but factor in that losing is part of the process; Gamblers hope for the best, and crash emotionally each time they lose.

Investors are detached and disciplined as they stick to a plan they follow; Gamblers follow their whims and passions.

Investors enjoy building towards gradual increases of profits, with occasional losses; Gamblers get high off of the adrenaline rush of risk and the quick fix and promise of a huge pay out, and get very discouraged and depressed when they inevitably lose big.

Investors only invest what they know they can afford to lose; Gamblers risk much more than what they can comfortably part with.

Investors diversify, minimizing the risk; Gamblers get emotionally involved with one or two programs they think will 'save' them financially.

Investors know that all internet investment programs are high risk; Gamblers dwell in the fantasy that they have found the exception.

Investors know that all internet investing is gambling; Gamblers think that putting money in high yield internet programs is investing.


A personal note - I must confess I actively strive to be more of an investor and yet at times I act like a gambler. The purpose of pointing out the contrast is to inspire us (including myself) to be more conscious, intelligent, sober, grounded, and realistic when it comes to investing, and also ultimately more successful. It always pays to have one's feet planted on the ground