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What is the difference?
Gambling is bet ,the dictionary meaning -to act in the hope, that, it will happen or it may not happen, not knowing the outcome.
Speculation, the dictionary meaning -to make a guess.to buy& to sell with the aim of profiting, making money or reaching the desired target, yet with the knowing risk of losing it.
Albeit their is a difference between gambling & speculation.
It common in world of investments and stock market to use both words gamble and speculation in same breathe.Yet who practise know .that is different.
A person needs to know the difference between the two ,& that is all ….what actually matters!!!!!!.
Let us attempt gauge the difference a speculator & a gambler.
- The speculation is a business in itself,and those people engaging in that business should determine to learn and understand it to best of their ability with all the informative data available through technology.A gambler does not think gambling as a business,but has a compulsive desire to be rich,addicted greed for betting.
- A successful speculator must & will have cash in reserve,like a good general who keeps troops in reserve for exactly the right moment, when the odds are in his favour, and then moves with great conviction, and commits his capital cash which is his reserve armies for the final crushing victory.
- Speculator is not always in the game but waits patiently for the right time & right opportunities to arise.A gambler has to play every hand every single bet every small move in the stock market.
- Speculator moves in right time to make right money and may thus make vast fortune.He has patience and uses time very rightly. He may wait wait on side lines with moolah for the perfect opportunity to come by.A gambler has no patience for this, he always have to be in the game, he is addicted to his doings or bets.
- The speculator is a good money manager or should be. He has strict money management practises.Gambler biggest mistake is not able to managing his money .
- Speculator will investigate before investing. He looks before he leaps. Gambling is akin to uncontrolled or uninsured risk.Unlike a gambler a speculator will not or does not dive into quick rich schemes. Speculators do not get carried away emotionally ,but rely on developing rational thinking habits.A good Speculator avoids losing their sense of balance on high gain or high loss.A Gambler is on a high all the time, may sometimes lose his sense of balance.
- Speculator will well formate his plan in advance, define his entry and exit well. Manage his risk well. Take proper insurance and guard his sentiments. harness them with knowledge .Speculator go for risk reward ratio before entering any venture. They time of earmark the amount of loss they will take if tide turn against them, have a back up plan ready.Before going in for a venture or buy, a successful speculator has a back up plan ready or contingent master plan ,in case his venture fails.
E.g
- In stock market,A speculator will play with a stop loss, before buying formulate risk reward ratio.A gambler will hang around people collecting tips, hot favourite of that time and act on it.
- In buying land,or immovable property ,A speculator will tie up with real estate broker, reputed financial institution & agile legal ad visors.A gambler will buy into quick rich schemes and will not invest in good brokers, or advisers.A speculator will have specific money management plan.A gambler will not spend time on any money management plan but will scrap through from some where.That anyone who is inclined to speculate should treat or look at speculation as a business and treat it that way and not pure gamble. Speculation is calculated risk.The risk is calculated before attempting the act.********
As Jesse livemore a stock market equivalent of warren buffet today had said in his memoirs:In the forty years which I have devoted to making a speculation a successful business venture, i have discovered and still discovering new rules to apply to that business.
In stock market today and to win speculate like speculator and do not gamble like a gambler.
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Comments:
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Your article reflects your passion for the subject but it requires some editing and formatting before it is ready for publication. If you interwove some examples to differentiate between speculation and gambling it would make the article more interesting.
Here are 5 things that we liked or would change/revise:
1. Title: Use of symbols in the title should be avoided. Your title should be catchy to draw in your readers.
2. Format: This piece could do with some structuring. The article needs to flow better to improve readability.
3. Grammar & Usage: This article requires a fair amount of proof-reading and editing to correct the punctuation and language usage errors. The grammar needs fixing. Spelling is weak with the wrong word being used in some places. Eg: Albeit their is… (should be ‘there’). You may want to consider our Detailed Expert Review or editing option.
4. Language: The Language needs a lot of improvement. The opening paragraph is not arresting. Even if you are opting to start by giving dictionary definitions, it is better to just say Gambling: To act in hope…outcome. (Oxford Dictionary), so that it is crisper. Or it could be formatted to be in italics and not spell out the fact that it is a dictionary definition. This style of opening is a little clichéd. There are full stops mid sentence which should not be there. This article needs heavy editing and more careful proofreading
5. Target Audience: Your audience is not clearly defined and if you are writing for readers who are new to the stock market then you need to intersperse the article with more tips. This article could be improved drastically with a good introduction and a conclusion that wraps up the article well.