Gamblers vs Speculators (Investing in the financial markets)
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In this economic era that we live today, even for many years, there are so-called gamblers and speculators, many people relate these terms as if they were synonyms and although they have their similarities the truth is that there are really noticeable differences between one and the other. Because of this, some people tend to stay away from what investments are, thinking that it is like betting, when depending on the scenarios and the analysis we give to that investment, things change completely.
Now, before seeing these differences, I must first define what a bet is and thus be able to reach what the bettors are.
What is a Bet?
A bet is literally a way of playing which is based on chance, in short, there must be a specific reason why a bet is made with another person, emphasizing that there must be 2 or more betters, to start the proposal of the game for which they will win if one of them wins. That is to say, that to certain science to win in this type of practices it is due to great blows of luck, that, although they are usually related to statistical studies, if you play in a casino, the house is always won.
Now, we move on to the interesting part of the article and it has to do with the Speculators, linked to the investment of the financial markets, what we call "Trading".
What is Speculation?
This term directly related to the economy, means that it is the action of buying or selling a financial asset, with reasons to possible changes in its trend, which would trigger an increase or a decrease in its corresponding price. I commented previously when I talked about bets, that these are mostly due to big strokes of luck, in speculation even though we sought to obtain a "BETTING" profitability to change its tendency to be able to buy or sell depending on what is happening, there are numerous tools and studies (Technical and Fundamental Analysis), which can place the probabilities in our favor, leaving aside in a large percentage the luck that we would need for our prediction to be fulfilled.
It is here where the great difference between a GAMBLER and a speculator lies, in a few words, those who bet, do not have knowledge in their majori ty of what they are doing and they let themselves be carried away by presentiments linked to the luck, on the other hand a SPECULATOR, is an investor with probabilistic knowledge, layers of analyzing by means of technical and fundamental tools, which could be the next direction that takes the price referring to the purchase or sale of certain financial instrument.
My vision as an Investor
This is my vision when we compare these two stocks and the purpose of this publication is to show the two sides of the coin at the time of investing, since bets can also be given in the financial markets, in fact, 80 or 90% of traders who invest, bet without seeking to place the odds in their favor, for this and other reasons nearby, people lose money to invest and the truth is that if we educated properly in trading, technical analysis, fundamental analysis, risk management and psychology involved in executing and maintaining a trade, things would be totally different.
In each publication as you have noticed, I place a conclusion, basically giving the last details of what I think about what I express in them. Here I want to encourage people to educate themselves, seek that passion for which they want to undertake and earn money to obtain financial freedom, in my case, my passion is trading, everything that involves economic management or investments, my question to all who read this publication is:
What is your passion?
I am Co-founder of the @erarium project, in this community we offer training processes in trading, finance and economic management. Consider joining our official Discord by clicking HERE.
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