Internet Gambling vs Investing
Internet gambling is very often in the news. The stories range from very horrible like addiction and bankruptcies to thrilling, such as super-lucky gamblers winning millions of dollars! Yet, gambling industry isn’t always about the players, quite the opposite in fact. New investments are made, new casinos are built in every corner of the planet, ground-breaking mergers and acquisitions take place. Some countries welcome the gambling business while others are fully against it introducing new legislations and complicated regulations. I try keeping up with the news and spreading the word around, letting my blog’s readers know of my own personal view.
In the meantime, internet gambling has created new opportunities for – believe it or not – investing! Like card counters, who were able to make money at the Blackjack tables of the land-based casinos, online gamblers have a huge range of games to try their luck. Given gambling laws are based extensively on mathematics and the house has almost always the edge, Lady luck very rarely should take the blame. Yet, only a small percentage of active gamblers really grasp the mechanics behind gambling, leading to a discouraging and enormous number of losing players. That doesn’t mean though that there aren’t any winners online. They just don’t shout it.
Sports betting, online casinos and online poker are regarded as gambling. What about stock and forex trading, bond investing and commodities? Shouldn’t online trading be considered as gambling as well? Oh, yes, now it’s online investing!
Moving away from internet gambling and into online investing, I am fascinated by the financial world! Nowadays almost everyone can access all the stock exchanges worldwide and trade shares of a Japanese company while being a shareholder of Google in the New York Stock Exchange. Traders and investors can risk their money on gold, silver or copper and predict the next trend of EUR/USD! Maybe a currency is weakening and it’s time to sell. Or perhaps the recent earnings report of a worldwide bank was unexpectedly positive and it’s time to buy some shares! Oh, what was that? The unemployment report came out with disappointing figures? Sell, sell, sell!
What I am trying to prove here is that internet gambling and online investing have a lot in common. That is why I talk about both of them using more or less the same words. Like in any investment, you’ll read a lot about Return-On-Investment, edge and mathematical expectation whenever I discuss a gambling-related subject or a recent development in the economic markets.
Finding an edge in internet gambling or online investing is the first step to turn into winners. Money management and discipline will make sure investors don’t go broke as their journey to financial freedom unfolds!