While reading some stock forums, I came across several posts stating that stocks are a gambling game:
"Never play stocks. Playing stocks is like gambling, you just have to choose the head or the tail"
Playing stocks is like gambling, you just have to choose the head or the tail. Yes, it's actually true. You see, how can that be, Bung Heze?
I often observe, a lot of traders who buy stocks without doing analysis, without looking at the chart. Anyway, buy because this stock looks like it will be fried up. Anyway, I'm sure this stock will go up;
If you trade this model, it's the same as: Choose the tail or the head? This means that you don't know whether you will win (profit) or lose (loss/snap), because there is no analysis that can be used at all. It's like you're gambling.
"So according to Bung Heze, stocks are gambling, right?" You ask in a curious tone
Yes, I agree that stocks are gambling, if you use stock instruments as a gambling arena. Like my previous paragraph, many traders trade without a clear decision basis / just guessing.
But isn't it when someone wants to do something, whatever it is, there must be CONSIDERATIONS first. Example: When you want to open a pastry business, you have to consider many things. For example, how much capital do you want to use for your business, which market share is the right one, where to buy the ingredients, and so on. It's impossible for you to open a pastry business just guessing that it will be successful without much consideration?
It's the same with playing stocks. If you want to buy stocks for either trading or investment purposes, you have to consider many things. These considerations include: What is the condition of the JCI, how is the stock chart, how liquid is the stock.
In the world of stocks, the basis for the decision to buy and sell shares is to use TECHNICAL ANALYSIS (traders) and FUNDAMENTAL ANALYSIS (investors). This is what distinguishes the stock between gambling and not gambling (business).
If so, why are there still many people who think that stocks are gambling? Want to know the answer? Read the Next Part: Are Stocks Gambling? - Part II
