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Sometimes the stock market can seem as unpredictable as the casino. Between investing and gambling, which one offers more ability to take control of success and mitigate risk?
Gambling involves making short-term bets without keeping a long-term financial future in mind. There is little one can do to mitigate the risk inherent to gambling. Roulette is an example of a game that involves making bets on numbers, and illustrates the large amount of chance involved in gambling. Due to the nature of the game, where the odds are against the better's favor, it will eventually consume the entire sum of money gambled if thousands of games are played. Investing, like gambling, may also lead to losses, but diversification among a well-diversified portfolio of many stocks can reduce the impact of those losses.
Additionally, investments have time on their side. It is argued that over the long-term gains are possible because over time world economies can improve due to rising populations, trade, new inventions and specialized production processes.