Of course, what goes up must also come down, and Amazon’s stock price naturally contracted after the nadir of the pandemic was behind, and restrictions began disappearing.

In April 2020, the price of an Amazon stock sat at $1,901 per share, but by September that same year, it had reached $3,531. Those who decided to take a risk pounced right at Apple and Amazon. Thanks to the stock market’s maturity, buying stocks in tech giants such as Amazon, Apple, and to a lesser degree, Tesla and Space X mostly pays off.ĭuring the 2020 pandemic, young cohorts of investors flocked to investment platforms, exploring both the stock market and looking into new Isa and self-invested personal pension (Sipp) accounts. Investing has a clear goal: accumulate a net profit based on market conditions and the available information. However, where gambling involves a high degree of chance, investing seems to mitigate that risk by allowing traders to carry out technical analyses, risk management strategies and choose a specific set of stock to buy in the first place. Investing and gambling are two activities that are often equated because they involve risk. It requires a healthy mindset that can focus on the long-term rather than prioritize short-term gains. However, this may take some capital, no small degree of knowledge, and a flair for making the right investments. Observing the stock market, there is an almost certain positive expected return. Yet, the question remains if we can equate the stock market to the same? The negative expected return in casino gambling doesn’t discourage players from pursuing the various games and trying. “The house always wins” is a little more than a punchline, and it’s usually very true for many people. For starters, gambling is statistically designed to put the player at a slight disadvantage. Granted, while investing in stocks, Forex trading, and gambling does invite a certain amount of risk and use of capital, there are some inherent differences to both activities. Is investing gambling? Can you equate gambling in a casino to taking a risk on the stock market? It’s a fine line to tread, and you will most often than not prefer to be on the right side of this line. You have probably asked a simple but constantly-debated question on more than one occasion.

Difference between bet and gambling