Signs that you're a gambler and not an investor
1) You think of gambling as an investment
Investing in 4D and TOTO? How can it be investing when the odds of winning are always not with you? The probability of winning is probably just 0.001%. In case you didn't know how low is that, look at your bank interest rate. Somehow they are similar. Maybe even the banks gives a higher percentage.
2) You want to fire your boss when you strike it rich
Hate your boss and want to resign from your company when you strike that 1 million TOTO? Gamblers want to make money and make it fast. They think humans can fly. Investors know humans have to walk up the stairs slowly.
3) Out of so many people, you believe you're the lucky one
There are millions and billions of people out there. Somehow, gamblers think they can defy the odds and be the lucky one. Hundreds and thousands of people queue up to buy 4D but there are only a few winners. These people queuing up must be invisible to them.
4) You love tips
Fancy a lucky number tip or stock tips? Gamblers want to know which is the next hot number or the next hot stock. They strive to find out where is the lucky store which sells lucky 4D. Somehow when a store has a big winner, long queue forms up at that place after that. This brings me to the next point....
5) You love to follow the crowd
HOT, HOT, HOT is what you love. When everyone is buying it, how can it be wrong right? But you're indeed wrong. Seems like the crowd is always wrong. This is why only a few are rich but most are poor.
6) You buy more when prices goes up
You buy even more 4D and TOTO numbers when there is a 8 million draw. You buy a stock when the prices have already gone up very high. You buy a property when prices are at record highs. Well, i'm just talking about your neighbour next door. I hope so.
7) You cannot imagine what will happen when you strike it rich
How do you use your money when you have 1 million dollars? How does it feel like to instantly have 1 million dollars? A gambler has no plans for money and will not know what to do with his money. Even when they strike it rich, most lose it in a short time. This is why humans who fly will fall also. They must have forgotten that an apple on a tree dropped on Netwon's head. Newton's law states that what goes up must come down. This is why humans must climb stairs and not fly.
8) You like fun and excitement
You hate your boring job and your boring life. Fun and excitement is what you look for. Is the stock market fun to you? Becareful, you may be a gambler instead of an investor. Remember, an investor does not fly. He walks up the stairs which is plain boring and tiring too.
Finally, I'll add on the definition of gambling and investing from the dictionary.
Gambling is taking risky action in hope of a desired result.
Investing is to commit money in order to gain a financial return.
Related Posts:
Buying ToTo is buying a Dream
ReplyDeleteHi Uncle CW,
DeleteHuat Huat is the word. haha
Just don't buy stocks like buying TOTO. Quick pick stocks is a new trend maybe? :P
Some people buys insurance say, endowment plan to profit from it, so is that totally wrong? One can say 4d and toto is gambling but it is not wrong for others to view it as an investment.
ReplyDeleteStriking $1 mil toto is never easy. There are many people in the long queue to buy that dream they are yearning for. Are all of them gamblers? That dream with say, just $1 investment into toto opening up the chance the winnings for his high costs medication, paying for his hdb loan, sending his kids to university etc etc These people are not gamblers for sure.
Out of so many people, how do you know you are not the lucky one if you do not even have the slightest faith in yourself?
Everyone love tips; including stock tips. If one has a gambler mindset the be it 4d or stock market he will suffer for sure. Look no further then the famous trio blumont, asiasons and liongold.
Following the crowd is not always wrong. When food stall has a "C" cert but having snake like queue then should you join in or not. It is really up to one's preference and actual intention for doing so.
Greed is the downfall of man. Know your limit. Know what you can afford to lose. These are applicable for toto, 4d, property, stock market, certain investment seminars etc etc.
Gamblers have no actual plans for their winnings so, it never last. Real and serious investors have it all planned on what to do next, be it toto or stock market.
A little bit of greed is okay; too much of it then one becomes a greedy pig; waiting to be slaughtered.
Bottomline is, investing into toto is never Always like quick pick stock.
Hi MH,
DeleteI guess I made buying 4D and TOTO seemed bad. I'm not against buying it but I'm against buying it excessively. There are many people whose only way of getting rich is through 4D and TOTO. Some have already bought for 20 over years and are still hoping to get rich. If they had digilently saved and invested their money properly instead of depending on a false hope, they would have already become millionaires. Even excessive stock buying is not good.
Buying 4D and TOTO is alright but never let it be your only source of hope of getting rich. But sadly most people only know this only source.
Greed is always there. Gamblers do not admit they are gambling even when they get themselves into big mess. Gambling in dictionary term is taking risky action in hope of a desired result. When the outcome doesn't happen, you lose all your capital. Investing is different. Investing is to commit money in order to gain a financial return. Investors always try to reduce risk as much as possible until the odds are in their favour.
In conclusion, buying toto is ok but do not think its an investment. Its just a game that is fun to play. It buys a dream.
Before l forget, Thank you writing this article. It allows people to do some soul searching for reasons they are in the queue buying toto; gambling? or to fulfil an important dream which is beyond the reach at the moment and till the time they kick the bucket.
ReplyDeleteSame goes when one is involved in speculative stocks. Can you afford to lose it all away?
Interesting blog about this by OT83 :- http://opposethetrend.blogspot.sg/2013/11/just-for-laugh-method-of-investing.html
Say, for GA, it is okay for a very experienced trader or investor to use this method but when one is a novice then it is just digging your own grave.
Interesting write-ups by CW :-
http://createwealth8888.blogspot.sg/2009/09/gambling-investment-speculation.html
http://createwealth8888.blogspot.sg/2009/12/lottery-buying-toto-evil-of-gambling.html
http://createwealth8888.blogspot.sg/2009/01/speculation-vs-investment.html
Hi MH,
DeleteThank you for your compliments. Indeed we need to know the reason why we're doing things. Thank you for the articles. I've read some of them and its really good. Being confuse on why we do somethings will end us up in trouble.
Hi SG YI
ReplyDeleteOh no, I am culprit of item number 2.
But I used to be a heavy gambler since young. Now I am an experienced and matured gambler hahaha. The difference is I gamble now with lower risk... Hmmm
Hi B,
DeleteIs your boss that bad? Haha.. better not let him or her see this. LOL.
I heard one of my colleagues say experienced gambler too. Coz he's been buying 4D and TOTO since young. He's already 50 plus. However, he's still as broke as ever. I hope your experiences has made you a bit richer now? ;)
Whilst being reckless and picking up important lessons along the way then still got hope going into future years. Calculated risk=gamble with lower risk? Do blog about it when you have the time, would be an interesting read.
ReplyDeleteI akeen trading stocks as gambling with calculated risks. We use charts and indicators to lower risk. Is that considered gambling with lower risk? I still trade now once in awhile but I have to say its really hard work. Almost like a full time job to me. Most traders will agree also. Seems like calculated risk gambling is even harder than investing. ;)
DeleteHi SGYI,
ReplyDeleteStudying until you get a degree and hoping you get a good job = gambling?
You dated your gf for 3 yrs (a pretty long time) and decided to get married based on the knowledge you had of her on that 3 yrs = gambling?
You buy a stock based on cash flow analysis, give it a 30% margin of safety = gambling?
It's not so clear cut.
Some gambling requires you to commit money in order to gain a financial return, isn't that investing? Some investing requires you to take risky action in order to get the desired result. Isn't that gambling?
I don't think the impt thing is to differentiate between gambling and investing. Call it whatever you like. The important thing is that you put in the effort to learn whatever craft (be it gambling or investing) to excel in it and make money. When you're a professional investor, some of the actions you do would seem like gambling, esp to an amateur; when you're a professional gambler, some of the actions you do would seem like investing.
Hi LP,
ReplyDeleteGambling and investing might seem the same. But I would think money is never committed in gambling. When money is put into gambling, it is either you lose all or gain something. Investing is we're putting money into something that has some worth. Investing in education to get a degree has some worth. Investing your life in a marriage has some worth. Investing in a company through stocks has some worth. But putting money into a slot machine has no worth. Its just like a game. Trading is a game too since the money is not committed in to buy the worth of a company. Thus some people will say trading is gambling also. I don't know if you agree with me. ;)
Putting in effort is indeed important. Trading can be excelled in and some people make tons of money from trading. Balckjack can be excelled in also and some people also make tons of money from playing blackjack but they are often banned from the casino soon. Other gambling games I'm not sure if you can put in effort and make money from it. Can you beat the slot machine? Can you come out with a strategy for 4D and TOTO to increase your odds of winning? That I'm not sure.
Hi SGYI,
ReplyDeleteWell, I know someone who buys 4D a few times a month. On average, he wins at least once a month, from my estimate. Some are big amounts, some are small amounts. He definitely make more than he lose. I'm sure he had a plan on how this works, and it really works very well for him. Slot machine I'm not so sure...no people who really wins it consistently.
I'm not even sure what's the difference between trading and investing. Read a bit more into the company and buys it on whatever value you've derived means it's investing? Longer time frame means it's investing? For all I know, it could just be long term gambling..
Regarding worth, it really depends on the outcome right? Would you advise someone to get a degree in finance now, seeing how financial industry is doing so well now? The worth of that advice depends on how well it turns out in 10,20 yrs. Isn't it a bit premature to say that getting a degree is worth it? Same for wife? What happens if the marriage turns out bad? Then someone will say that you're gambling because you only know your spouse for x months and you get married. If it turns out well, then someone will say that you got a good investment.
Worth is really dependent on the outcome, of which we have no idea until it happens. Life is a gamble to me.
Hi LP,
DeleteI have one colleague who always strikes 4D. He even strikes its 3 times in a row before. Any strategy involved? He just say its his luck. Don't know how true is that. If can strike on average once a month I also want to learn the secret :p
You're right that life is a gamble. Luck plays a part. If life is all smooth sailing, it would not be life anymore. Some are more fortunate while others are less fortunate. The less fortunate ones want a better life while the more fortunate ones complain about life and take life for granted. I would say we should do our best and when problems come, we have to face it. Sometimes problems do let us learn and grow from it. Choose to be happy and life will be better this way.