***The Difference Between Gambling and Investing

By Scott Barclay
The official guide to Personal Finance

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There is a fine line between gambling and investing which many people cross sometimes with the help of their financial guy.

A study not too long ago showed that the majority of those buying individual stocks lose money. I'd be willing to bet that a large percentage of those crossed the line.

Bottom line is that the odds are set against you as a gambler. That's why casinos have no clocks, pump in oxygen, its all to keep you gambling because eventually, the odds which are stacked against you will take over.

But as an investor, odds are in your favor as long as you are buying quality, not trading, etc.

Problem is that most people who say they are long term investors really aren't. Its human nature to want instant gratification and a few negative months in a row will test any investors confidence and resolve. That is exactly when many investors cross the line over to gambling by buying and selling often or trading or purchasing penny stocks or buying into a hot trend - none of which classifies as investing.

This problem is exacerbated by financial professionals who by chance make money when their clients are active rather than non-active.

I can look at a statement and tell you immediately if you have crossed over the line from investor to gambler. Feel free to email to set up a coaching call.