Some might say that putting your money in the stock market is like gambling. You put your money in hoping to get a positive return. Just like gambling at a casino…you can come out with more money, less money, or with nothing. Gambling is fun. It’s entertaining. But your odds are like 50/50. Not very appealing. But is the stock market a gamble?
I’ve been investing in the stock market for a long time whether it was my 401K or buying individual stocks. I lived through the crashes and have seen my portfolio drop 25% but I also have seen my portfolio go up too. After going through my first crash in the 2000’s, I was hesitant to put anymore money into the market. I saw my investments drop and it scared me. I kept with my 401K contributions but that was about it. Eventually, the stock market started recovering and I felt comfortable getting back in.
Why Do I Invest In The Market?
After 20 years of investing, looking back at the ups and downs, I believe that investing in the stock market is good long term. Historically, the stock market (long term) goes up. Look at the historical Dow Jones figures. Yes, there are dips in the market but if you’re going to invest, you need to invest for the long haul and what this chart says is that it goes up.
Odds Are Better
Unlike gambling odds which are like 50/50, the stock market has better odds in my opinion. There are laws in place. There are regulations companies have to follow. These help lower the risks of losing your investment and give you better odds. You can follow the news and track what impacts may have on your investments. You have resources that can help you identify risk levels. With gambling, you don’t have that.
You’re More Engaged
When you invest in a certain sector or certain companies, you’re more engaged with the performance. What external factors are impacting? What new laws may benefit or not benefit your investment? What do the competition look like? You ask yourself so many questions because you want to know if your investment is still good or if you should get out. I’m stuck to the news because I want to know if I should be expecting my investments to go down or go up.
I get excited with investing in the stock market. I get that gambling adrenaline feeling all the time because I’m anxious to see what the market is going to do each day. The stock market took a dip during COVID-19 but if you invested during this time, you could have made a positive return. I invested during this time and my investments are up more than 20%. I have had my share of good and bad investments. One of my recent investments was in Apple. I didn’t just jump in, rather I took the time to be engaged through researching, looking at trends, and trying to understand the market. When I see a dip, I see an opportunity because if history teaches us, it’s that the stock market, long term, will go up. Don’t be afraid of the market. Learn as much as you can about it and make good financial decisions. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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