Are Penny Stocks Gambling or Investing?

This is a question that can have us debating among each other for a very long time. Some of you would say that penny stocks trading is gamble, others would claim it’s not. In reality, it all depends on the person doing the tradings. Am I getting you confused? Let me break it down to you in the following paragraphs.

Wouldn’t it be appropriate to define the word “Gamble?” What is gambling? According to the Merriam-Webster dictionary, gambling is

to play a game in which you can win or lose money or possessions : to bet money or other valuable things.

Trading is more like investing because your are not betting like you would do in a gamble game. But the risk associated to it makes people characterize it the same way as playing in a casino. We all may have different opinions, that’s why this specific topic is always being debated.

is penny stocks trading gambling?

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How many of you trade stocks just like it was a gambling game? Trust me, I would be lying to you if I’d say I gamble when I trade penny stocks. If it was gambling I would not spend so much time researching prior to enter a position. Gambling is to betting even when you do not have the slightest idea of what the outcome might be. You mean to tell me this is the way you trade? I don’t think you would throw your money away so easy.

If you’re trading penny stocks and thinking that you are gambling, then a casino would be better suited for you. I have never heard of anyone says that he or she is gambling playing penny stocks trading. However, I usually read articles where writers, those who are against penny stocks, are claiming that this market is a gamble. I have been trading penny stocks for awhile, I have never gambled not even once.

If you think of it as gambling, I’m pretty sure you are someone who just choose a stock and buy some shares. If this is the way you are doing it, you’re setting yourself for failure. You need to stop that as soon as you can and try to find some articles that can teach you how.

My advice to you, if you are trading penny stocks and take it like a game, you have got to stop immediately. Losing money should not be considered as games, it is a very serious matter which may affect you in diverse different ways.

I’ve heard stories of penny stock traders making millions, I have not heard any gambler making this amount of money from a casino. Feel free to share it with us if you have heard or read about a gambler who has made millions.

I think this context has a lot to do with the way we see this particular market. Some people would enjoy trading just because the money keeps fluctuating up and down, it gives them a feel as if they were playing. But this itself is not enough to categorize this market as gamble.

To put this to bed, trading penny stock would depend on how the person perceives that. Some people would take time to conduct research on the company, they would find out what this company is selling.

They will look even deeper to see if this company is going through a good or bad time. All this information can help a trader make a better choice when it comes to picking the right stock.

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