Gamble or Invest??

by: b_t


OK, you've read the title. So, which one you are right now?? Answer that please. Can't answer it now?? Don't worry, I'll draw you outline here 'bout both of them.

First of all, I'd like to inform you that this term we'll discuss, gamble and invest, can be initiated in every aspect of your life. Including money making.

Now, let's begin the discussion.

The big difference in both lies in the one called risk management. You may see quite obviously in money making process, this risk management thing is one big thing draws line between you being an investor or being mere gambler. When you take sufficient measure in your money making by establishing good risk management when taking your decision, I can assure you that you have already put yourselves in investor area. The ones who has greater chance in making money. And more, the ones who's more likely to going home with money in their hand. On the contrary, when you just take a roll in anything you think profitable just because you see what's in front of you might benefit you, then there's big probability of you being a gambler. And money is the one that's becoming your master. Money will just flee farther from you, even when you try to chase it.

Well, before we begin next explanation, please let me tell you that nothing wrong in becoming either one, whether gambler or investor. Why you may ask?? Because the one thing need to take into consideration later is whether you make money or not. It ain't a big deal for being a gambler. You can still gain lots of money with your luck. Though, in most cases, luck only brings them as far as losing their money in the different table. But hey, it's your choice. If you can arrange your risk management system based merely based on your luck, then implement it, then you still have a big chance to take big amount of money home right??

Now then, when it's clear that I ain't making any offenses to the gamblers, I'd like to propose you bout this different mentality of gamblers and investors. This different mentality leads further toward how they manage their risk in money making processes.

Now, gamblers. Most of gambler have this whisper in their heart about how they can always make a comeback in next round. How they can always takes their money back from their opponent. No offense, but please just admit it. This, plus some sort of 'high' feeling about playing some high-money-staked games where you can't predict the outcome, resulted in a more loosened pattern of risk management. Those 'high' feeling (usually combination of anxiety and curiosity) usually is the one pushes them gamblers to keep doing what they've done further, even their common sense tell them to stop losing their money and dragging their asses closer to the grave. And it makes it really difficult to stop at any point. Whether you are winning or losing money. This phenomenon resulted in the very popular diseases of money making, perhaps even the most popular ones, in the world of investment: greed and fear. (I'll try to explain both of em later in next post).

Then, investors. OK, this is what you wanna be if you wanna come home bringing some best food money could afford. Once, if I'm not mistaken, one excellent investor defined how he made his decision in investment and money. He said at that time that what's more important is your safety. Keep your life safe first. After that, you may think about the money you wanna take as profit. But still, keep your safety first in your decision making process. Don't do something ruthless that you'll regret in later phase of your work. Hence, what we see here is some implementation of risk management. Don't always eager to giveaway your money to others. Do some measure to ensure your chance to fight in another day.

Now, please just compare both of the explanation. Then, ask to yourselves. Which one you are now. What's your attitude in your money making. Well, as for me, up to now, I haven't been able to become pure investor of money making. There's still some times when I caught up and retransformed as gambler. And losing money. Hopefully this lil' insight can give you better light in tracing your way of money making.

regards,

b_t