The Reddit-fueled stock market rallies in 2020 bring an important question back to the table. On the surface, investing in the stock market can feel a lot like gambling. You risk some capital and hope for more in return.<\/p>\n
However, there are some key differences between investing vs gambling.<\/p>\n
It certainly can feel like sitting in a casino when the market is red, and it\u2019s tempting to throw a few dollars on a stock garnering a lot of attention.<\/p>\n
Some argue that while investing is generally a long-term approach to gain market exposure, day trading is very similar to gambling. Day trading is a common practice, and it\u2019s done on any size company or investment. There are people who day trade everything from commodities to stocks, options, crypto, and more.<\/p>\n
But long-term investors like Warren Buffett<\/a> and Cathie Wood<\/a> (who founded the ARK Invest ETFs) take a different approach. So do the funds holding your IRA, 401k, and other retirement accounts. That\u2019s what you want them to do.<\/p>\n Let\u2019s dive into the intricacies and idiosyncrasies that separate investing from gambling.<\/p>\n