Myth 2: Investing Is Gambling.
What is the probability of winning in gambling?
Investing is Gambling? Gambling consists of tossing a coin and hoping for heads or tails; there is no data to analyze and you have no influence over the outcome. Gambling is a zero-sum game, which means that if you win, someone else will lose. Similarly, trading in futures and other financial derivatives, as well as buying binary options, is a zero-sum game, or gambling.
Why is the house always winning?
Source: Medium
The odds of the casino winning your money are greater than the odds of you winning the casino’s money, regardless of which game you choose to play. Because all casino games are structured to give the house an advantage, the possibilities and magnitude of prospective winnings are reduced.
For example, a roulette wheel is numbered from one to 36, so you might think this puts the...