When it comes to making money by gambling or trading, most people agree that both options would be a risky deal. But you might also have heard the following proverb: “nothing ventured, nothing gained.”
Trading and gambling are considered to be very profitable online activities. Therefore, a logical question arises — what is more profitable? And that’s what we’re going to find out right now.
Making money as a gambler
Once you hear it, you start to imagine someone living a luxurious life. It seems that gambling is what only rich people can afford. But that’s a misconception. Gambling itself is a broad niche and it holds plenty of opportunities for everyone. Here are a few of them.
You can try gambling once and become a happy owner of a huge life-changing jackpot. It’s worth mentioning a couple of the largest casino strikes like these:
- British soldier Jon Heywood managed to win €17.87 million from betting as little as £0.25 on online slots;
- A 40-year old male from Helsinki won about €17.8 million playing online slots;
- An anonymous man from Norway hit $12.58 million by also playing online slots.
Also, you can start your own blog about gambling. A bright example is Katie Wager. She is a gambler, who runs her own blog devoted to online casinos, game tips and hacks. With it, she proves that everyone can profit from gambling online.
Other benefits of playing in online casinos are tiny house edges in the games like blackjack, slots, roulette, etc. For you, this means that by making a few spins at slots, you will lose only a small amount of money. And, of course, you can take advantage of the perks provided by popular online casinos. They may not only increase your chances of winning but may also double the earned amounts.
But unfortunately, profiting from online casinos has several disadvantages. First of all, almost all online casino games are luck-based. And there’s no existing strategy that can help you on a regular basis. This is the factor that actually works in the house’s favor. The Economist states that the aggregated gambling losses are calculated at $100 billion per year. And the overall gambling debt amount stands between $55,000 and $90,000. So, in this case, it’s advisable to manage your bankroll, set limits on winnings, losses, and time spent. Besides, always remember to take a break even if you’re winning several times in a row.
Earning living as a trader
Trading comes in stark contrast to gambling. Although this online activity involves risks (just like gambling), it relies more on trading skills and market moves rather than on luck and odds. Usually, traders are equipped with huge amounts of information about the current state of the market and tools for determining the trends. So, having valid data backed by accurate analysis (both technical and fundamental), you may expect huge chances for success.
If gamblers may suffer from emotional swings, traders tend to rely on deep research and rational thinking. Such an approach will help you identify both favorable and unfavorable moves of the market, and capitalize on that. And here are a few examples of people who have succeeded in this sphere:
- Jesse Livermore managed to short on the 1929 market crash, and earned $100 million on the go;
- Richard Dennis obtained $200 million within 10 years by speculating on the market.
There are different types of trading to opt for. But usually, it’s divided into long-term and short-term types. Long-term trading is all about investing small portions of money over the long run. While short-term trading is more about accumulating funds during short trading sessions. Although it bears some similarities to gambling, trading is considered a safer bet. Here, you can get moderate and steady income in a thoughtful way.
But the biggest drawback of trading is that the market is highly volatile. Since it’s very dependent on the market moves, volatility makes it hard to outline any predictions. While the market crashes may lead to heavy losses. There are cases when traders lost from $100 million and higher. Thus, to minimize your losses it’s advisable to diversify your trading portfolio, monitor the market state, follow the news, and respond quickly.
What will bring you great returns?
We discussed the peculiarities of gambling and trading activities. Also, in this article, we tried to provide you with relevant data for both options so that you can compare it and draw your own conclusions. As you can see, trading and gambling are equally profitable. So, it is up to you to decide which activity you like the most. Choose the option that you know how to deal with, and that will bring you joy.