May 20, 2014

Watch Kathlyn Toh's interview with CapitalTV on their segment Out of Pocket - Share Investing Against Gambling.Is the stock market gambling? That is a question that gets asked from time to time and when you buy a stock and it immediately goes down it sure seems like gambling. When you buy stocks, you can lose all your money. So, what then, is the difference between gambling and the stock market? Are the two really that much different?When you buy a stock and it immediately goes down, it might sometimes feel like you are gambling but that is mostly out of frustration. If you do your homework and pick your stocks carefully, you should be able to make money long term in the stock market. Most importantly is you must not risk 2% of your capital in a trade.

Video Featuring:

MS KATHLYN TOH, Professional Investor / Trader & Personal Mastery Coach, Beyond Insights Sdn Bhd
Mr Lee Cheng Hooi, VP, Head of Retail Research Equity Markets, Maybank Investment Bank Berhad

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Summary

This article features an interview with Kathlyn Toh of Beyond Insights on CapitalTV's 'Out of Pocket' segment, discussing whether share investing is akin to gambling. It highlights that while market volatility can feel like gambling, informed investing based on thorough research and risk management (not exceeding 2% of capital per trade) differentiates it from pure chance.

Key Facts

Frequently Asked Questions

Is the stock market gambling?

While buying a stock and seeing it immediately go down can feel like gambling, it is not inherently so. If you do your homework and pick stocks carefully, you can make money long-term in the stock market.

What is the difference between gambling and the stock market?

The key difference lies in research and strategy. While both involve risk, informed stock market investing relies on homework and careful selection, whereas gambling is typically based on chance without such due diligence.

What is a crucial rule for trading to avoid significant losses?

Most importantly, you must not risk more than 2% of your capital in a single trade.

Who was featured in the CapitalTV interview?

The video featured MS KATHLYN TOH, Professional Investor / Trader & Personal Mastery Coach, Beyond Insights Sdn Bhd, and Mr Lee Cheng Hooi, VP, Head of Retail Research Equity Markets, Maybank Investment Bank Berhad.

Related Entities

People
Kathlyn Toh, Lee Cheng Hooi
Companies
Beyond Insights, CapitalTV, Maybank Investment Bank Berhad