Quote:
Originally posted by johnnymk
No matter how educated people are, it's gambling, pure and simple.
There are educated gamblers and uneducated gamblers. In either case, it's still the same thing.
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Again, I completely disagree. Investing is not gambling if you are able to control your downside and you know the odds of winning or losing.
Options were created to MINIMIZE risk for asset holders, thus, it is a hedge AGAINST a gamble.
Another way to put it is that if you buy a revolver and have it loaded with 5 shots and 1 not. Then, you put it in the drawer and dont use it, you are safe. However, if you are stupid and start playing RR, then you are an uneducated idiot who screwed with something you shouldn't have. Guns are made (usually) to reduce risk (protect yourself). There are idiots who gamble with them and there are those who don't. Its not the gun's fault for taking the life.
I have used options, quite successfully, before. I understand their downside IF I SELL THEM and I understand their VERY limited downside IF I BUY THEM. If you dont go in knowing the outcome, then you are gambling. I dont gamble.
LK