Investing is when you buy an asset after proper research, and ascertaining whether there is a chance of making a high profit. In gambling, you blindly put your money into something which may or may not give you good returns. The risk you take depends purely on luck.

Some other positive aspects of investing are –

Investing in acquiring an asset and holding it for some time. Investing is done with specific goals in mind – for example, buying a house. Money is invested in assets such as stocks, mutual funds, bonds, gold, real estate, a small business, fine art, coins, antiques, etc. The asset can be sold at a future date when the value of these assets appreciates. The potential for making profits and the risk will differ depending on the type of asset you invest.

Investing is an ongoing continuous activity which involves investing your money not just once but several times after careful study and patiently waiting for a favorable opportunity. It’s not a matter of luck and it is a long process where results are achieved only after proper analysis and plenty of hard work. Investors can achieve their targets by taking calculated risks.

Trading.

Trading is a short-term activity that involves buying at low prices and selling for a profit. The main factor that distinguishes trading from investing is the length of time you hold on to the assets. The strategy of a trader would be to buy & sell at a profit in the shortest possible time. Short-term fluctuations in the price of the assets are usually caused by the fluctuations in supply and demand. Traders usually depend on Technical Analysis, which is an analysis with the help of charts, graphs, etc., attempts to forecast short-term price fluctuations.

Speculation

Speculation is putting your money on an asset expecting a return of investment within a particular period. A classic example of speculation is the stock market where it is best exploited. The speculation involves doing research and calculating the risk before entering a financial transaction. To be a good speculator, you must acquire a set of special skills. There are quite several things one must learn and attain to speculate for increasing your profits. The assets are bought and sold by the speculator with the hopes of making more money than the amount he had risked. The speculator takes the risks knowing pretty well that the higher risk he takes, the more could be his potential gain or also lose heavily. By speculating, one may be able to increase his chances of earning great profits.

Gambling

Gambling is expecting to make a lot of money through sheer luck and is just a game of chance. The odds are usually stacked against gamblers. Here the probability of losing an investment is higher than the probability of winning a huge amount. Compared to speculation, gambling involves a greater risk of losing the investment. Some people lose money just as fast as they have made. In gambling, you either win big or you lose heavily. The casinos, lottery, and cards are some of the things that are associated with gambling. Gambling is highly popular because with just a small amount of money you can play and win big money. To give an example, by spending a small amount of money on a lottery ticket, you may be able to win a huge amount of money that could amount to crores of rupees.