Many people think that the way to get profits in shares is like gambling. The next question would be, is it contradicting the bible or other religions? If we see people only like betting, who is quick to win, then there is a story of a barrage of losses, is it true that the stock is not gambling?
Definition and How An Activity is Called Gambling
In my opinion, this is a simple definition of gambling. In reality, gambling is snowballing, it can consist of various activities, models, and variations in patterns. There are betting one person like that definition, betting several people, even up to tens of thousands of people, or even betting online. From their activities, some bet numbers on the table, guess numbers, guess who wins, guess the results of the matches, election results, etc. In essence, gambling is the activity of guessing something with a bet. But it was years ago, now betting in gambling is really similar to stock, we also need to analyze statistically before we put our bet. You will have a live score and position of your betting online like in https://yukbola.net the sportsbook website in Indonesia, really similar with stock market report in daily.
What Are Shares?
To learn more about stocks, please read the educational article about Getting to Know Stocks. Someone who has a stock means having some of the company’s capital. This means that the person owns a small company. By holding a small company, he seems to have a company and its rights and obligations. From here, it seems stock activities are far different from gambling. But it’s not.
If you are Muslim and need fiqh guidance about stocks, there is already a fatwa about sharia shares. If you know this, it should be clear about different investment activities in stocks and gambling. Is that clear?
People Like to Bet Only; They Do not Know How to Profit or Loss
That is the negative effect of what I consider to be the wrong education. If all agree that the stock is to have a good and profitable company for him, then that person’s activities will be far from the gambling traits as above. But the negative from stock is the internal people can control the increment or decrement of a stock. It usually named as insider trader.
What is Gambling Stock?
To test it, is someone losing money and others in stock? A person can lose if he sells his shares when the value is down. A person can profit if he sells his shares when the value is rising.
Two people are investing in a stock. If the price is down, they can both lose. Maybe it’s just a different percentage. If the price is rising, the opposite can happen, both can profit. But clearly, someone will not lose money even if he sells his stock loss unless the company goes bankrupt.
In the stock model, the activity is similar to someone opening a shop to sell a product. He can profit. He can lose. A person can sell his shop to someone else when they make a profit by making a difference in the increase in capital and the value of the store that is already greater. Even stores that are at a loss can be sold to other people who are eyeing their assets or shop building.
Shares should be considered as a store business because the reality is so.
Have you ever heard of someone buying a store at a higher price than the prices of other similar stores? Similarly, in stock. There are people who buy a small amount of a company with assets of One hundred billion with an assumption of the value of a certain amount. Meanwhile, there are other people who are so eager to have a business that is willing to pay the company worth Rp500 billion. That’s what happened in the stock.
Stocks are business buys. People can profit. People can lose which similar as Gambling with Analysis
Then what about people who buy and sell shares without knowing the background of the company, its business, or the value of the company? They are like corporate buyers who are too aggressive, and they can pay too much or pay without knowing what they are buying.
If people buy shares without knowing what they are buying, then the business goes bankrupt, then the shares become worthless, this is the same as people who share a company without knowing the ins and outs of their business. Most people who do something like that can lose.
Establishing a business with good knowledge can suffer losses. How would it be if managing a business without knowledge? It can get worse. In the same way, the same.
So when you are gambling with analysis, you doing similar to stock analysis.