My uncle used to day trade. He would buy in the morning and decide by his gut when the stock might rise just a little. Then he would immediately sell. He believed all investing was a gamble. He didn’t want the money to grow over time, but just wanted to take the money and run, even if it was $1 more. What thrilled him was not really the gamble, but the feeling that he had insider info and had an “angle” on everything, as he sniffed out every internet rumor and whisper in the grocery line to determine just what the hot stock might be.
He walked away after the fun wore off for him, but there are many people who are addicted to it. Another newer form of quickly buying and selling investments is binary trading. You basically gamble on a stock going up. It is called a binary trade because the investor gets the cash, or walks away with nothing. Unlike traditional stocks, you don’t retain the stocks, even if they are low, to hold on to for another day in hopes they will go up in the long term. For example, you can invest a certain amount per share speculating that a stock will touch a certain threshold, and if it does, you receive a payout, and if not, you lose your money.
If you are not careful, you can lose a lot of money and it is especially perilous for those with a gambling addiction pointing to it as an “investment.”
Binary investing originated in European markets and has caught on elsewhere. For those careful with their money, it should be a clue that many holding companies and brokerage are based in Cyprus. One, cedarfinance.com, is actually based in Germany, so its a bit easier to redeem one’s money.
If you have a loved one in recovery who is turning their life around by investing rather than gambling, pay close attention that the money is in savings, CD or 401K and they are not venturing into a potentially addictive practice that they are pointing towards as “investing.” To some it is, but to others, it is legitimized betting which bird flies off the wire first.