How to Tell a Smart Investment from a Risky One
- Marshall Pastore
- Oct 16
- 2 min read
FinStrike helps teens build real-world money skills through a four-year financial literacy curriculum, a Smart Tutor that helps students around the clock, and extensive free resources for parents and students.
Everyone wants to “get rich quickly,” but here’s the truth: most people don’t invest. They gamble and call it investing. If you learn to spot the difference early, you’ll save yourself a lot of stress, regret, and lost money. Let's make smart investments together.
Gambling Feels Exciting. Investing Feels Boring.
That’s the first clue.
Gambling makes your heart race. You refresh your screen, scroll for updates, and talk about it like it’s breaking news. It feels like winning is right around the corner.
Investing? It feels slow. It feels boring. It’s like watching grass grow.
But that “boring” grass is compounding quietly in the background, turning small amounts into serious wealth over time.
Meme stocks, crypto pumps, and “can’t miss” tips promise instant gains, but they’re just digital casinos dressed up with fancy words.
Investors Have a Plan. Gamblers Have a Feeling.
Gamblers move on instinct: “I think this is about to explode.” Investors move on math: “Here’s the data, here’s the time horizon, and here’s the risk.”
If you’re putting money in without a clear reason or exit plan, it’s not investing. It’s guessing.
Ask yourself:
What’s my time frame for this money?
What would make me sell?
How much can I lose without freaking out?
If you can’t answer those three questions, take a step back.
The 10-Year Test
A simple rule: if your “investment” wouldn’t make sense to hold for 10 years, it’s not really an investment.
Index funds pass this test. They track the market, cost little in fees, and compound over decades. The companies inside them might change, but the system keeps running.
The hot stock or coin of the week? That fails the test. It’s built for quick hype, not steady growth.
Investing is about time in the market, not timing the market. Even small, consistent contributions win over flashy bets.
You Don’t Need to Be an Expert
Good investing isn’t about IQ. It’s about discipline. It’s not about picking winners, but it’s about avoiding losers.
Start simple:
Open a Roth IRA if you have earned income.
Automate monthly investments into a low-cost index fund.
Don’t touch it. Don’t tinker. Let time work.
That’s how real wealth builds. Not overnight, but over years.
The Bottom Line
Smart investing is a test of patience, not prediction. Gamblers chase highs. Investors chase progress.
If you’re serious about building wealth, stop trying to win fast. Start trying to win for generations.
Every time you feel FOMO, remember: slow is smooth, smooth is fast.