Crime and Law


 Expert: Playing Stocks in Daily Trading is the Same as Gambling, Not Investment


During the pandemic, day trading or daily stock trading transactions became very popular, especially among young people.

In many cases, they have never invested in the stock market before.

According to CNBC, the lockdown caused by the coronavirus gave them plenty of time to try trading apps.

When millions of Americans are unemployed, they may think trading is a way to make up for lost income.

In addition, the waning of sports betting or access to casinos has prompted gamblers to explore daily trading trends.

However, many investment experts warn that day trading can end badly.

The investor who is O'Shares ETF Chair Kevin O'Leary has compared day trading to gambling.

“Day trading is not an investment. Day trading is gambling. Nothing wrong with that."

"There's nothing wrong with Las Vegas either. But it's not an investment," explained O'Leary to CNBC. In this regard, O'Leary referred to the legendary buy-and-hold investment strategy of Berkshire Hathaway CEO Warren Buffett. According to O'Leary, he is a value investor.

"He's one of the most successful in history," he added.

How does Warren Buffett invest?

“Money is made in investing by investing and by owning a good company for a long period,” Buffett told CNBC in March 2016. “If they buy a good company, buy it over time, they will make 10, 20, 30 years of profit. from now on. ”

"And that's how you do it. Whether you like Warren Buffett or not, he understands that in the long term, it's about cash flow and about investing ... taking a position and holding it for a long period," O'Leary told CNBC.

He added, overall, that

a has no problem with day trading.

"But for me, you can go to Las Vegas or you can trade during the day. Same thing. It's not an investment. It's gambling," O'Leary concluded.

Facts about the Binomo case, not trading but gambling until it was blocked by CoFTRA

The Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade has blocked 1,222 illegal commodity futures trading sites and gambling games under the guise of trading. Of the thousands of sites, one of them is Binomo. Binomo has taken many victims with heavy losses, in fact including gambling schemes or money games that are neatly wrapped with the invitation of influencers, which seems to be a safe and legal investment. Within a week, several modes of Binomo's fraud were revealed one by one, starting from the victim who raised her voice, the presence of an affiliate, and the victim reporting to the police.

Here are 5 facts about the Binomo case, summarized from several sources:

 1. Binomo Victim Raises Voice Maru Nazara became the first Binomo victim to speak up on YouTube Panggung Inspirasi on January 19, 2022. Maru admitted that he had lost or was forced to lose Rp540 million until he slammed his laptop and told other victims who almost committed suicide.

2. Binomo Has an Affiliate The fact that was finally revealed is that Binomo has an affiliate who is in charge of promoting Binomo's working system which is similar to binary options, namely guessing the price range of an asset. Launching several sources, guessing the price range of assets which if wrong will reduce capital is the same as gambling. The reason is, if the trader's guess is wrong, the invested capital will be taken by the platform provider whose profits are shared with the affiliate in charge of promoting the related platform. On social media, the names of Indra Kenz and Doni Salmanan are referred to as trading affiliates. Maru mentioned the names of the two influencers who had incited him to enter Binomo's black hole.

3. Binomo is not trading but gambling The chairman of the Investment Alert Task Force (OJK) Tongam L Tobing said Binomo is an illegal activity in Indonesia because it does not have a permit as a commodity futures broker in Indonesia. He also said that Binomo is not trading or investing, Binomo is suspected of gambling. Binomo provides a medium for gambling by guessing whether the price of an asset goes up or down. If the guess is correct then they will receive money from the dealer, otherwise, if they lose the money will be taken.

 4. CoFTRA blocks Binomo Cs Throughout 2021, CoFTRA reported on Wednesday (2/2/2022), that they, in collaboration with Kominfo, have blocked 1,222 domains of unlicensed commodity futures trading websites and gambling under the guise of trading. From these thousands of websites, 92 binary options domains are blocked such as Binomo, IQ Option, Olymptrade, Quotes, and other similar platforms. CoFTRA also blocked 336 trading robots such as Net89/SmartX, Auto Trade Gold, Viral Blast, Raibot Look, DNA Pro, EA 50, Sparta, Fin888, Fsp Akademi Pro, and other companies.

5. Binomo Victims Report to Police Eight victims of binary options trading from the Binomo application finally reported to the Criminal Investigation Unit of the Police on Thursday (3/2/2022). The victims claimed to have suffered losses totaling Rp. 2.4 billion. The victim's lawyer, Finsensius Mendrofa, said that currently there were only 8 victims who reported it. However, the number of victims is estimated to be much higher.

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