[abalone]

I'm a little surprised at HBS, this is not a very well thought out commentary.

People like to say startup investments are "like betting" and it's true to a certain degree -- it's very risky and odds are against you. But what separates it from more popular forms of betting (casinos, lotteries) is...

You have to hold on to your investment for many years.

The timeframe on returns is a huge difference between day trading and early stage investments. Day trading was a very close approximation of off-track betting. It had similar psychological dynamics driving it. You win some, you lose some, you keep coming back for more, you think you can beat the odds tomorrow if you just get some money together.

Those addictive dynamics don't play as well over a timeframe of 5-10 years. It's like buying a lottery ticket for 2020. Not as addictive.

I'm not saying there are no downsides to unsophisticated investing. Just that day trading is a poor comparison.