Gambling industry has always divided opinion. Even though gambling often gets a bad press, one can find several punters and casino enthusiasts who rake in the profits on a regular basis. It seems that the rule of ‘house always wins’ does not seem to apply to them. Yet, these professional gamblers often do not get into the limelight as they are swept under the carpet. While gambling has to do with the bad press often than not, investors have been lauded for the skills and the ability to make money. Are we just too quick to write of gambling as a compulsive habit? Is there anything positive out of gambling?
Well, it turns out that investors can learn a lot gamblers – and even vice versa.
Trading in the stock market or any other field requires extensive knowledge and expertise, but there are several occasions in which an investment can be a word-of-mouth phenomenon. People may tend to invest in areas that they know little about. It is possible to find that such investments often in the being wrong and they could cost the investors a lot of money. Hence, it is imperative to apply strategies even in the case of investments so as to protect against the likelihood of a loss.
Loss is a common phenomenon in the world of gambling, but the successful gamblers and punters employ a range of strategies that help them reduce the risks and losses. Betting strategies like expected value calculation, Kelly criterion, and Fibonacci betting are some of the popular ones which have helped gamblers for a long time. The likes of Kelly criterion is all about sizing the bet by taking into account the probability of success. Such strategies stretch across all forms of gambling and casino games such as in slots for example, where bettors believe the size of the bet (in your staking strategy) you place is of ample importance.
Do you know that even bingo players use strategies to improve their strategies for winning at bingo? It may sound odd but bingo players use bankroll management and bingo game selection to their advantage. They also try to avoid peak hours because the experienced players know that if you play during t imes when there are a lot of players, your chances of winning diminishes. UK players will play at the UK best bingo sites and avoid unreputable ones based offshore as they know that a UK gaming site is properly regulated and can be trusted to payout if they win.
The patterns have often been one of the key elements that have helped punters beat the bookies. The process of spotting patterns and trends that make up a difference in a random event will be crucial to improving as an investor. A good gambler is not always coming up with some random numbers. Success achieved with randomness does not last for long – especially in the world of gambling.
Investors can learn the art of spotting trends from a gambler, as they often have to live on very little information on the table. For example, a poker player only has a handful of information on the table and they will have to determine the behaviour of their competitors or the dealer in order to identify a trend and take advantage of the situation. Investors are at a much better position in this regard, thanks to the availability of data like company earnings and the management behind the company. Hence, it is easier to make informed decisions but a great investor should always look even closer – just like a poker player – in order to spot trends.
Everyone makes mistakes, but successful gamblers make it a habit of not dwelling on the past and focus on becoming successful once again. Investors should be ready to accept losses, which are always possible whenever there is the risk associated. However, the difference between a novice and the experienced is not just in the way of handling a loss but also being able to determine the size of the loss.
An investor should not wait until the entire investment has been wiped out. Entering into the trade or investment with a maximum loss limit is key to success. A gambler may not be able to control the same once they have entered into the bet, but this is where the betting strategies come into play so as to apply a loss limit even before the entering into the bet – by using the bet size.
While it may seem that investing and gambling are two different fields, it is upon closer look that one would realise that both fields are similar on a number of aspects. The close examination also shows that gambling may not receive as bad as the opinion it gets. Gamblers need to go through a lot of strategies, techniques, and know-how in order to succeed in the field. There is no reason why investors cannot learn from gamblers and vice versa.
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