Gambling is defined as risking a valued thing (usually money), with the consciousness of risk and hope of gain, on a random outcome. For example, when playing at Dubai Casino or كازينو دبي you can bet 1 dollar and get 1 million dollars with the touch of a finger and in the blink of an eye!
In fact, gambling is associated with many instincts inherent in the human psyche, such as the pleasure of taking risks, the desire to break the norm, and greed.
So, more often than not, a lot of gambling-related practices sneak into investing. In fact, many traders and investors gamble without noticing it; they want to achieve an easy, quick gain effortlessly. However, investing and trading requires sincere study and hard work to achieve the desired profits.
In this article, we’ll show you the most subtle ways gambling infiltrates trading strategies, as well as what motivates someone to invest while he has gambling motives!
What Are the Hidden Gambling Tendencies?
In fact, someone who has never gambled can have hidden gambling tendencies!
This is because gambling, as we have already mentioned, is linked to deep instincts in the human psyche. This means that compulsive trading patterns and useless investment in stocks may create an addictive state similar to compulsive gambling that destroys an individual’s savings and affects his psychological well-being and the stability of his family.
Certainly, anyone who thinks he has no gambling inclinations will not be happy to admit that he, indirectly, is addicted to gambling, but he will do everything in his power to deny this fact, and this will complicate the problem more!
The investor who uses trading compulsively acts primarily on gambling motives and not on a solid strategy or well-thought-out plan. For example, investors with symptoms of compulsive gambling seek to recover their losses instead of diversifying their investments, and they constantly change their plans and feel successful only when they make a profit, while they feel very frustrated when they lose. In general, the gambling trader cannot separate his feelings from his investment decisions, which leads him to more losses.
The Desire for Social Compatibility
Although the person may not have studied trading and does not have sufficient experience in this field, the insistence of friends and social pressure on him may push him to invest in financial markets or cryptocurrencies.
This trend is particularly common when certain assets are rising. For example, legions of novice investors got into the world of crypto when Bitcoin reached its all-time high as its value exceeds $68,000 in 2021. That same year, millions of people bought Tesla stock when it reached $409.
However, people do not start talking about investing until the last stage of a bull market, so these new investors enter the market at very high prices and get small returns even in the long run. After Bitcoin achieved its highest price ever, it fell to $16,000 in 2022, and so far, it has not been able to exceed the $20,000 level!
People feel increasing pressure to fit into their social circles.
Although doing some deals to satisfy friends and surroundings is not a gamble if the investors know what they are doing, but doing financial deals without a strong understanding and real desire is definitely a gamble.
Investing in the stock exchange and trading on the Internet is a fertile environment for gambling due to the spread of misinformation and the abundance of data that floats to the surface from time to time.
The Joy of Breaking the Rules
Breaking the rules is a gamble in itself. For example, on highways around the world, governments put several radars close together but turn off the power to all devices except for one to save energy. Some reckless drivers exceed the speed limit but slow down before one random radar thinking it is the one that is on. Although this is an apparent disregard for the law, it is a form of gambling!
Rule breaking in investing manifests in underestimating learning, gathering information, studying, and experience. In fact, the gambler investor feels no value in any of these things. Instead, he feels he has an exceptional talent or hidden ability to pick which cryptocurrencies will rise 100x within a week or a stock that will go from $5 to $500 in a few months.
Researchers from Harvard University found that rule-breakers feel smarter and freer. Also, they become in a good mood after breaking a rule.
The Thrill of Gambling/Trading
Excitement is an essential component of gambling, but for prudent investment, it is a personal matter that should not affect the investment process.
For the gambling investor, trading creates feelings of strength and satisfaction, even if he loses! At least, when he loses money, he does not lose the pleasure of the experience, and he still has an interesting story to tell his friends! Therefore, when a person trades with the aim of excitement and not in a systematic manner, he will be gambling, and thus he will get the same results as the gambler; He wins once and loses many!
Investing With the “Winning” Mentality
Investing is basically a field based on possibilities, and therefore it is important to rely on discipline, methodology, and diversity. Although making money is the desired result, the desire to accumulate profits may push us away from this goal.
The prudent investor studies his losses in order to avoid them in the future, but the gambler investor chases losses in a way that makes him lose more money.
Conclusion
In fact, gambling tendencies run much deeper than many people imagine and go beyond many standard definitions. Gambling takes many forms in our daily lives, from avoiding the radar on highways to investing. People gamble with the aim of social self-affirmation and love of appearance, as well as enjoying the risk resulting from breaking the rules and winning money without hardship.
About the Author
Mr. Klink is the director of ArabHex Casino. Mr.Daniel is interested in games, investment, and making profits from the Internet. Through his site, Mr. Daniel provides a lot of useful information about reliable online games and casinos.
