Professional gamblers are actually making investments
Gambling is a high-risk recreational activity. For a long time, many gamblers have devoted themselves to it with fervent enthusiasm, but few of them can finally gain from it, and more than 90% of them end up with failure or even big defeat. As a result, people often habitually regard gambling behavior as a special personalized activity, and not directly related to the social economy. So the vast majority of people have difficulty identifying gambling as an investment behavior. This is because gambling has always been characterized by high risk and lack of rational management of invested funds. That is why people do not associate such a special speculative behavior with investment. In fact, this is a long-standing misunderstanding of gambling behavior.
To some extent gambling has great similarities with stocks, securities, futures, etc. The difference is that in the former, returns are far more correlated with personal control than in the latter. The latter is more closely related to the political, economic, military and business environment. If you can put aside the above factors and consider the change in chips in gambling as a change in the curve of a stock or futures index, you will find that they are the same. The curve goes up and down at a certain time with time, and it is this fluctuation in the curve that gives the investor the opportunity to make a profit. Stocks and futures indices fluctuate significantly over a longer period of time and can choose to benefit from fewer opportunities; a bear market may well have to wait several years for a turnaround to occur. Gambling, on the other hand, is different in that it can have the opportunity to choose in just a few seconds. So, why do gamblers mostly end up failing while stock investors mostly get the expected returns? The main reason is that gambling this investment activity after time compression, extremely difficult to control, the casino not only use favorable rules, more is the use of human nature's shortcomings, the so-called gambling is actually the psychology of defiance, defiance is unwilling to lose, must win, the psychology has appeared paranoid, "for only to lose, the insistency of defeat", in the good fortune when The result is that the winnings are instantly turned into ashes, and more often than not, even the capital is lost, where there is still a sense of "risk" in the brain, "stop-loss" concept. Gamblers usually do not have long-term goals and strategies: lack of awareness and means to spread the risk; in the action to act too arbitrarily; at the same time gamblers have more than a fluke and greed. In contrast, successful stock investors have clear long-term, medium-term and short-term goals and a sense of risk diversification and planning. Gamblers do not have a capital plan and a return plan. When they win, they always think that the capital in their hands can be infinitely inflated, and when they lose, they refuse to stop and fantasize about turning over their money in a few hands, which eventually leads to a loss of money. The successful stock investors will usually make an effective analysis of the stock market market, and subsequently set a corresponding return target, short term investment pre-set amplitude limits, while not putting money into a certain category and a certain stock to diversify investment risk, and then wait for the time to gain.
For thousands of years, casinos have always had the last laugh. This fact tells us that no amount of techniques and secrets can lead to the final victory. To change this fact, gambling alone cannot achieve the goal, only to change the concept of gambling to investment, using a similar way to short-term investment in stocks, through the accumulation of small wins to achieve the goal of long gambling will win. In fact, some experts have already proposed to establish the concept of investment in the casino. The book "A Long Time to Win" has a shadow of investment, but the requirements of the text on personal psychological quality is difficult to do, while the lack of specific strategies and methods.
So how do you change gambling into rational investment behavior?
First, pool the available funds to create an investment fund for casino activities. Limit each use of funds to a maximum of three percent of the total fund. When the fund is growing positively, the amount of money available for each investment increases proportionally, and vice versa. This way the fund is like a ball that is constantly expanding and contracting to withstand oscillations and never disappear, no matter what happens. Then establish an appropriate return target. Risk and return are proportional to any investment, and we cannot imagine getting several payouts or even hundreds of times the return all at once. When the fund growth exceeds 10% or more, the growth should be withdrawn as profit and not reinvested as equity. Since the curve of fund growth is linked by the gain points in each activity, we should not pursue big wins in each activity, but avoid big losses through amplitude limits, pursue medium wins, accept small wins or small losses, try to avoid medium losses, stick to this long term gambling strategy, and wait for the predetermined results. Suppose we have $1,000 for each activity, when putting $1,000 as a bet, no one can predict whether the result will be a win or a loss, the result is purely by chance, which is what we call luck. And when we divide the 1,000 yuan into 100, we have more than 100 betting opportunities, each bet is the point, it is these points constitute the line, and this constantly extended fluctuating curve gives us the opportunity to gain, in the curve we can see the seven possible situations of each activity: big win, medium win, small win, draw, small loss, medium loss, big loss, in a certain period of time, the seven If we set the amplitude limit to 50% in advance, assuming that it falls to negative 30% and then rises to positive 20%, we unconditionally end this activity, knowing that the greater the amplitude, the greater the risk, through these two different ways of activity, we can understand that the former is a bet, the consequences of which can not be controlled, the latter is a short-term investment, the results of which can make a variety of choices. The above are only specific strategies and methods, in fact very few people can strictly follow the rules of investment. Most people know that the road to death, still defiant, the key is that these people do not have a correct understanding of gambling behavior and the lack of good psychological quality; like a driver who does not know how to drive a car on the highway, as much as a bad luck, if you know that if you do not follow the rules of driving will be destroyed, there are people who dare to take the risk? Therefore, to participate in gambling you must first know the serious consequences it can bring! In fact more rigorous training is needed than the average investor! During the gambling process people are always influenced by the good and bad cards, leading to emotional fluctuations to make irrational bets. When the gambler understands the reasoning behind the investment strategy and only cares about the changing curve of the chips during the activity and waits for the right result to appear, the win or loss of a particular bet becomes unimportant and the natural mindset will not be affected. I believe that everyone can easily understand the above mentioned to invest not to gamble, but this does not mean that has the ability to actually act, need a long-term exercise process, the fact that most people can never do.
The ordinary gambler's mind is always so irritable, all want to find the absolute looking for surefire techniques to win the casino, hate to get rich overnight, the mood floating to the extreme! In fact, what is the key to successful speculation? Specifically applied to the process of investment, is the cultivation of the mind is far more important than basic skills. Anyone who thinks they have sufficient skills should operate with great accuracy. But just being able to do that is still not enough for investing. A higher stage of perfecting investment skills is money management, that is, one can acquire the ability to handle multiple gambles on the premise that one can handle them well in a single gamble. This is how one can control the risk and increase the overall return. Only with a stable mindset in implementing the principles can one survive in the long run and handle gambling more consistently.
Participating in gambling with investment ideas is merely completing the queue from gambling illiteracy into professional gamblers. Only those professional gamblers who have learned money management and can address psychological fluctuations, control their emotions and keep strict discipline are excellent professional gamblers.
Some words for you to experience.
The principle of quantitative change and qualitative change. This principle is to analyze from a philosophical point of view how to manage money scientifically in gambling, or how to win is the most scientific and reasonable way to win money. 1000 yuan cost, I said I can earn 2000 yuan a day, people will definitely think I bragging and hoodwinking people. But if I say I can earn 200 yuan each time, people will certainly believe. Then if I say that I can have 10 such opportunities a day, people will definitely accept it. Then the 10 times of 200 yuan is not 2000 yuan? This is the power of the principle of quantitative change and qualitative change. I think we all know it well, but never want to do it. It's like not wanting to pick up a penny on the ground because people despise the way to win small amounts of money. Always think that only so many bets, to earn back several times the cost of money, is the real ability! The actual fact is, everyone is lost in the movie God of Gamblers. In fact, the risk is directly proportional to the return, you want to win how much, you may lose how much. The first thing you need to do is to get rich overnight, but it is also possible to get rich overnight, why do you want to be the god of gambling? The ordinary heart, ordinary people, ordinary things, to be an unheard of excellent professional gambler, long-term stable win, over time, every day you will have a good mood, wife more love you, children more childish, the sky is more blue, your every day is the best!