Many have drawn a parallel between the world of financiering and the gambling industry. For good reason too, as both involve planning and dealing with money, in the hopes of acquiring more of it. It would certainly be wrong to say that there isn’t at least a point where the two converge.
While it isn’t quite fair to say that gambling and wealth management are the exact same thing, there are certainly a few parallels we can draw. In fact, professional gamblers and finance managers share quite a few traits in common.
With the drastic rise of online gambling, we thought it would be interesting to explore the similarities between the two. Of course, the iGaming industry is diverse, offering everything from no wagering casinos, to some pretty high-stakes options. In this article, we are focusing on pro gamblers, and the parallels between them and top tier wealth managers.
Planning for Money
Planning how to spend and earn money is the job description of a professional wealth manager. More to the point, anyone who deals with money, must, at least, know the basics of managing it. Considering professional gamblers work with money all the time, it isn’t a surprise that some money management techniques have been incorporated in the industry.
It is important to understand the difference between managing personal funds, and spending countless hours of the night, coming up with techniques for making the most out of one’s cash. That is the work that professional gamblers put in, in order to get the most bang for their buck. But, how does money management work in gambling?
Well, gamblers first set aside a bankroll; that is an amount of cash that they know they can afford to lose. They then come up with a betting strategy; meaning they plan for when the best time to make a high wager is, as opposed to the worst time. Indeed, this sounds a lot like wealth managers, planning out investments, and thinking about when the best time to back a business is.
The Internet Enhances Both
The internet has changed a lot about many aspects of industry. Two markets that have been hit with positive change in particular are the gambling and finance markets. Certainly, most are already familiar with online casinos, but, many may not know that there are plenty of online investment platforms, that can help new traders truly get started.
Internet casinos are, at this point, a staple of the entertainment market. They allow fans to better learn about the gambling industry, explore new games, and understand the basics of responsible wagering. On top of that, iGaming libraries are constantly expanding, adding new options for players who are getting a bit sick of the same old games.
The same principle applies to online investment sites. Whether you are interested in trading stocks, crypto, or anything in between, or perhaps you’d like to invest in the US real estate market, trading platforms on the internet have you covered. The best part about it is that many of them come with tutorials, that allow new customers to get the hang of the task, without much headache.
Similarities Between Gamblers and Money Managers
There are also certain traits that a good gambler has, but would also greatly serve a money manager. One of the first things that comes to mind is, of course, the idea of keeping a cool head. Everyone has heard the phrase “cool heads will prevail.” That is absolutely true. In a poker game, for example, a player who shows signs of nervousness or stress will instantly be pegged as the weak link.
A cool head is also necessary when managing money. What we mean is that, a good money manager does not stress about what could happen, but rather looks at the data and evidence clearly, and then creates a plan for the future based on said numbers. Of course, nobody knows what the future holds, and anything could go wrong. However, if we always thought like that, nobody would ever get anything done.
It is worth noting that many claim that mathematics is absolutely necessary if you would like to be good at gambling and money management. The truth is that, while a general understanding of mathematics is helpful, there are plenty of money managers (and professional gamblers) who are not much of mathematicians.
