Gambling like in 918kiss is described more of as staking something like cash on contingency. On the other hand, when trading is taken into consideration, gambling takes a whole different dynamic. There are actually a lot of traders who are gambling without actually knowing it. As we proceed on this short post, we will be looking at the untold methods to which gambling is creeping into trading practices and also, the stimulus that might be driving a person to trade and potentially, gamble in the first place.
Tendencies for Hidden Gambling
It is fairly common for a person to believe that they do not have any gambling tendencies and none of them will either admit happily to having them. Yet, uncovering the motives in every action we take helps us in changing the way we are making decisions now and tomorrow.
Social Proofing
There are some who might not even have interests in investing or trading in financial markets but, social pressures induce them to invest or trade anyway. This is more common when there are large group of people who are sharing the same opinion about investing in financial markets. People are feeling the pressure that they have to conform in their social circle, so they won’t be left out.
Making few trades to appease these social forces aren’t automatically considered gambling if people know what they’re doing. However, entering into the financial market and involving themselves in any financial transactions without having solid understanding of the investment they are making is considered gambling. These people are lacking of knowledge in an effort to exert control over their choices and probability.
When someone is involved in financial markets, there’s always a learning curve to be encountered which will be based on social proofing discussion. This may not or may be true as per the person themselves. How someone approaches the financial market determines whether he/she would be succeed in trading or stay to be a perpetual gambler.
Trading induced by Excitement
Even after losing a trade, it could stir a sense of satisfaction or power and strong emotions. This is true particularly when it is linked to social proofing. If everyone in the individual’s circle loses money in the financial market, then losing money on the trade will let that person be able to join the conversation and share their own inputs.
When someone is trading brought by social proofing reasons or excitement, it is very likely that they’re trading in gambling style instead of a tested and methodical way, which can be very dangerous in the long run.
