Among successful pro gamblers and high-profile investors, one thing is common and it isn’t luck. While luck can expedite the process significantly, gamblers and investors always seek to minimize the risks they take to ensure that there is a reward for their efforts. It is a safe bet to assume then, that both disciplines can find gold mines’ worth of lessons by learning each other’s trade extensively. However, acquiring success in both activities do require a lot of preparation, patience, and a bit of creativity. It may be difficult, but the rewards are well worth it.
Sustaining the bankroll
The measure of success in both casino gambling and hedge fund investments is longevity. It is a marathon, not a race, and the quote will become more relevant as a bettor or investor when thinking about the next steps. Learning how to keep the bankroll afloat is at the heart of this longevity. So long as the bankroll can easily flow in and out of the bankroll, the more that calculated bets and investments will increase its potential values.
At its very core, betting and investing strategies should abide by this rule as closely as possible: never risk too much on any single wager. Just as hedge funds carefully allocate capital across investments, smart bettors follow strict position-sizing rules. Exceptions could be considered but these opportunities seem very rare. Regardless, a bet on a digital casino or mobile app like betway should be treated as a potential investment most of the time, because it absolutely should be. The same goes for investments. After all, a successful investment means that profit should materialize.
Discipline is key
Without discipline for both investing and betting, longevity in those particular careers will lose integrity eventually and fast! Gamblers and investors deal with risk a lot and when the risks are not too obvious, some mathematical equations and limitations are thrown aside in favor of the promise of emotional gratification. And when a potential reward prompts a bettor or an investor to forego limitations, it just amplifies the risk!
Implementing hard loss limits—such as stopping after losing certain percentages in a day or in a week—creates a necessary barrier against destructive “chasing” behavior. Similarly, setting win targets prevents the common pitfall of giving back profits during hot streaks. These rules force the type of disciplined decision-making that separates professionals from amateurs.
Diversify
It may sound like a cliche now but investments and bets on websites like betway are much better when diversified. The strategy remains popular in both casino gambling and hedge fund investing because it stratifies the risks. Concentrating resources into a singular wager or investment venture for that matter could lead to catastrophic results if something goes wrong. At least, in diversification, there are safety nets to fall to when one venture or wager goes awry. It also diversfies the yields and that could mean more profits!
The difference between gambling and strategic betting lies in the approach to risk. By adopting hedge fund principles. In the end, the markets—whether financial or betting—reward not those who take the most risk, but those who manage it best.
