Be a Sharp Gambler

The gambling world is full of people who just throw down hard earned money

without thinking about what they are doing. Are you one of those people who will

just go with the flow? If so, you are most likely a losing gambler or you are not

winning as much money as you could be. There are three main factors that make up

every successful gambler: money management, value and knowledge. This article

will take a look at all these of these areas and help you become a sharp gambler.

Money Management

It’s amazing how many people gamble and don’t think, for even one second, about

money management. You wouldn’t go on a trip without thinking about what you

want to do right? Then why gamble without a goal? When you go on a trip, is your

goal to simply go on a trip? Of course it’s not. You at least decide on a destination,

time of stay and so forth.

Before you gamble, you should have some goals in mind. Here’s a quick list of a

couple goals you want to define.

1. What is your total bankroll for the gambling session?

2. If I am ahead $X, I will leave.

3. If I lose X% of my bankroll, I will leave or I will leave once my bankroll is gone.

4. I will devote most of my time to playing [ insert game ].

5. While playing [ insert game ], my average bet will be around $x.

Defining these five goals will help you keep organized and focused.

Value

The sharp gambler stay way from bets that are for suckers. He or she is only

concerned with getting good value. Here’s a list of key bets and activities to stay

away from.

1. Slot Machines – The payback percentage is poor.

2. Roulette – Huge house advantage.

3. Proposition bets in Craps.

4. Parlay cards in sports betting that contain a large amount of selections.

5. The insurance bet in Blackjack.

6. The tie bet in Baccarat.

7. Caribbean Stud Poker, which has a large house advantage.

8. Bingo

There’s no law against playing the above items from time to time, but you have to

do it in moderation and not make these items part of your main betting activities.

Knowledge

This is one of those factors that separate the long-term winning gamblers from the

consistently losing gamblers. If you are going to wager on something, you should

know all you can about it. Study the game, learn the tricks and understand

everything about it. By being knowledgeable in the game, you will know how to

maximize your wagers and your time.

Pick a game you want to play and follow this guide to become a guru.

1. First, research the game by typing in the name at your local search engine.

Look for how-to-play articles, tips and strategy. You will find many free resources

out there.

2. Find an online casino that offers play money games and go practice what you

have learned. If are learning about sports betting or horse racing, find a sports book

to get odds from and play bet.

3. Visit your bookstore and look for books on the subject. Sit down at the store

and read a little.

Keep reading and searching for the area(s) you like and soon you will become a very

sharp player. Knowledge is power, especially in the gambling world.

By improving yourself in these three areas, you will have a great possibility of

winning more consistently and you will have more fun because you are organized,

focused and education.

Are You an Investor, a Speculator or a Gambler?

What exactly is an Investor, a Speculator or a Gambler in the

context of the Stock Exchange Market or for that matter, any markets?

The Public as well as the Media have often loosely and interchangeably

used these three terms. Comparisons are often made between their activities,

but the terms are never explicitly defined.

You might ask if there is a need to be distinct on these terms.

Well, there is definitely such a need simply because, if you want to profit

from the market consistently, it is crucial to first, know who you are and how

you are going to participate in the market. In fact, the mindset and methods

employed by an investor, speculator or gambler differs extensively and greatly

affect the profitability of participating in the market. How perilous it is

to venture into the markets blindly!

The Public often called themselves Investors, perhaps, influenced

by the Media. But how many of them are really Investors or even Speculators.

Think about it, many of the self- acclaim Investors are actually habitual Gamblers,

betting on the market on the slightest rumours, insider news, company news or

fluctuations, hoping to get rich quick by chance. This is not a debate on whether

gambling is good or bad, but if you’re going to gamble; don’t you think you

have a better chance at the Casino, which is there for this purpose?

So, what are the differences between an Investor, Speculator and

Gambler? In order to differentiate between them, we should start by defining

them. If you’re sufficiently motivated, I encourage you to try to define the

terms ‘speculating’, ‘gambling’ and ‘investing’ before you continue reading

this article… you may surprise yourself.

Consider the following.

Investor

An investor is an individual whose primary concerns in the purchase

of a security are regular dividend income, safety of the original investment,

and if possible, capital appreciation.

A person whose principal concern in the purchase of a security

is the minimizing of risk, compared to the speculator who is prepared to accept

calculated risk in the hope of making better-than-average profits, or the “gambler”

who is prepared to take even greater risks.

In 1934, Graham and David Dodd addressed the issue and offered

a definition of “investment” in their classic text book Security Analysis

“An investment operation is one which, upon thorough analysis

promises safety of principal and an adequate return.

Operations not meeting these requirements are speculative.”

Graham and Dodd’s Security Analysis (original 1934 edition)

Speculator

Speculation is the buying, holding, and selling of stocks, commodities, futures,

currencies, collectibles, real estate, or any valuable thing to profit from

fluctuations in its price as opposed to buying it for use or for income – dividends,

rent etc.

A speculator is one who is prepared to accept calculated risks in the marketplace

for attractive potential returns.

Speculation: The activity of forecasting the psychology of the market.

Speculative motive: The object of securing profit from knowing better

than the market what the future will bring forth.

John Maynard Keynes in The General Theory of Employment, Interest, and Money

Gambler

Gambling (or betting) is any behaviour involving the risk of money or valuables

on the outcome of a game, contest, or other event in which the outcome of that

activity is partially or totally dependent upon chance or on one’s ability to

do something.

“A gamble is the assumption of risk for no purpose but enjoyment of the

risk itself, whereas speculation is undertaken in spite of the risk involved

because one perceives a favorable risk-return trade-off. To turn a gamble into

a speculative prospect requires an adequate risk premium for compensation to

risk-averse investors for the risks that they bear.”

– Investments by Zvi Bodie, Alex Kane, and Alan J. Marcus

Regardless of how you define the terms, it is likely to be a worthwhile activity

to estimate your expected returns on both an absolute basis as well as relative

to an appropriate benchmark. And if you find yourself enjoying the activity

of investing or if you find yourself addicted to the speed and excitement of

the trading game, perhaps you should seriously consider whether you’ve crossed

the line between investing and speculation, or worse yet, maybe you are really

gambling with your money.