What does “the real business of gambling mean?” Professional gamblers take gambling and sports betting very seriously. It is their career. They are professionals, much like a professional landscape architect or a teacher. They study the game and how to read betting lines, study the mannerisms of their opponents, and remember the bets placed right from the beginning of the game. They are familiar with their opponent’s career, how they play, and when they bluff. Just as a financial investor is familiar with the business of buying and selling stock in a company, those who gamble for a living know when to hold ’em and when to fold ’em. They have studied the game for many years in order to win. Gambling is their business.
The Difference Between Gambling and Investing
When all is said and done, an investor owns some capital in a corporation, unlike the person who gambles. The odds for the investor to make a profit on their investment are better than for someone who gambles. Of course, the investor goes through dry spells, especially during a recession, but this person can expect a boost in the economy sooner or later.
Unlike the gambler, the investor has control over his investment. He can avoid risks, unlike the gambler. Stock market investments appreciate, unlike the gambler’s investments. A gambler is tempted to put more money in the pot if their gut tells them they have a winning hand, while an investor isn’t faced with this temptation. A professional bettor does not know if or when the tables are going to turn against them, while a professional investor can minimize their risks. The gambler is dependent on the hand he is dealt.
Gambling is a Guessing Game
Even though the professional gambler has studied the game, he still has little control over the outcome. No matter what game the gambler plays, the future is still unknown. No matter how long or how hard they study, disaster could be looming ahead. Their favorite team’s quarterback or linebacker could be seriously injured during the game, or a favorite horse may suffer a devastating injury, causing the gambler to lose his bet. This person has already placed his bet and there is nothing he can do about it.
An investor can seek the help of a professional financial advisor if he isn’t familiar with investing. When the stock market looks risky he will advise the investor to sell or trade, while a gambler, even though he may have picked the brain of an old-time professional gambler, may still be wrong about his assumptions. His risks are much higher than that of an investor.
Gambling Involves Chance
A gambler’s chance of winning is nowhere near that of a financial investor. The odds of winning a jackpot on a slot machine are very slim. In a game of Texas hold ’em, the odds of winning are hardly ever more than 7%. In horse races, a favorite horse may win 17 to 20% of the time but with low payouts. The chance of winning the lottery is one in 14 million.
Even investing in a class to learn about investing is a wise investment. Knowing when to buy, trade, or sell stocks increases the chance of winning. Investing in a company that has shown growth over a number of years may not assure an investor of a solid win, but chances are, the risks are far better than that of someone who gambles. When a business’s earnings increase, the prices of their stocks will also increase.
What is an Angel Investor?
An angel investor is someone who invests in the start-up of a business. A traditional stock market investor will expect a 25% return on their investment, while an angel investor typically looks for a 30 to 60% return on their investment. Of course, the business could fall flat on its face, but this is where research comes into play.
The angel investor wants to know everything they can about the business, its owner, and the outlook of the economy in the city or town where it is located. An angel investor has some equity in the business, otherwise, he would not invest in it at all. He has invested in the start-up of a business and he is now a business partner. He has some control over how the business is run. If it is sold, he gets a portion of its profits. Yes, it can be risky, but that is why it is important to hire a reputable investment attorney who will draw up a contract with contingencies that both parties can abide by.
Investing in Bitcoins
If you’re not familiar with bitcoins then you may not want to invest in them. At least not until you’ve done your research. They are considered by the pros as a volatile investment. Bitcoins are known as digital assets or cryptocurrencies. As with any type of investment, there are always pros and cons involved.
Be Cautious If You Are Investing in Bitcoins: An investor of bitcoins should know how much money they should invest, where to buy them, where to keep them, and how to manage them. Unlike the more traditional stocks such as mutual funds, IRA’s, and stock market trades, bitcoins are not federally insured. Because bitcoin investing is done online, not all internet connections are safe. There is always the chance of fraudulent activity on the internet. It is also wise to know what fees are charged when you are buying bitcoins. Not all companies charge fees for buying bitcoins, but there are those that do.
The Upside of Investing in Bitcoins: Bitcoins, as an investment for the beginner, are easy to liquidate, so if you’re unsure of yourself as an investor and you have made a profit on what you have purchased, you can easily sell them. Right now the outlook is good for someone who has owned bitcoins for a long time. The current market has skyrocketed, so it may be worth it to purchase them and let them sit, as long as the outlook is favorable, although the professional bitcoin investors do advise beginners to invest only what they can afford.
Addictions to Gambling vs. Addictions to Investing
A gambling addiction can have a stronghold over people who love to play games, whether they are online casinos or at a brick-and-mortar casino. Whether you love to play the slot machines, craps, roulette, poker, or even if you just have to purchase your weekly lottery tickets or scratch off tickets, you may become addicted and lose a lot of money. It’s difficult to say no when you are addicted to gambling. Investors who are addicted have an advantage over those who are addicted to gambling, however. Their investment will be federally insured, they will also have some capital in their investments. If the current market is in a slump, they can be quite sure that it will pick back up again over time. Not only that but they can easily trade or sell their stocks with only a minimal risk of loss.
An investor who just has to invest may not always be safe though. His investments may be at risk, especially if he has invested in a business without knowing what type of business he is investing in. It is wise to seek professional advice before investing in any type of business. Read the fine print of a business contract, check out the current economy in the area where the business is located, and know the business owner’s financial history before investing in the start-up of a business. How much capital does the owner have in the business? Do they have any other type of financing from a bank or finance company? Is your new business partner willing to stand up to what is stated in the contingencies of the contract? Is he a reputable businessman? Always do your research before signing on the dotted line.
Conclusion of the Real Business of Gambling
Professionals gamblers and investors alike would be wise to learn the ropes before they jump in. Knowledgeable gamblers and investors have more of a chance to win if they know the ins and outs of their profession. A gambler can learn to read an opponent’s mannerisms if they have become acquainted with this person beforehand. A professional gambler’s personal and professional profile is available on the internet. While the risks are high, the chances of winning increase with experience and know-how.
An investor has more chances of winning if he or she has some knowledge of buying, trading, and selling stocks. This person should learn the ropes too. He can, however, hire a financial advisor to do the trading for him. A financial advisor is very skillful in investing but the advice isn’t free. With so much information available online, it is not too hard to learn about trading stocks, buying bitcoins, or being an angel investor if you are willing to put in the time and the work before taking the final step.