Financial Sector is Nothing but Gambling by Professionals in Action

The Devil’s Dictionary written by Ambrose Bierce, an American journalist in 1906 already stated that most businesses are a gamble. Other phrases by Aaron Brown indicates that people in industry wear a poker fact to Wall Street. No matter how uncomfortable it makes most individuals in the financial sector, gambling remains at the heart of institutions and economic ideas.

Confidence and Bluffing

Financial games and gambling are incredibly alike, and most say the skills needed in the sector are identical to that required by a gambler. The skills that make a trader successful includes decision-making under enormous pressure, a relentless approach is needed for risk, and you need a well-trained and disciplined memory. It is identical to that of master poker players. A professional card player by the name of Brandon Adams lectures behavioural finance to university students at Harvard, agrees that professional card players and traders have a lot in common.

The two main elements needed in professional gambling is bluffing and bullying, and in wall street, those are the two most required by traders. Phishing for Phools is a book written by Robert Shiller in which he challenges the fundamentals and efficiency of those claiming that you could never beat the market. Used by sellers, it exploits the ignorance and psychological weaknesses of buyers; it is a tool used to fool naïve investors.

Confidence Has an Extremely Dangerous Partner, Overconfidence

Shiller proposed in the book called Animal Spirits that five psychological factors are critical in confidence or the lack of confidence. While confidence remains essential in raising billions, it is also the tool that enables those using it to fool inexperienced investors. Tipsters in gambling and financial advisors understand the importance of confidence and that it is critical in gaining your opponents or your client’s trust.

Tipsters, Advisors & Trust

Paul Seabright, a professor in economics, believes that the need for trust evolved even further in the modern economy. It advanced to a point where individuals hand over large sums of cash to strangers, even though they would not dream of handing it over to their neighbours. The reason for this action is that the professionals acquired power, prestige and lots of wealth through possession the expertise and knowledge in selling. Some, use the pretence of experience and still the client doesn’t question the so-called professional.

What is worse is that they charge you a management fee to have access to your cash to bet with it. If there is a profit, they also claim a percentage to that, and if their gamble fails, you lose. Everyone screams about the morality in gambling and placing your money on football or horses. Once they understand what they are buying from the professionals, they’ll realize that their money is used to gamble on shares and stocks. It is a gamble, and the financial gamble is as dangerous, if not more when you take into consideration the number of banking scandals and financial scams.