The Usage of ‘Lottery Model’ During Trading
Betfair is an online platform as part of the options platform here you can place bets on many of the sports that you love. One of the best places to get profits is by trading and betting on racehorses. It is probably one of the most lucrative categories on Betfair, but there are other avenues where you can earn money as well.
Anyway, most people are actually treating it as gambling in the sense that they employ an “all or nothing” or approach. They either win big or they win nothing. Although this mentality is bad on the surface because you’re attributing your wins purely based on luck, we still invariably use this model.
In fact, it has been said that many people who trade on Betfair actually use the lottery model.
Basically, this model is where you rely purely on your hunch and place as many bets as possible to win big, well, hopefully, at least.
The reason why this model is prevalently used as opposed to the insurance model is that when you win big, it actually feels great. Slow and steady doesn’t necessarily win the race in this regard.
Another reason is that some people are just inherently greedy. We always look for the thrill and the excitement that winning big entails. Although we play the devil’s game and you might not win anything at all, we still fall for it; we’re still suckers for it.
Fortunately, that can be hedged nowadays since Betfair trading platforms have an automated system where you just set certain parameters and the trading program will do all of it themselves.
The reason why this has become the best measure in terms of being addicted to the lottery model is that automating everything takes away your involvement. And whenever you’re not engaged, so does your emotions.
Gambling, as I’ve said, provides that exhilarating experience and that actually equates to an emotion of intense happiness. And, we all know what happens when we make our decisions based on emotions- it tends to be set on a loose ground.
Not Trading When the Price Action is Too Violent
Another way to safeguard your assets is by not trading when the price action is too violent. In other words, if the prices are so erratic in that you cannot make a somewhat near-accurate prediction, it is best that you do not trade at all.
This can also happen during automation as well as no program can account for everything that happens. Fortunately, it is smart enough to not take all of it, but you do have to account for possible mishaps and missteps as well.
So, if you’re constantly treating Betfair as a means of gambling your money away, I highly recommend that you turn to automation instead.
This way, you do not get actively involved in the process and that everything is done based on calculations and certain parameters.
Remember, even though we deem gambling as something that will potentially hurt our financials, we still do it because of the emotion that it can provide.