18 May Professional Gamblers
Last month, I was talking to one of my students and we were both commenting on the fact that people who gamble on sports, horse racing or even play online poker for a living were not much different from traders. In fact, I have a good friend who bets on sporting events such as football, basketball and hockey, and makes a very good living at it. I had an opportunity to watch how he makes money and it’s astonishing how similar it is to trading. He had software loaded onto his multi monitors computer setup that was used to analyze trends of a particular team in a certain sport (kinda like a stock chart). He had news feeds of which players were injured and wouldn’t be playing that game (like business news feeds). He showed me how you can bet on the result of a certain period in the game rather than the whole game and the point spreads can go UP and DOWN like a stock price. Pretty interesting! The biggest similarity that I noticed is that professional gamblers approach their job like a business, just the same way that professional traders trade the markets for a living. Their biggest focus? Managing risk.