Would Professional Gamblers Make Good Stock Brokers?
While it may seem very strange, you would be surprised at the similarities between professional gamblers taking a punt on the next gambling event, and stock brokers who are shifting around million of dollars a day. So would a professional gambler make a good stock broker?
Like any employment or hobby, you need to enjoy what you are doing to get the most out of it, but check out these similarities between gamblers (predominantly those who gamble in-play) and brokers :-
- Speed of thought. Every gambler and every broker needs to be able to react quickly to ever changing situations. Sometimes they will need to admit defeat, take a loss and call it a day, and other days they will be waving their winnings in the air!
- Mis-pricing. This is an interesting similarity between gamblers and brokers, with both looking for the next “dead cert”, but also looking for situations where prices are wrong. By either placing bets or laying bets (buying or selling shares) it is possible to make a quick turn on a pricing anomaly.
- Research. While there are situations where you can run with your gut feelings, the majority of good bets and good investments need researched. The more research you do, the more viable or unviable the transaction will become. Remember those gamblers who noticed that each European Golf tournament had at least one hole in one? They stung the bookies for thousands of dollars because the bookies did not research the bet.
- Following the “hot money”. Many gamblers and stock brokers make very good money by following the “hot money”, the informed punters who maybe have a little bit of inside knowledge.
These are just a few insights into the comparisons between a professional gambler and a stock broker and while it may seem a little odd, they are very similar creatures - except maybe their pay packets!