Topic: Loss Aversion: A Critical Factor for Responsible Gambling. - page 4. (Read 1540 times)

On a norm you can't detects and factor out when you gets addicted to gambling and to that which you constantly does at your own will time or spare time, that's why gambling and not setting limits to gamble is actually very risky and a bad habit to show easy way to addictions. And again anyone who are able to control greed can actually reduced the rate at which addiction shows in them.

The reason that some gamblers find it difficult to let go of losses is because of the mentality of having their source of living from it and therefore they must not lose. You may be lucky having this thought of source of income but majority of gamblers who think this way find themselves going back to deposit on their account because they refuse to let go. One thing that I understand about losing in gambling is if you decide not to stop while losing then you keep losing as your analysis would keep being wrong because the mindset is that of revenge which is wrong mentality.

Many have recorded losses in all these online gambling applications but should stay out of it. Because you can't recover that money loss if you want, you should forget everything. Already know myself how gambling is made, how much i run into losses. But even knowing that we gamble again and again because there lies our source of income and entertainment. We only feel the right way when we lose gambling and feel that anger again and again. I myself am addicted to gambling but i don't hurt anyone because i feel profit and loss.

Whether what you will get from gambling, you may change your behavior easily and that is depends on how you react. If you know that you don't have to keep playing gambling when you lose the money in gambling, you can prevents the changing of your behavior because that can affect to your emotional. Most people will not want to get the lose in gambling but they must understand that in gambling, they will only have two option whether win or lose.

They don't have to change their behavior if they win or lose but still remember that they must still control themselves and know what they need to do based on the outcome that they get. They need to think clearly about when they lose their money, they must stop gambling immediately before their losses becomes big. Many people tends to continue their gambling activity when they lose without think that they can lose more and more. So that is why we must manage our emotion and our self control so we don't have to get the big lose.

Taking a break in gambling and adding the spreadsheets of how much money was spent on the casino is a catharsis experiment. It can really help some of the addicted gamblers to finally get the control back in their hands and stop gambling.

If the addiction is a problem, further gambling can be disastrous for their financial situation. But if they can control it and are disciplined about the control over addiction, they can turn the tables.

There is the youtuber called Hypalinx who records his gambling sessions and at times vlogs about his total spending honesty, it is not a nice view at all.

Many people do not do it for the money. You can see someone that is very rich but like to gamble. The funniest thing would be that he is using a very small amount for the gambling. From the poor to the rich people, you will some people in all the pyramidal stage that are gambling.

Someone that also like the money making part but only using a very small amount to gamble is still not doing it for the money. This is the best approach to gamble. Let us assume you have $500 but use use just $5 to gamble and you discipline yourself not to go more than $5 to $10 while you keep $490 to $495 untouched. This is how I gamble if percentage is used but I still noticed that I do not like to lose the small amount of money that I use to gamble. That means it is like I gamble for money but I know deep down in me that I do not gamble for money.

People are different in life. There are many people that do not gamble for making money.

Not only the behavior when losing depends on individual even the behavior when we win too depends solely on individual, there are those that when they lose they don't even react to it, I meant it doesn't influence their personal behavior and even when they win too, but when it comes to some people at every point in time they win or loss their whole personality changes the narrative of their behavior irrespective of how much being lost or win even though no one gambles to lose but it is a fact that can not be averted, gambling is a two way thing either win or loss.

Interesting what the OP raises, which is new to me. But I am not surprised, this is not exclusive to casinos, even supermarkets have studied in detail the psychology of the consumer and arrange their products in a certain way so that the customer spends more. In any case, these “tricks” are not determinant, and although they statistically increase revenue, it is always in our hand not to fall into them. For example, I go to the supermarket with a list of what I want to buy and very rarely buy something that is not on it, and as for casinos I almost never pay attention to the offers because I know that in most cases they end up encouraging you to bet more.

Many people forget about the limits that they should apply in their behavior in gambling, especially with beginners who usually only think about winning, usually they will not see the risk side which is actually greater. Actually, before gambling, they should have thought about setting limits in gambling, such as from the funds that will be allocated to gambling that are set in amount, and not extending the gambling session when it has ended in defeat. People who are irresponsible with the gambling they do are those who will experience the negative impacts of gambling, addiction and destruction of life will happen sooner or later. Moreover, if they think that they will be able to win in gambling, it will make them trapped in gambling and it is difficult to get out, and when it is like this, it is usually difficult to be aware so they will not easily stop even though they have lost a lot of money.

Yes absolutely. They really have it down to a science. And why wouldn’t casinos try to exploit in every subtle way that they can it’s good for business, a necessary evil almost. I guess buyers beware haha gambling is risky business and high on emotions which is the worst combinations for financial decision making.

No matter how disciplined you are, if you are engaging yourself in negative EV (expected value) games, you will lose it all eventually. You being more disciplined only delays the process slightly. Discipline only gives results when combined with profitable (positive EV) endeavors; otherwise, you will get delusional and slowly spiral into a never-ending dark pit of loss, which eventually triggers guilt, stress, and isolation. 


You are right but only few human endeavors are there which do not have money as a focal point. Every thing which offers a shortcut to fortune (no matter how risky/illegal) will always be more appealing and gambling is providing similar path to riches.

 
That saying has some merit but only problem is no matter how great philosophical value a saying carries, it will only add to loss if you are engaging yourself in negative EV endeavors.
Apply that to positive EV endeavors and you will see results for sure.


 
You need to protect capital in any financial pursuit, but you will surely try failing every time only on gambling 

And if you have gambled in past you know very well this inevitable (lose everything chasing loses). Gambling must be considered a fun activity rather then a shortcut to financial freedom.

I can't resist the temptation of bolding out the words in your post. Thanks a lot! It means a lot to me, especially when it comes from a reputed member like you.
You are right on the point about casinos exploiting psychological tendencies to remain in profits, but at the same time, IMO, individuals also do not need to be just mindless moneybags for casinos.

Good perspective on gambling. If you have that 'pay to be able to gamble' approach in back of your mind, you know that you are just paying for fun and thrill not make substantial financial gains. Well said!

Just like drugs .

Nice advice. It would be better if you gambled with friends. Not only would it be more fun and a more social experience, but it would also help you to remain in control as individuals behave more responsibly in groups.

Thanks for finding it worthy of your focus and appreciation. I am much obliged.

Indeed it is. What is more interesting to me is that loss aversion also remains relevant when we are winning. We tend to book wins prematurely. Like cashing out winning bets early, taking insurance in poker, taking profits early in trading, etc. Casinos know this and exploit gamblers both ways.

 

Wow, this is very interesting in the article you posted :

 "But did you know that we feel the pain from losses about twice as much as we feel the joy of equivalent gains?

Loss Aversion

We are roughly 2.5 times more sensitive to losses than we are to gains of similar size. A message framed as a potential loss might therefore be more persuasive.

Think about it. The emotion you feel when you lose a $50 bet is a lot stronger than the joy of finding $50."

I never would have thought of this. And the fact that the emotion of losing a bet of equal value is much stronger than the joy of winning it to me is just so completely wild! That just goes to show you how much emotion comes into play in our decision making & probably why its so devastating when people lose so much.

Well the feeling of losses cannot be underestimated and emphasized because it's a factor that can't be rooted out of gambling so whearas in cause of gambling you ought to win and lose as well but necessarily it depends on how you position yourself in it.cayse if this feelings of losses can be handled I don't think there would be results of addiction,this is why it's best to take up some break in gambling.

True, anyone has to pay to be able to gamble, meaning this is a game that is not free while on the other hand winning is nothing more than a chance and there is absolutely no guarantee to always be able to win every time you play, so I agree with you that in gambling we must prioritize money management by implementing various plans that lead to prevention.

What you said is really based on a fact considering how difficult it is to stay okay when someone is already trapped in a high loss and that is what makes gamblers always take various aggressive actions because of the desire to return the amount of defeat they have experienced before and that is also the reason why gambling must be done with great care.

This was a very informative post especially for those who may care to be concerned with it, because I have seen that the casino is in for a long term business as people just keep falling for that psychology even after all the time they have spent gambling and loosing money over and over again and not recognizing they have gradually become addicted, but for me this feels like an awareness call and if only they will understand it in that manner probably they will gamble better.

To gamble, you need capital so protecting the raw material (the capital) is the most important aspect of gambling. So don't be surprised when people pay more attention at preventing losses than they do to winning. The only time it becomes a problem is when the gambler chase losses which is continuing to play with increased capital in order to recover losses. This does not always end up well because at that point, one would have suspended the ability for critical thinking and wise decision, so making informed selection and decision becomes impossible consequently, the losses will not stop until the fortune have been lost. 

Gambling has a spirit behind it, and that spirit is what drives most gamblers who are not able to subdue and conquer it.
I am a gambler myself and understand perfectly what it like to chase after loses, a couple of times I've gambled and lost my money, a sudden feeling comes upon me, creating in me a very strong desire to deposit more money and continue gambling, this strong desire makes one believe that they are very close to winning the jackpot, and just then, saying like "quitters never win and winners never quit" floods the mind of the gambler, and if the gambler is not able to over this temptation, he or she will likely find him or her self depositing more money to chase after that which is lost...

It rakes good self discipline and strong mental strength and will to not always fall for such to be honest wit you, so most of the time, I really do not blame gambler who end up in such situations.

Money would really be that the main reason on why gambling would really be that still having that kind of relevance and demand due to that kind of aspect on which this is where people would really be that always loving. It will really be always like this and if there were no demand then we would really be seeing that gambling industry would really be just that keeps on booming or increasing in terms of revenue and this is really that something which is really that obvious or really that being written on paper or simply could be seen on stats. Responsible gambling is actually really just that basing up on a certain individual into this kind of aspect on which it will really be always depending on how they would really be treating up because there's no way that you could be able to think up well on what it is and on how you should really be treating it up.
People do messed up their lives due to that wrong approach or treatment towards gambling on which they do really believing that this could really be that able to save them up into their poor situation or
really just that thinking that they could be making out some huge changes about getting rich with it and make constant money on which this is really that a very wrong approach.
Loss or winning condition will really be that triggering out that kind of desperation on which it will really be leading out into disaster if you dont put up yourself on such right thinking or approach into it.
Gamble for fun then you should really be just that fine.

Chasing losses as a way of loss aversion is indeed a psychological trap that a lot of gamblers have put themselves in. This is a very easy way to lose your entire bankroll, even though there's a slim chance of recovering what you have lost its still to risky to try. The moment you get trapped in that cycle of trying to recover what you lost by gambling more you will continue losing. You must learn to inculcate self discipline and control. If you think about it for a second you would realize how dumb it is, how can you lose money in gambling and try to make back that money by gambling more it's absolutely ridiculous but to a gambler it's instinctical.