Topic: Netflix's Money, Explained: E04 Gambling - page 3. (Read 417 times)

To be fair, when I knew forex people, 100% of them were into TA, but mostly they did build up arguments to support what they already believed in (as in, they think USD will go up so they go and build charts to look for confirmation). Not the other way around. So in this sense, they are different from pure gamblers at casinos who have no technical backing (and it's not possible anyway).

But crypto traders? Different. Mostly don't do TA.

Hook is a good term to avoid saying addiction.When a gambler wins he feels the adrenaline for a little time and once he is calm again he goes gambling again because he thinks he will win again.The same when he loses,there is no adrenaline here but is the subconsciousness that says to him "bet again to recover and stop playing" which in reality never happens.Netflix tries to show this in a softer way but the truth is otherwise,also day trading is the same as gambling because the same factors are behind it,adrenaline when you win and the subconsciousness when you lose and try to recover.

I might check it out in the future, next with Altered Carbon and Peaky Blinders. The psychology that they are trying to explain on it though has been a documented case in the academia for a long time now so it doesn't surprise me anymore that it's being discussed.

I used to mentioned about this so called 'gambler's cycle' where a person, regardless of he/she wins in a game, will most likely bet again.

The explanation for this stems from the adrenaline of a person when he/she wins. You get to feel the excitement of winning the bet and you also think that you would win again. In addition, gamblers who lose in a game will most likely bet again since he thinks that he would be able to recover his losses from betting again.

This 'hook' that you stated maybe falls in the explanation above on why most people tend to stay longer at gambling industries. This is a good read and I will heavily consider watching this show. Thanks for this!

Hmm, I'd take that they are quite different in terms of the so-called "hooked" experience though. In gambling, yes I'd reckon it exists, heck, most stuff that concerns itself with the entertainment of its users often has that tactic of letting them be hooked, since only with that would it be considered a success, but for trading? Hmm, I don't really think so. Well, it may be the same term of "hooked", but I think it's of different meanings? Like hooked in gambling means enjoying the game you forget the amount spent, while in trading, you get hooked on the prospect of actually earning money quite easily. In simple terms, I'd describe them as easily fooled.

I'd say that honestly, the only difference that the two have is the factor of luck. Luck in gambling games is dependent on its algorithm, its pseudo randomness, while luck on trading is well, depends on the state of the market. It's like random luck vs calculated luck maybe? Cause if it wasn't calculated, there honestly wouldn't be people living off of trading. s

I recently watched the first 4 episodes of Netflix's "Money, Explained" and one of its episodes discusses the mechanism of how our brains work when gambling. Personally, the "Gambling" episode was an eye-opener for me as I have gained a lot of interesting facts and different collective opinions which might give us a different point of view.

The Gist of the episode:

The fourth episode is all about gambling, its history, the psychology behind it, the process of getting hooked into gambling as well the most alarming issue that I have heard where it says that day trading is just pure gambling.

One thing that we are all familiar with is the psychology that the gambling industry has evaluated to keep their customer to gamble by using the so-called "hooks". These hooks are something that will make people sit for long hours while making their gambling experience more enjoyable and enticing to make a lot of money. In effect, if these people have been "hooked", they will now fall under a mental state^[1] of total focus called the "The Zone". This means that the long hours of keeping people into gambling, the more money they can take out of other people's pockets.

These psychology tactics have also led other trading and investing company to use them to keep people unaware of the risk they are taking while being spammed with notifications of the current market sentiment, and an opportunity to get a free stock. Moreover, this episode also emphasizes that day trading is equivalent to gambling.

My take:

I am aware that the argument about day trading as gambling or not has been discussed often before and it could be tiring to prove a particular point due to its subjective nature. One could say that day trading is a combination of little to non T. A and pure luck, others would say that day trading could never equate to gambling since the ability to read charts and proper risk management would decrease the percentage of getting rekt.

It will just result in a never-ending comparison.

References:
[1] https://www.peaksports.com/sports-psychology-blog/mindsets-to-help-athletes-perform-in-the-zone/