The term Gambler, as it has through most of history and even in contemporary society today, raises connotations of loser and irresponsibility and people that lurk in its shadowy confines are destined to bear a stigma as such. As we would like to explain a “Punter Seldom Gambles”. What’s the difference? Plenty!
Although there is a presence of risk in both cases, punting, not gambling, offers by far the greater opportunity of returns. Punting is an investment driven by knowledge, not chance, as is the poorer relation, gambling. Punting relies on a series of related events in which the investor can predict the outcome of an event with degrees of confidence.
No such assertions can be made in games of pure chance, such as Lotto, Scratchies etc. that has a much higher risk factor and losing streaks are inevitable.
In general, gamblers find it hard to process the conditions of risk when enduring a losing streak. We all live with various forms of risk in our lives on a daily basis. Risk is one of the prime catalysts that drives western society.
For punters, the ability to identify risk then manage it, is critical for their survival.
There are many instruments of risk management, such as stop loss and exit strategies, specifically designed to stop extended losing streaks from spiralling out of control. But many investors that have these tools fail to implement them because of irrational thinking patterns when experiencing a losing sequence. Our trading program with our Professional Package has one built in to the program, to manage the stop loss and exit strategy.
This is where the darker side of the equation asserts itself. “Just one more roll of the dice and I will get all my money back” is a formula for huge losses by any gambler. No one is exempt. It is a common pattern gamblers take when losing, having the tendency to bet more and more on longer odds in a desperate attempt to get back their losses.
Consider then a punter doing the form on the morning of any race day we probably all think rationally. But if things don’t run the way we expected there seems to be a considerable change for many in the thought patterns. If the first race was a Maiden that offers 7/1 the field most punters would not touch it with a barge poll. However, if it was the last race on the same card and punters were $500 down, then they will wager on it to get out, and in the process do what we would expect a gambler to do. The fact there would more suitable races to wager on over the next few days doesn’t seem to be a factor: one, because as gamblers you are not thinking straight, and, two you have not looked ahead to see what is coming up in the near future.
What does distress and discomfort do to the punting logic?
When we are put in situations that cause us distress and discomfort, the mind works in such a manner, as to want to rectify the situation as soon as possible. It is part of the body’s defence systems. In many cases the quick fix corrective measures the mind wants to implement can override rational thinking. Gamblers yield to the anxiety of the moment to recoup loses rather than waiting for more suitable events. The current environment in which gamblers maybe involved also has a distinct bearing on thought patterns. Many on winning streaks think they are bullet proof, while a skilled punter will close up shop if experiencing a protracted losing streak. We all have these thought patterns, even people in a position of Knowledge, such as ours.
So remember, gambling plays on at least two human universals; the urge to get something for nothing and the difficulty of giving up the dream, no matter how high the stakes or the odds against it. As bad as gamblers are with money, they are even worse with statistics.
Rational thinking is the only way to be successful. Having a plan, money management, patience, form and forward thinking will reap any punter great rewards. Punting is hard work that takes just about as much time as the average job.
Our mission at RaceBiz is to help punters understand how to punt with confidence in our selections and be rewarded with good profits. Why don’t you get in touch with us now on 1300 RACEBIZ, or check out our Membership Options?
Happy punting from the RaceBiz Team.