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Can you learn anything from casino games if you’re someone who plays the financial markets? We aren’t going to suggest trading and investment are analogous to gambling but uncertainty runs through each activity. The way this uncertainty manifests itself might be different, but the point remains that in trading, investing and casino gaming, there are no guarantees.
Given that the financial markets can be linked to casino gaming in this way, there’s an argument to be made that participants in either sector can learn lessons from each other. For the purposes of this article, we’re going to take the position of traders and investors (for obvious reasons). However, it’s perfectly possible for casino gamers to learn lessons from financial experts.
Not All Games Are Created Equal
Now we’ve set the scene, let’s get into it. The first thing financial types can learn from casino gamers is selection. The leading online casinos offer hundreds of games and not all of them have the same payout potential. For example, slots linked to the Fireblaze Jackpots network, such as Legacy of the Tiger, offer progressive payouts. For clarity, progressive payouts are based on communal contributions.
When people play slots such as Legacy of the Tiger, a small portion of their bet goes into the Fireblaze Jackpots well of cash. As explained by Law Insider, money pours into this well, incrementing the prize value with each bet, until someone hits the jackpot combination. This means the payouts often eclipse those offered by fixed-prize slots. Savvy casino gamers know this, but the top payout isn’t the only metric they’ll assess.
Progressive jackpot games have bigger payouts, but their RTP (return to player) value is usually lower than fixed-prize slots. For example, the RTP for Mega Moolah (a progressive jackpot slot) is 88.12%. In contrast, the fixed-prize slot game Starburst is 96.09%. So, what you have here is a situation where players have to weigh up the payout potential and theoretical returns.
Decisions Based on Facts Rather than Feelings
Essentially, this is a volatility consideration. Of course, as we’ve said, nothing is guaranteed in casino gaming. However, the facts do offer two different scenarios. On the one hand, a player has the potential to win less often but, when they do, it could be a significant payout. On the other hand, they could opt for more frequent but smaller payouts.
As traders and investors, we can use the same thought process. Certain securities traditionally offer smaller but more consistent returns. A good example of this is bonds and Exchange-Traded Funds (ETFs). Other securities, such as stocks in startup companies, offer infrequent but potentially significant returns. There aren’t any right or wrong answers in this regard. The securities you choose will be a matter of personal preference. However, the point here is that you need to make distinctions based on the available data and not treat all securities as equals.
It’s the same in casino gaming. Once you understand the propositions, you can make decisions based on the funds you’ve got available to spend and factors that may affect the payout potential. Some people prefer to play safe and therefore accept smaller incremental returns. Other people are happy to give more in the pursuit of greater payoffs. If you’re playing the financial markets, it’s worth thinking like a casino gamer before you make a move.
