The Gambler's Itch
Sarah and I went to Monte Carlo for a day trip when we visited the south of France. We went to one of its famous casinos with the intent of spending 10 Euros. About 10 minutes later, we cashed out with 11 Euros. We called that extra coin our lucky Euro. (we immediately misplaced it in our luggage)
For the rest of the day, the week, and even the trip, we found ourselves recalling the experience with some regret. If we had gotten 1 Euro after 10 minutes, imagine how rich we'd be if we had just stayed for 6 hours! Which is ridiculous, of course. But it's the gambler's itch.
It's one thing to enjoy gambling, and giggle at the prospect of getting insanely wealthy without trying. But once you become convinced it's really going to happen for you, it's time to take a breather.
I know a thing or two about stocks, so I know that most financial professionals don't beat the market. Which is pretty pathetic, when you think about it. All you'd have to do is buy into the S&P500 and walk away, and you'd be better off than most Wall Street guys with all their fancy prediction techniques, complex strategies, and patented schemes.
But what if? What if you're the trader that's going to make that amazing trade that realizes a massive 40% profit? After all, even if most traders don't beat the market, some do, right? And it could be you! Why conservatively buy into the S&P when you could be missing out on your destiny as an amazing stock trader?
I'm playing this online stock game with some friends. After my stocks went up 2% on the first day, I considered cashing out and waiting for the end of the two month game with my meager earnings. It would have been a strong, if conservative, strategy. Instead, I became increasingly risky with my money. My score is represented by the dark blue line below:
About a week ago, I was in pretty bad shape. But look at me now! I'm trending up! Just give me a few more days and I'll be in first place again. Just one more chance. One more hit. It'll be different this time. I promise.
