Maybe we should start "Gambling Funds" to mitigate the risk of loss

[OgNasty]

I don't really see how pooling funds mitigates losses.  If anything, I think it would add drama and cause everyone to lose money together.  Investment funds work because investors have the edge over lower prices due to inflation.  With gambling, the more you gamble, the more you are likely to lose, so joining forces might not be the greatest idea.  

It would be a fun project though.  Someone should do it.

[silpersurfer]

To me, investing and gambling ought to be totally apart since they have very different natures. The core of investing is asset building͏, long-term gain, and improvement of financial health. If returns from investment are used for gambling, the main idea of investing is defeated͏. In the end, investing just turns out to be another channel through which one gambles, not building for the future.

In gambling, losses are something that can never be completely avoided. No matter what plan one uses, there is always a possibility of losing money. One can only minimize losses by limiting bets, playing only in situations where extra funds exist, or refraining when in an unstable mental condition.

Therefore, to fuse investing and gambling in one stream is actually going to be leading a person off track. While it is healthier to keep investing as an investment if someone wants to gamble, use a small amount of money that they can truly afford to lose.

[Gozie51]

Gambling and investing I guess, it is a good idea because it will give the gambler something to fall back incase of losses. However, the challenge is that most gamblers involve in gambling because they want to make ends meet financially, so to have investment program or strategy alongside gambling isn't what a gambler of such level will be considering. A gambler will hardly use the money meant for gambling for investment and moreover it is usually small amount of money that is used for gambling which will not be sufficient for investment.

[justinlamode]

If a gambler have enough funds, there is nothing bad with investing that funds so that the proceeds can in turn fund gambling, this is a nice strategy but I will not intentionally make investment because I want to use the proceed for gambling. I have the mindset that gambling should be done with part of the discretionary income and that can include money from any other means. Making investment for the sake of gambling make appear too serious and contradicts the principle of gambling with only what one can afford to lose.

[GeorgeJohn]

Based on experience there is no gambling that is assured because every gambling it is a must that you will take a risk and such a risk may be favorable to you or not, when you want to gamble with a huge amount of money just have it in mind that on the process you may lose and he may not lose, so if you realize such I think the best thing to do is to gamble with the what can afford to lose,

When you are gambling with a big amount of money it is the same risk that you are taking, so that is why everybody keep on emphasizing that we should be gamble with what we can afford to lose because the higher the money you gamble with the higher the profit you make and the lower the money you can go with in the lower the money you make in gambling so it is better for you to Choose Wisely so that it will not affect you when you lose.

[Shinpako09]

The key is discipline. This won't work if you don't have discipline. At this point, if you have been gambling for years, it's already hard to restrain yourself. You need to replace gambling with something that has a faster ROI; if not, they will end up gambling in the middle of the plan. The majority of gamblers play for money. If there is an opportunity that could earn them better, maybe they can restrain themselves. Investment is not bad, but with their nature of having little patience, good luck if they don't lose control in the middle.

[Churchillvv]

Well 10% to 30% is a really high amount out of someone’s income but however that same amount that will be invested merely for gambling purposes will also be the exact same percentage used to invest for one’s lifetime investment however my opinion is if we have an investment like the mutual funds or whatever type of investment that yields annual return we can take a very little amount like 1-5% of profit for gambling spread out within a year, so whatever you are gambling with is only within that amount then you can be more comfortable losing and when you win you will be better.

There is no difference between what op is saying and main investment and instead of venturing such it would be that better for someone to just have such funds used to stash up bitcoin through DCA, as it would really help while people gambling can either uses 1% of their weekly/monthly income to gamble which could reduces the risk ratio to either 2% as gambling probability is always low and doesn't direction and means of creating winning within shortest time frame.

If there is no difference, then when we invest in bitcoin through DCA is there difference now? As long as we earn infact I can just say we should just stake little amount and just keep the normal lifestyle which we usually or will likely do without much thought that’s is making investments for our future self yet gambling with our garbage funds or any little amount that we can afford to loss easily.

[Alphakilo]

You should know not everyone understands much about investing in other mutual funds or bonds or stocks or any kind of business with the assurance of dividend overtime, because while some are educated, others aren't and would not like to keep their funds where they can't get a hold of it for quicker profit like gambling would on sure odds anytime.
If you get closer to most gamblers you would understand that they have strategies that they use to have regular wins because of experience and time and it would be harder to learn to invest in an investment that would assuredly pay better than gambling.
I would love to see you try to convince a pro gambler otherwise about investment though.

[DubemIfedigbo001]

Gambling and investing are two different disciplines that shouldn't be intertwined. Gambling is not an indication of lack of investing. I gamble and invest as well. Gambling is for fun and investing is for business. I cannot allocate up to 10% into gambling, it's way above my budget, for those who allocate huge sums to gambling, they can try out your advise. I dedicate very little amount to gambling (less than 5% of my income) and I like having my fun, none of these have deterred me from investing. I would not channel gambling funds to investing because they are very insignificant compared to what I actually assemble for investment purposes, and I cannot leave out my recreation time for anything.

[death69]

The fund idea makes people friction. Friction is valuable. Right now, it won't take me long to get from the point "I have money" to the point "I'm gambling" - apps made sure of that. Your proposal inserts a 12-month delay, a different account, a different mind set.

However, someone throwing in 10-30% income isn't doing it because they don't have investment knowledge. They're doing it because gambling is fulfilling a need index funds simply can't touch. The dopamine math has nothing to do with annual returns. It wants now. For a spin, for a deal and for a whistle. Your strategy asks people to give up their immediacy for their security... and immediacy is precisely what we're buying.

What I do appreciate is that you're thinking in systems. Compare that to most of the advice we see around here. Most advice assumes that willpower is infinite and free. Yours assumes it's scarce and needs support structures.

[Karl_3000]

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.

I do not know much about index fund or mutual fund but I am a very responsible gambler, or maybe I can not even call myself a gambler because I do not use high amount of money to gamble which I think is what that is very important in gambling. For those that are highly risk takers, they will not listen to your advise because they will want to satisfy themselves in gambling. But if they should be given good advise, the best is for them to have control over gambling and use small amount of money to gamble instead. Without control over gambling, they are only deceiving themselves.

[AbuBhakar]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

This is strategy is too hassle just to avoid gambling. Gambling is for entertainment purposes and shouldn’t have an extreme restriction like this or else you need different solution such as counseling since you might be probably suffering an addiction.

You can always play low amount to avoid losing too much and get some entertainment when you needed it.

There’s also a potential danger on this strategy when you lose that specific bankroll coming from investment yield. You might feel regretful for losing since you waited for 1 year just to get it. There’s a high chance that you will have an urge to recover it back.

[Kelward]

If a gambler have enough funds, there is nothing bad with investing that funds so that the proceeds can in turn fund gambling, this is a nice strategy but I will not intentionally make investment because I want to use the proceed for gambling. I have the mindset that gambling should be done with part of the discretionary income and that can include money from any other means. Making investment for the sake of gambling make appear too serious and contradicts the principle of gambling with only what one can afford to lose.

The strategy can be beneficial for gamblers with large funds, instead of using money directly to gamble they will invest it and be using the proceeds for gambling, by that if they lose it won't affect them negatively. But if you look at it from another angle the money we use to gamble is earned from somewhere, it could be from profit or salary, unless it's gifted to us. I agree that the strategy of using money that is specifically for gambling to invest and use it's return to gamble seems too businesslike, I will prefer to take money from my discretionary funds to gamble. No matter what financial strategy that you choose to fund your gambling bankroll let it be amount that you can afford to loose.

[ZeroVinsonN]

So this is an interesting idea, im sure its been thought of before but im not sure if we have ever discussed this in here before and even if we have im sure its worth it to resurface. 

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.

This strategy has huge upsides:

1. You practice restraint of all gambling activities and earn your gambling though investing
2. You traded a bad habit of gambling and losing with investing and now see consistent returns if invested properly.
3. You will feel better if you do lose in your gambling activities because you wouldn't lose your initial earnings, just the gains for that year.
4. If you do win, youre not only winning from gambling but now youre also winning from investing 😉

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

Well what's the guarantee that you will actually get any 10 to 20% returns at the end of the year, there is no way to know if this that investment will pay off, it is a good strategy but it's built on a 'maybe' and that's one major downside already, but let's consider that it actually works out in you favour then it's a good strategy of course most gamblers will not be able to keep themselves within the limits of that particular fund, at the end of the year that money will seem like some kind of free fund so spending it all won't bother some people very much which will most likely lead to them spending it all and ultimately spending money outside of it to progress their gambling.

[fruktik]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

In my country, you need to be a qualified investor to buy mutual funds, bonds, and some stocks. This status comes with some pretty strict eligibility requirements. I can say with certainty that not many of us qualify. Therefore, this option isn't always suitable. Only recently did one bank offer the option to invest in a specific set of securities, but they clearly don't generate enough income to warrant playing. On the contrary, you could end up with a significant loss by the end of the year.

[cryptoaddictchie]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

I think it’s an interesting strategy on paper, and it definitely sounds better than burning 10–30% of your income straight into gambling  but in reality, it mixes two things that shouldn’t really be tied together indeed. Long term investing and short term gambling urges. Index funds and mutual funds work because you leave them alone for years, not because you treat them like gambler’s piggy bank. Also if someone is already struggling with impulse control, expecting them to wait a full year just to unlock gambling money might be unrealistic and not feasible to already gamblers. Maybe addiction will be lessen but not guaranteed for them to not play at certain point of time.

Yes, the concept may teach discipline and create a buffer, but it can also turn investing into just another feeder system for the same habit. If the goal is to reduce gambling losses, addressing the behavior itself is still more effective than building an investment pipeline just to justify gambling later.

[lovesmayfamilis]

OP, you're probably aware that doctors compare gambling addiction to drug addiction. How can a drug addict invest in something, especially when their timeframe is in annual increments? Similarly, someone who's addicted to gambling has a different mindset. They focus on playing frequently and often lack alternative ideas. If a gambler knows how to manage their finances and uses gambling as a form of occasional entertainment, they likely know where to put their money, how to spend it, and how much.

[AVE5]

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.

I don't know who thought you that 10%-30%  of our incomes is being used for gambling. To most that states how much of their incomes used for gambling is mostly about 1%-5% admitting that gambling is a game of risk that's not worth the risks of lavishing more than we can afford.
Already, investment funds is always being put part of the budgets from your 100% income and after all necessary needs is being attended to, then you can carve out some from your free funds.
With this strategy you don't need to be bothered about your income or investment again.

[Betwrong]

Nahh, it's will be a no for me. It will only cub way for addiction because you will then say to our self that you have enough funds to risk and possibly fail to use a good risk management till all the said investment money has been exhausted then you go again for another round.

That's what I think too. Telling a gambler your risks are covered will most likely make him/her gamble over their limits. When I read, "using 10-30% of your income on gambling " in the OP I thought, wow, that's huge. No one should even think of losing 30% on gambling because it's impossible to live that way. Spend on gambling not more than 5% of your income and then gambling will become something that brings positive things into your life. You don't need "Gambling Funds", you just need self-control.

[bitbollo]

If you don't know in what you're investing, or you haven't a clear idea about the markets, or worst, you don't have idea on how it some economic things work... its better you don't take part in these activities.It's like any other risk activity...
the chance to lose is really high. Plus you're literally GAMBLING!
Indexex/ in general all markets have not been disegned to an endless growth... even this can become a risk.
Of course n the long time there is no doubt of what it would be the winning side. What about entertenaiment? I think that players gamble also for having that trill... it's an essential part of the game...