Beware of the Lottery Ticket Mentality

Within the last year, “meme-stocks” and “meme-currencies” have immensely grown in popularity amongst new traders. There are certainly positive aspects to the increase of public interest in high finance. Unfortunately, there are also many people out there who approach their investments as a gamble – buying assets without looking at any of the technical factors that would indicate whether their assets are likely to head in a bullish or bearish direction – rather than taking the time to do the research needed to place advantageous orders.

This is Where Killer Whale Signals and Strategies come into play. Killer Whale utilizes time-tested technical analysis and state of the art algorithmic intelligence to forecast the cryptocurrency climate, with a high degree of accuracy.

What is the Lottery Ticket Mentality

The lottery ticket mentality can basically be defined by the mindset that stems from the natural human desire to achieve financial success, without having to overcome the traditional obstacles that separate the average person from their long-term goals. After all, who would honestly be opposed to getting rich quick, if the opportunity presented itself?

The gambler

This is often the category which many new traders fall into, when they invest, without sufficient knowledge of the assets that they are purchasing. Using proper technical analysis, trade setups can be projected ahead of time, based on market circumstances and trading history. Buying assets without any mathematical indication of future price action, is no different than placing a bet on a craps table.

Gamblers have an equal chance that their bet will go in either a bullish or bearish direction. Without studying the history of an asset, there is no way to know how it will perform. Traders who use proper technical analysis on the other hand, have a significant market advantage over those who are placing positions on a whim.

Adrenaline Junkies

Cashing out on successful trades is certainly a one-of-a-kind feeling. The rush that comes from putting your money to work, and making a return on it, can make you feel like you are one of the smartest and most resilient people on this planet. As they say however, “Everyone is a genius in a bull market.”

Adrenaline junkies see the price of an asset rising, and never consider the fact that it will eventually correct downwards, later down the road. As an example, many people at the beginning of this year, dipped their toes into the world of investing because of “Wallstreet Bets” and meme currencies like Dogecoin. There were quite a few people who profited greatly from these investments, although any chance of short-term success had long since disappeared by the time the media caught on. There are also huge risks which can (and often do) come with adrenaline fueled, half-cocked investment strategies. Every stock, security and crypto will follow accumulation, absorption and inevitably distribution phases. Simply put, going to the moon is only worth the trip for those who are also willing to take the hit, if they make the wrong decision.

Conclusion

We all start with the same set of human emotions about trading an investing. The thrill of the chase is too strong and intriguing to take on the nuance of discipline. While this comes in many forms the "winner take all" phenomena can persist longer than tolerable. There has to be an inevitable flip in mindset. Finding rather than forcing opportunity will become your greatest asset. The one factor on our side is time, tomorrow there will be more action on the chart, new sentiments and the psychology of our fellows to push us forward. Investing is all about surviving and thriving for years to come while having put your earnings to work along the way. We become wealthy when knowledge and ambition come to fruition.

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