Lottery ticket mentality

This article will focus on a mindset that hinders the prosperity of many new traders. This mindset 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? This mindset is referred to as “lottery ticket mentality.”

Before we fully immerse ourselves in the subject of our discussion, its important to mention the growing number of people who are taking interest in the world of trading for the first time. If you are one of them? Great! If you are a well-seasoned trader, that is great too! What is important is that more people than ever before are taking proactive steps to secure their financial futures. Regardless of your level of skill you can rest assured that Killer Whale is right here to help, every step of the way!

The Two Types of Lottery Mentalities

1 The Gambler

This factor is what drives some people to buy or invest in anything that might make them independently wealthy, with a degree of certainty that leads them to believe background research is unnecessary. The influx of individuals who have purchased Bitcoin for the first time, as an example, are more likely to outnumber the number of first-time buyers who actually understand how Bitcoin works.

This group is innumerate and against all odds will hope to gain a giant windfall. With little desire to learn or embrace a new skill, they approach new prospects as the "winning ticket". The mentality of this individual will lead to using a disproportionate percentage of their net income or capital.

2 The Adrenaline Junkie

This group seeks the cheep thrills while dreaming of lavish vacations, houses, cars and irresponsible spending. Ignoring the fact that none of this is reality, they do not approach the industry as a business. For this group the thrill of the win is good enough to keep them coming back.

The adrenaline junkie delusion that the price of a security or cryptocurrency will only ever increase in value is the second major component of the lottery ticket mentality. The idea that a price will never eventually fall has been the most noticeably prudent characteristic of the lottery ticket mentality, since the beginning of 2021. Between the Wallstreet Bets campaign and numerous people toting “Dogecoin to the moon!” lottery ticket mentality has even impacted mainstream media. Every stock, security and crypto will follow accumulation, absorption and inevitably distribution phases. Simply put, going to the moon is only worth the trip, if you aren’t obliterated upon reentry.

Applying this Concept to Investing

Friends 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.

"Prefer knowledge to wealth, for the one is transitory, the other perpetual" - Socrates

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