Becoming a professional gambler.

Forums, blogs, bookies and betting websites are full of people dreaming of becoming professional gamblers.  Being your own boss, working when you feel like it, making loads of money and watching sports for a living is certainly appealing to most people.  Let this post (and the rest of this blog) be a reality check.

I see a lot of people giving up jobs to do this after a short time trading.  They think it's easy and straight forward, they think it will last forever...  They haven't thought it through.

I've been a professional gambler now for over 3 1/2 years.  Before that I gambled for 2 years before I took the decision to do it.  It was the biggest decision of my life, certainly not one I took lightly.  Giving up a guaranteed income and job prospects to gamble with my own money was extremely risky to say the least.

When you give up your job, you're not only going to be risking your money gambling, but your entire future job prospects.  Let me tell you, gamblers are not viewed in the same way as someone who works in a normal job.  Compare the reaction you get when you tell someone you are a gambler to when you tell them you work in a bank.  Even if you compare it to being a "day trader", the reaction is a mixture of contempt, fascination and disbelief. 

Most people will flatly not believe you.  Gamblers are the vagrants of society.  The losers that hang around bookies, wasting their family income on an addiction.  No one believes it is possible to win, and if you have - it's just luck.  Like it or not, this is how you will be viewed.  Some will feel sorry for you, others will not give you the time of day.  You are going to be one of society's outsiders.

Family relationships can be strained and tested.  It takes a lot of understanding from family and friends and this can weigh on your mind whilst you are gambling.  A stable family life is important, it spills over into your work - few jobs are affected as much by this.  You need stability and space to work well.  And vice versa, a bad day at the office should not affect the way you treat those closest to you, can you really say that you won't be in a terrible mood when you lose £xxxxx on some tennis player that gave up?

Your financial future is now uncertain.  You are no longer contributing to society, you are not paying tax - an advantage to the gambler sure, but it doesn't improve your self esteem and further enhances the feeling of being an outsider.  Try getting a loan or a mortgage, it's easier said than done.  This is why you need to try to secure your future financially as far in advance as you can before you make it your sole income.  What about future job prospects?  If you need to work again, do you really think future employers are going to be happy with you spending a year or two gambling for a living when they read your cv.   

How much have you won before you turn pro?  It's hardly ever enough.  You need to make many times your current income before you do it.  Make sure you have savings that are stashed away, preferably making you a reasonable amount of interest.  I might have turned professional a year before I did, but I had to make sure I was safe financially before I did so.  Not only for my lively hood, but so that I could work confidently and without pressure.  You cannot perform in this game if you are too worried about losing your hard earned cash.  Pressure on your profit and loss is deadly.

What about when you do take the plunge, your day to day life is going to change dramatically in ways you may not have imagined.  Interaction with other people becomes scarce.  You will be spending long periods of time alone, clicking away staring at a screen all day.  The temptation to live up to the stereotype is obvious.  Why bother making an effort when you can get up, do some work and go back to bed again.. Discipline.  Working alone throws up serious challenges.  Your health and fitness can suffer drastically.  The way you interact with other people can take a tumble.  Prepare for this in advance.

It's not all excitement and glamour.  It can be downright boring doing the same things day in day out.  Boredom for some gamblers can be their most dangerous adversary.  You can end up working on things you don't need to be.  Betting too much and over trading for the sake of it.

Gambling certainly doesn't owe you a living.  A normal job pays you for turning up, no one's going to do that here - they are going to try to take money off you for turning up.  It's you against a world of other people, all of whom have opinions, some of them most definitely better informed than you.  Just how professional are you when it comes to the crunch, are you certain you are at the top of the tree?  How consistent is your performance going to be to combat everyone else and stay ahead of the game.  There are some brilliant brains out there trying to beat you at every turn - be wise to the available strategies and the people you are up against and give them respect - it's your money and therefore livelihood they are after.

There are very few real professional gamblers, the reasons above outline why.  It's incredibly tough to do.  You are going to be tested mentally every day and you will need to guard against developing bad psychological habits.  There are reasons why gambling can cause problems for most people.  There is a fine line between problem gambling, pathological gambling and professional gambling.  Many professionals develop problems, be aware of the risks.  Here's a site about different types of gamblers.  It suggests there are fewer than 50 gamblers in the US that make over $100,000 a year.  With all the negative problems you can face as a professional gambler, you better make sure you are being compensated.  Ask yourself what a fair amount is for enduring these problems, if you aren't already making that then is it really worthwhile.

Think about your life situation and your family life.  You are risking your money and theirs.  I was fortunate when I began that I was young, single and in a job that didn't pay that much and I was able to spend as much time as I liked pursuing it, without overheads and relationship damaging consequences.  It's extraordinarily time consuming to begin with, especially as you are going to have to work hard to increase from little to a sum of money suitable to work from.  Don't underestimate the time this takes, and the time you will be spending away from family chasing something that might not even work out.

I know this post is quite pessimistic.  I think it's supposed to be.  I've heard it said before that professional gamblers are pessimists, I'm not sure I agree completely, but in this post I certainly think it's a good idea to be.  No matter how much you think you are ready, wait a while longer.  Wait until you are sure you aren't just lucky, then wait some more... Know why you aren't plain lucky, and be big enough to admit defeat if you have been.

Comments

[mick wrende]

Hi Matt
Thanks for your detailed reply to my previous comment. I can fully understand your views on professional gambling - couldnt do it myself. I only work part time now which I think is ideal and personally I would always want that because it relieves the pressure of constant analysis of odds and prospects etc. Sorry you lost overall in the tennis. It seems to me by your comments over the past few weeks that it is mainly due to a slippage away from your usual trading methods. I think the line between winning at gambling and joining the 95% who lose is very fine and is dependant on finding a niche/interest in the market and sticking to very rigid boundaries. When you stray from that for whatever reason then the trouble starts. I know myself I have veered off course in December mainly because of lack of time approaching Christmas. I stopped trading and relied on bets going to their conclusion and also I have been reading too many blogs! I have used them instead of doing my own research. Yours is fine because you dont put your tips up first but others have convinced me when I normally pride myself on not using other peoples tips. So I know now what I must do - just have yours and Rays blogs on board as neither of you suggest tips and go back to my old methods. From your own point of view I hope you have a well earned break and let the profitable pathways of your brain recuperate. I always think of the brain as like a main line railway track - only go ahead when the lights are green, stop on red and dont go down any branch lines that lead nowhere. If only it were that simple.
Mick

[Matt]

Thanks Mick,

Yeah I don't like posting tips. Mainly because I'm a useless tipster! hehe But more seriously, because I hate being given tips myself and I don't like to influence others away from making their own decisions. I'm sure some would ridicule the decision not to post up my selections beforehand, the fact is, I very very rarely make my selections prior to the start of a match. Profit and losses here are for my own record really and I don't intend to publish figures. One or two clues are available on the sort of stakes I'm playing with.

My intention with the blog was always to use it firstly as a notepad for myself and secondly to air discussions and opinions on the sides to gambling which interest me - the psychology of it. To see if I could further my learning and to get my own thoughts onto the screen. I'm also interested in changing people's views of gamblers, especially of the professional kind.

I did lose on the Aus Open. But I'm still up a sizable amount for the year and I've come to terms with it now and learnt my lessons. The main thing is I continue along the path of the last few days when I start trading again in March. There'll be no sleepless nights then, I can get back to my routine and hopefully get a good groove going for the summer ahead. I will be able to dedicate myself fully to it, clearly you understand how important this is with what happened in December for you. Hopefully your betting is going to take a steady turn for the better soon :)
Matt

[TJ]

Good post, which for the most part I agree with completely. I cringe when I hear about all these people working on "bet an increasing % of my bank per day" schemes. Unless they're getting out very quickly, those types will fall down eventually. It is inevitible. One of the best pieces of advice I've heard is that a system won't work unless it can be shown to be in profit to level stakes.

I generally don't tell people what I do for a living. Unless I physically sit them down with me for a day to show them the mechanics of the process it's not really possible for them to grasp the concept. I don't blame them for this, it's a quite natural reaction. It really confuses them when if I tell them I've made over £50,000 since September without ever stepping foot in a betting shop (in fact I've never been in one in my life, let alone over the past few months). There is a very strong concenus out there that this simply "can't be done", this front is especially enthused by failed gamblers looking to justify their own poor ventures. This is why I make a point of staying away from the Betfair forums, it's full of this kind of gambler.

So whilst I would completely advocate all you've said in your post, I'd also encourage would-be professionals to not be discourged IF they can prove their system works. This means months (ideally a whole season) working on paper alone and sticking to it once going live. The theory won't disprove itself simply because you take it live, but it will if one starts changing things because of mental attitude.

Lets take today for example, I've made about a 5 point loss on the day. I have absolutely no feelings about this what-so-ever, I don't even need to make any changes to the system. Statistically I know I have to have some losing days and that's all today is: A statstic. I still know I'm going to finish well in profit for the month. Some people can't take even one bad day however and this is a real red flag in terms of mental attitude. I like to think of the year as one large graph that one has to be able to zoom out and view mentally. One day on that graph is a drop in the metaphorical ocean.

[Matt]

Nice reply TJ.

I apologise if my blog entry was sounding a little too discouraging. You are right, if someone is ready to have a go at being a professional they certianly should. I just think it's a very rare thing that someone is actually fully ready to do it. There can't be any room for uncertainty really.

I agree with testing and testing, though I do actually advocate testing with small stakes rather than paper trading it. Even the greatest system players are slightly affected by money being on the line, in ways they probably don't even realise. Some people are affected more than others granted. By small stakes I mean anything down to £2. Just something to create enough will to prove the system and win, and to see how the person copes with this. I guarantee they will learn more than they would from paper alone. Execution of the bets for example is something you would not get any experience of whilst paper trading, and it's important to get the right price.

It's funny you mention betting shops. I've only ever been in one once, it was a confusing experience. Where were the buttons to click on, where do I enter my stake?! Do I really have to write it down on paper?? I actually had to ask the cashier what to do. They kindly explained how to do things and asked what I wanted to bet on. They looked kind of puzzled when I handed over £500 to back something, can't remember what now - but it was an arb.

Agree completely with all you said regarding one days results. You are very much a punter and I respect how you go about things. Being half punter / half trader I have to contend with several hundred other mental variables inside my brain from day to day. It's a case of seperating signal from mental noise.

[mick wrende]

To you two young lads! - in the days before on line betting, the local bookies was a bit like the old Wembley stadium - smoky, uncomfortable and stinking of urine. But heh a great place to go for a hot chocolate on a cold winters day with that busty blonde wench behind the counter. You dont get that with a laptop. Sorry you missed the experience.
Mick

[Rish]

An excellent, thoughtful and insightful post. It's a great addition to a lot of the meta-commentary that there has been in the last few days as to how the UK is rapidly losing its inhibitions around gambling.

[humble]

A very honest post matt i have just started trading again having been burnt in the past "lack of discipline and greed" and its great to have you guys "TJ" to learn from.TJ i used to be one of those guys that couldnt take even a days loss and i am overcoming it now and looking at the bigger picture.Thanks for this Blog Matt its great for people like myself to learn from.

[Mark Iverson]

A great post Matt. I find that our views are very similar. It's my hope that one day I'll also be able to take the plunge but I don't underestimate for one second how difficult it will be. If I concentrate on the processes then hopefully the results will look after themselves.

I have a link to your blog on my site - any chance you can return the favour?

All the best and continued good luck.

Mark Iverson

[Chris]

Would you consider playing poker gambling? I play poker and trade and have compared the two entities numerous times and was even published with an article on the two subjects. Poker is gambling and trading is speculation but money management and the key characteristics listed in the link you provided are essential to success.

I am positive that more than 50 poker players make more than $100,000 per year so I believe that these gamblers were left out of the study. I am far from a professional gambler or poker player but have been successful making money at the tables (only poker). A have a positive expectancy when I play.

I just found this blog today but will search around to see if you talk about poker (specifically). Nice article!

[Matt]

Thanks for all the feedback guys. Went out for the day today, came back and there's plenty of replies.

humble,

I'm going to make a post on exactly that subject - handling losses, watch out for it in the coming days / weeks. Glad you are getting something out of the blog.

[Matt]

Mark,

You should find a link to your blog on the left side of the blog, half way down. The 2 column approach means some elements will be appearing quite far down the page unfortunately, it may be something I change later on - I wanted an uncluttered look to the blog with the focus on the text.

Yes it is all process and routine, under which you foster the right amount of awareness and focus. Getting it right consistently is what it's all about. Love the blog !

[Matt]

Chris,

Welcome along, glad you found me. Was that through Brett Steenbarger's link ? There's been plenty of visiters via his page, he has a fantastic website. His posts read along the same lines as all of my ideas on trading psychology, he has the training though, I don't.

Poker I consider Gambling, Trading I consider Gambling, and Gambling I consider Trading too. There's elements of each that overlap, and lessons can definitely be learnt from each and adopted in the others.

I may not have made this clear on the blog, especially for some of the worldwide audience. I gamble on a site called Betfair, a betting exchange. It is a person to person site, people bet against each other and they set the odds. You post bets onto the market with the volumes and prices you would like and a market forms. It is very similar in essence to a stock market and can be traded in the same manner, the difference being that there is a conclusion to events traded on betfair (and therefore a limited number of price increments) and the stock market continues forever. The same psychology holds true to trading financials as it does betting exchanges.

The similaries between playing good poker and the psychology of trading and betting are numerous. Folding - staying out of the action when it's not right. Betting agressively - knowing when the odds are in your favour. Poker has an ebb and flow to it - the markets flow just the same, and you have to follow that flow to trade well. I think this is a really good idea for an article actually. I may be pressed for time to write one before I take a break for a few weeks though.

Once again, welcome along and hope you find much more of interest. The blog will keep growing.

Matt

[Matt]

Thanks Mick and Rish,

See what we're missing out on TJ :)

Rish, seems Manchester has the super casino. A friend of mine has been on all manner of bbc channels giving the professional gambler's sound bite. Very sensibly too. The problem is, very few people understand gambling and why you can't win in a casino, you are either lucky or you aren't as far as they are concerned, and thats the way the casino's like it. Anyway, that's another topic.. glad you liked the post.

[John]

Hi Matt,
Only just read this after TJ recommending it over on his blog. An excellent article, probably the best I've read regarding turning professional and it's pitfalls. With your permission could I use a few paragrahs on my blog? It's given me a good idea for a blog, I'll post the link to this article too.

Keep up the good work.

John

[Matt]

Hi John,

Glad you enjoyed the read! Sure quote as many parts as you like, just say its quoted from here, stick a link on it and you are away :) I'm liking the blog btw, great pics of the golfers, comment coming up.

Matt