The most common reference regarding psychology and gambling is in the field of psychopathology and gambling addiction. Clearly, this research has been helpful in not only defining the clinical aspects of compulsive gambling but finding treatments to help individuals.
However, there is another side to gambling psychology which is becoming popular and that is how psychology – the study of behaviour and mind – can be used as a tool for advantage. It’s a fascinating and little known subject for the simple reason that most research is undertaken by individuals or corporations who invest often large sums of money to appreciate gambling from the perspective of the human condition.
Psychology has become something of a dark art for both backers and layers using this powerful data and insight to take advantage of those who simply do not know that psychology is being used against them.
I have found a couple of psychological angles based on theories and principles which detail such advantage. One is related to the Contrast Principle which hypothesizes that people often over compensate when judging variables. This is an interesting finding because it gives an opportunity for those informed. An example, gamblers often consider a beaten horse has little chance of reversing the form. Consequently, the price offers greatly value.
Many advantages relate to social psychology, particularly stereotypical behaviour or fixed action patterns, which suggest – via the human condition – that individuals behave in very predictable ways. As these behaviours are unconscious, those with insight win your cash.
The betting exchanges are an area where psychology is at play. These well-informed gamblers use psychological theories and principles to making a killing. The great white sharks in a small pond feeding on its prey.
It’s a fascinating subject matter.
I would suggest to anyone using betting exchanges to watch how they bet, especially those actions which lead to regular loss. They may fall prey to a layers using psychological angles and beating the odds. It could be something very simple such as the timing when placing a bet. In fact, it could be almost anything. Simplicity is often key. However, the only person who knows these psychological principle is the one who has done the research and found statistical significance. Obviously, the sale of such information is unlikely.
The use of psychology within gambling is a subject you won’t hear or find much literature. In fact, this is one of few posts on the internet because little is known about this subject. However, make no mistake it is used by the few who are making a living from something most cannot envisage or see.
The ultimate winning principles with a psychological underpinning.