Pay to Play


Updated Sep 30th, 2020

Pay to play is a hobby. This is not an income replacement. Time spent plus the potential for lost money makes this incredibly risky. This is not a substitute for long term investing. DK, FX, SPY, stocks, options are all the same as paddle boarding, guitar, etc. Instead sell value and create tangible. Be careful pay to play doesn’t consume too much of your time or mind space. Stay fully committed to your full-time-focus. If anything, let the frustrations of pay-to-play, more specifically, the trigger happy desire to grab an endless amount of money only to come up empty handed be funneled into online business.

Pay the place phrase I use to refer to scenarios in which you need to put money up front and if you’re successful you’ll gain some money and if you’re unsuccessful you’ll lose your entry fee.

Examples of this include the stock market or really you know any of the financial markets and fantasy sports can also fall into this realm

Really any business is a pay to play in the sense that if you were a hairdresser you have to put up money to start your business but a small business to me is different than pay to play.

Pay to play markets are like this: you go and put up your money and if it’s unsuccessful you not don’t make any gains and you actually lose capital and more than just opportunity cost in your time spent.

This to me is quite a bit different than I spent a lot of time building something (a web app) and if it doesn’t work well I lost my time but it really didn’t cost me anything financially except intangible opportunity cost, (although you can look at time as labor capital).

But I will say one of the big things about pay to play is scalability. I personally like fantasy sports over financial markets in quite a few aspects mainly that it’s very successful but it doesn’t scale. Building web apps may seem less risky but I’m also the one doing all the work. Contrast this with a winning option strategy that can easily add zeros on the end of your results. Let’s say for instance if you have a daily fantasy strategy that’s winning 65% of the time but you can’t find contests to enter with enough entries over a certain amount let’s call it a hundred bucks. Your income is limited. If you had a winning option strategy that had the same performance track record of 65% the liquidity and depth of the financial markets is very scalable. With that being said finding your markets are supposed to be efficient and so nobody should be able to reliably pull out money over the long term. It’s also a matter of tangible versus intangible what are you really building with a winning option strategy that’s scalable? What are you really building with a winning daily fantasy strategy even if it was scalable? At the end of a decade will you look back and be proud of what you’ve built?

And that dreadful feeling of losing

There will inevitably be that time where you suffer a string of losses and boy does it not feel good. To spend time on research, put on a trade or lineup that you feel really good about only to have it fail really sucks. After a single loss turns into a string of losses and you find yourself in a slump you may start to question your game plan. It’s not a good feeling. Compare that with the “steady Eddy” nature of non-pay-to-play endeavors and you’ll be second guessing yourself and making matters worse.

What pay to play is not

Pay to play is not in one replacement. Supplemental income at best. Hobby. Be cautious of how time you spend on your hobbies.

Perfect Day

Look over some stock charts for swing trades and option plays. Daytrade FX a bit during US/London Overlap. Beach to paddleboard. Research some DFS lineups. Play guitar, watch the game. Friends and Family interspersed through all of that.