From Fifth Street to Wall Street
Sunday, November 23, 2008 - smokin_aces
Why do we play Poker? Apart from the enjoyment of the intense mental battles, the adrenaline rushes and the thrill of the chase, we want to win MONEY. There are a million ways to get cold hard cash, but there is an undeniable allure to using our instincts and wit in a battle infiltrated by fate and destiny. We all believe that at different moments in time we’ve got ‘a feeling’ or that we’re tuned in to something no one else has yet noticed. The idea that we can act on these in a manner defined as gambling has a classic appeal that has been around for centuries. This appeal is no more closely mirrored than in Poker’s unlikely sibling, financial investing.
The close relationship of playing Poker versus playing in the stock market has been documented many times. It’s no secret that Poker’s harrowed champions share many attributes of successful investment gurus. The object of this column is to spend time examining some of the qualities, philosophies and techniques of the historic and present day hero figures from both the world of Poker, and the financial investment community. With ‘luck’ and perseverance, we’ll outline some areas we can all stand to improve, in hopes that collectively we’ll increase our returns on both fronts.
Discipline is not specific to either Poker or investing. Most people’s first connotation of the word is negative, and usually involved ‘being disciplined’ as a result of a childhood wrongdoing. In the present context, we’re interested in learning ways to discipline ourselves to remain true to the strategies and theories we’ve selected away from the table, and before the market opens. (It should be noted that we’re making the assumption your Poker/investing style is not a series of aimless, wanton acts with no preconceived game plan, void of reason or logic) This isn’t the place to discuss actual strategies, but we can discuss the importance of remaining consistent with your chosen one. Mathematically speaking, in order to make gains over time, you’ll have to be comfortable with an average rate of return much lower than what most would consider a large profit. Sure there will be times when you make profits in leaps and bounds, but there will also be other times when you lose big. As long as you’ve got the discipline to consistently bet on the odds in your favour while wagering an amount you can lose without busting out for good, chances are good you’ll profit in the long term.
We want to hear stories of how you’ve used an element of discipline either in Poker or as part of an investment strategy, and how it’s benefitted you. As well, if you’ve suffered a loss because you failed to remain disciplined, tell us about that as well.
Tags: investing, Poker Poker Poker, Poker Strategy
