Stock Trading and Poker Psychology
Some Unfortunate Truths
by Alan Schoonmaker | Published: Dec 11, 2013
The Motley Fool is a highly respected financial advisory service. Its Nov. 12, 2012 report, “50 Unfortunate Truths about Investing,” contained points that can improve your poker. 3. Markets go through at least one big pullback a year, and one massive one every decade. Get used to it. It’s just what they do.” Tweak the timing and replace “pullback” with “losing streak,” and you’ve got a poker truth: Losing streaks are inevitable. You must accept that you’ll have several short ones and an occasional long one. One implication is that you may need a much larger bankroll than you have or believe you need. Many authorities have estimated the bankroll necessary to be nearly sure of survival, but hardly anyone believes them or plays within their suggested limits. They think, “I’ll have some short losing streaks, but can’t have one so long that it busts me.” It’s the same optimism ...
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