David Kirkpatrick

January 11, 2010

Gambling and investing

Filed under: Business, et.al. — Tags: , , , , — David Kirkpatrick @ 2:16 pm

Looks like the skills that make for a strong poker player can help you improve your investing strategies. (I should quickly add the title could be a little misleading because I consider poker a gambling game of skill, not chance. Much like investing.)

From the link:

The psychological issues that drive investing and gambling decisions aren’t merely similar. They are “identical,” says Andrew Lo, director of the Massachusetts Institute of Technology Laboratory for Financial Engineering and one of the leaders in the field of behavioral finance (listen to our podcast with Lo). It’s easy to find investment professionals and professional poker players who agree. Says poker pro Daniel Negreanu, who holds four World Series of Poker bracelets and two World Poker Tour Championship titles: “Having emotional stability and emotional control is key to both investing and poker.”

1 Comment »

  1. I have followed up from Bob’s articles in my posting about the article at my Texas Holdem Investing blog – http://bit.ly/7YmUxt.
    There is no substitute for playing poker with real cash.
    Playing freerolls is of limited use, and is similar to “paper trading” to learn how to invest.
    All the “free” training you go through will not prepare you for when your cold hard capital is at risk.

    Comment by John aka The Masked Financier — January 12, 2010 @ 7:31 pm

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