The risks involved in investing money can be quite similar to those taken by high stakes poker players. The idea is basically the same. Money is put up on the hope that it will be increased with the winning hand. Strategic play is equally important, as knowing which odds to play and which bets to leave alone are crucial factors that affect the success of investors and poker players alike.
Personality and playing style figure into the equation as well. For example, true championship poker winners have a cool and collected demeanor and seldom behave in a cocky or brash manor at the tables where they play. Perhaps their calm comes from knowing that they only play the funds that they can afford to lose. Gambling away the house payment on the odd chance that they might double or triple it is a game played by those less successful and often in distress. While those that are playing under such stress tend to look at their winnings and losses by the hand or by the hourly results, winning players look at long-range win/loss statistics as part of a bigger picture. This is the same principle that can be applied to the behavior of winning investors.
Wasting money on bad bets, those that may be too expensive, or are far too risky just to make a quick buck is not characteristic of the world’s champion investors. Winning investors tend to share common traits and behaviors. They study their fields of play until there is a good sense of what may be a winner and what investments to avoid. They are well aware of the potential ROI, or return on investment, that could come from putting money on a particular stock or in a volatile market. Their investment habits generally mirror the ability to lose what they’ve put into a bet. They pay close attention to the other players, avoiding the temptation to let them know their hands or strategies. Winners don’t show their hands in either investing or gambling games.
For this reason, great poker players and successful investors alike share the flexibility to break out of the conservative mold now and then, perhaps risking more than usual on a ‘long shot’ that could result in quite a win if all works out well. Aggressive play provides a burst of adrenalin that cannot be matched. Aggressive and risky play should be reserved for those times that are well earned through attentive study and never when the player cannot afford to lose the amount that is played. Going ‘all in’ on a great paying bet can be exhilarating, but will be much more satisfying when a loss won’t put the player in dire straits.
Learning to invest wisely and successfully can be enhanced with the study of poker and its nuances. At a site known as playpokerfree.com, users can see examples of strategy and learn the rules of the game. Play for free and practice using the attributes of winning poker champs and investors. Pay close attention to what others at the table are doing, holding, and how they are betting.