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Poker & portfolio management: Investment planning isn’t synonymous to gambling in a casino, but the two realms do share insight that can lend valuable lessons to today’s investors. Four featured here include:
📌 It’s not how good you are, it’s how bad your opponents are: As you acquire more knowledge, you have a greater ability to make better investment decisions, and at the same time, unskilled investors will tap out to leave the poker table (or market), making it more efficient for those who remain.
📌 It’s not how much you make, it’s how much you cash out with: In poker, you might win a hand one game, then lose it the next. In today’s economic climate, holders of high-interest rate crypto accounts might be feeling the same. What matters in the end is not the hottest investment trend, it’s what you’re left with (what you keep).
📌 When you want to keep going, it’s time to stop: Feeling any extreme emotion (positive or negative) is probably a sign it’s time to step away before any poor investment decisions are made.
📌 There’s always another hand: This same concept can apply to investing. Regardless of the latest trend, there will always be another stock, fund or vehicle that may look better.
Understand your hand: The stock market game made a pretty dramatic shift over the last decade. As such, it’s important to understand the game you’re playing today, not yesterday.