I usually post here about all the problems playing poker can cause … loss of time, $$, balanced life, etc. Well, to be fair, I came across an article in a financial magazine that says playing poker can make you the next Wall Street wizard. Well, almost.
Aaron Brown, at Morgan Stanley on Wall Street, is the author of The Poker Face of Wall Street. He thinks the tricky part of investing isn’t finding good stocks or mutual funds – that’s fairly straight forward.
The hard part, he thinks, is the psychological side of investing. But, poker can come to your rescue!! He says that poker players learn about taking risks, when to pull out and when to stay in, and the level of aggressiveness they’re comfortable with.
For example, blue-chip investing is pretty safe, like “betting only when you have a royal flush.” You’ll make some money reliably, but without a lot of excitement and probably not big $$ rewards.
Looking for stocks that are out-of-favor but can rebound, the “contrarian” approach, is like “playing lots of hands, even weak ones.” But you need to fold if the cards, or stocks, go against you. The potential is there for the stock going way up, sort of like a great bluff with bad cards, or having great cards but no one else at the table thinks you do.
Any investors out there with a comment??
…I wonder if Mr. Brown is up at 3am playing “just one more hand” ???