Join Date: Feb 2005
Posts: 10
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Just felt compelled to address a couple points here.
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Originally Posted by astrodon
Another very important aspect is dollar cost averaging your bank roll.
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Dollar cost averaging is a concept that applies to the accumulation and distribution of "variable priced assets" (prime examples are stocks and mutual funds) Your bankroll is not a variable priced asset. We play poker for money, and a dollar is the same today, tomorrow, next week, next year ... you get the point.
This is only a "very important aspect" of poker if are converting your bankroll to and from another currency. In other words, play for euros from the US or vice versa.
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Originally Posted by astrodon
In futures trading if you EVER are down more than 50% of your bank roll, you STOP playing altogether
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This also is not an accurate statement. Most successful traders utilize the concept of fixed fractional trading and optimize this utilizing some sort of optimal f evaluation. For the truly successful risk takers, a swing of 50% is not unheard of ... they simply call it draw down.
In poker, you can implement this type of fixed fractional strategy by having rules for moving up and down in stakes.
The other items mentioned are fairly accurate similarities between speculators and poker players.
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