Investing, it is said, is part serious analysis and part gambling.
Traits of a successful pro gambler can hence be of reference value to those aspiring to become a good investor.
For starters, good players study their game hard. They have a deep understanding of the odds and are able to quickly tell the risk and reward, based on which betting decisions are made.
They also carefully study their losing sessions, reviewing the playing conditions and their betting patterns to identify what went wrong and caused the disastrous results.
A commonly shared characteristic among professional gamblers is the ability to stay disciplined. They constantly weigh the potential reward against the worst possible outcomes before deciding when to bet big time and when to walk away.
Strategic thinking is crucial too. Good gamblers always have a game plan for each hand. And that varies with, among other things, the cards he is holding and the people he is playing against.
Psychological resilience often makes or breaks a player.
Robust gamblers accept the fact that luck will not always be in their favor. They are strong enough to not just overcome a tough hit, but also a run of bad luck, because losing streaks are inevitable over the long run.
Pros know losing is part of the game, but they can’t lose too much if they want to stay in the business. So they set aside reserves during the good days, carefully budget, and determine how much they can afford to lose.
Confidence and a positive-thinking mindset also make huge difference in a career where one will face a lot of negativism and losses. Being optimistic helps to focus on the profit potential that can be had from reading and exploiting the laws of probability.
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RC