The Poker Face of Wall Street

There are situations in which the leader should strive until all hope is gone

To be even an average poker player, you must often throw away good cards, regardless of how much you have bet on them, even when there is a good chance that you could have won the pot if you kept betting. And you must learn to fold as early in the hand as possible.

In traders' terms, you must take risk only when you're getting paid enough for it. In poker terms, you must extract all the value you can as a cardplayer before you start relying on your poker skills.

have a better chance of succeeding.

Poker players who understand risk management principles

The key is not minimizing risk, but managing it.

Poker has valuable lessons for winning in the markets, and markets have equally valuable lessons for winning at poker.

It is not that gambling imitates economic life, but that economic life is largely modeled after gambling.