THE ART OF THE GAME
Beyond Market|May 2023
By Applying Poker Strategies To Investing, Investors Can Learn To Maximize Investment Gains
THE ART OF THE GAME

Annie Duke, a well-known decision-making expert and professional poker player, has honed her skills in probabilistic thinking, risk management, and emotional control for over two decades. In her best-selling book “Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts,” she shares 18 strategies and tools that can be applied to make informed decisions in investing and the stock market.

• Acknowledge Uncertainty: Investors should acknowledge the inherent uncertainty in the investing process, despite the amount of research conducted. Unexpected events can always occur, and relying too heavily on any one particular piece of information can be detrimental. It is essential to embrace uncertainty and make investment decisions based on probabilities.

• Embrace The Probabilities: In investing, probabilities play a critical role. When evaluating a stock, investors should consider the likelihood of the company’s earnings growth and the market’s positive response to its news. By thinking in terms of probabilities, investors can make more informed decisions and avoid relying solely on gut instincts.

• Avoid Binary Thinking: Binary thinking occurs when investors think in terms of absolute outcomes, such as whether a stock will go up or down. However, the future is uncertain, and the most likely outcome is rarely a 100% certainty. Investors should instead think in probabilities and adjust their investment strategy accordingly. This approach can help investors avoid making overly simplistic investment decisions that fail to take into account the complex reality of the investing world.

Esta historia es de la edición May 2023 de Beyond Market.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición May 2023 de Beyond Market.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BEYOND MARKETVer todo
PRUDENT PRACTICES
Beyond Market

PRUDENT PRACTICES

Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks

time-read
6 minutos  |
August 2024
RETAIN ROULETTE
Beyond Market

RETAIN ROULETTE

Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst

time-read
5 minutos  |
August 2024
UNRAVELED THREADS
Beyond Market

UNRAVELED THREADS

Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains

time-read
4 minutos  |
August 2024
PASSING THE BATON
Beyond Market

PASSING THE BATON

Succession planning helps ensure uninterrupted leadership

time-read
4 minutos  |
August 2024
RISKY BUSINESS?
Beyond Market

RISKY BUSINESS?

SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes

time-read
5 minutos  |
August 2024
INFLATION-PROOF YOUR CHILD'S FUTURE
Beyond Market

INFLATION-PROOF YOUR CHILD'S FUTURE

Inflation might be stealing your child's future, but children's mutual funds can be their superhero

time-read
6 minutos  |
August 2024
EMBRACE UNCERTAINTY, SAYS MARKS
Beyond Market

EMBRACE UNCERTAINTY, SAYS MARKS

Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo “The Folly of Certainty”

time-read
7 minutos  |
August 2024
IMPORTANT JARGON
Beyond Market

IMPORTANT JARGON

70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY

time-read
4 minutos  |
August 2024
AN ASCENT T'O NEW HEIGHTS
Beyond Market

AN ASCENT T'O NEW HEIGHTS

The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives

time-read
5 minutos  |
August 2024
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Beyond Market

CARRY TRADE CRASH: GLOBAL MARKETS REEL

Japan’s Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates

time-read
4 minutos  |
August 2024