In the past two years, more and more friends in the circle have regarded Texas Hold'em as a way of socializing. The reason why I like this game is that I think the skills required to play this game well and to invest well are almost the same. I can understand many principles of investment through this game.
1. Positive EV. Texas Hold'em, like investment, is a science of probability. The reason why some people are good at Texas Hold'em is because of their high-quality decision-making. If the quality of your bets each time is higher than your opponent's EV, you will naturally be able to defeat your opponent. So the formula for profit is: profit = + EV + a large number of repeated experiments.
2. Position. For the same hand of cards, the difficulty of winning in a good position is completely different from that in a bad position. If you realize the importance of position in investment, such as the industry niche you are in, and what valuation you can get chips for the same project, the advantage is that as long as you stand in that position in investment, you can basically always be there. Texas Hold'em is actually much fairer.
3. Range. Basically, this determines what type of player we are. In fact, in investment, most people want to win, and they should practice to become tight-aggressive players, that is, you need to find a track with a high winning rate to become an expert. Everyone envies loose-aggressive players, but the difference between playing loose-aggressive well and tight-aggressive is not one or two times the skill. It's like you can play well at level 1, level 2, on-chain meme, and hair-pulling. This is a very small number of players. 99% of people can only focus on one track.
4. Decision-making quality. Ordinary people fear the consequences, while Bodhisattvas fear the causes. What an excellent poker player really fears is whether the reasons for making this decision are sufficient. He worries that his thinking scope is not wide enough and his adaptability is not strong enough. He is not afraid of the result. The result is just a probability, and even a small probability can still happen. This is exactly the same in investment. What determines whether you get the result is the quality of your decision-making at the key opportunity. In this regard, we should be more demanding, but we should be calm about the result.
A good decision essentially depends on the level of our thinking model, because most people make decisions based on their subconscious and habitual thinking. This is everyone's weakness. If you can realize this, it will be the beginning of playing this game well.
5. Mentality management. It is often seen at the poker table that people’s mentality is directly affected because of a few hands with very high winning rates but the turn and river cards are dead. People tend to attribute this problem to luck, which leads to distorted actions, and the quality of decision-making will be greatly reduced later. If you truly understand the importance of decision-making quality, your mentality will get better and better, and you will know that we should spend time studying why this information was not taken into account when making decisions, rather than blindly being affected by the emotions brought about by the results. Emotions are fake because they cannot change anything.
