recovering economist
Here are the 3 rules of craps:
Because trading can be like playing craps.
And come to think of it – these could be the rules of business too.
“Playing craps at Vegas has taught me three rules that I find indispensable in trading: DIVORCE YOUR EGO FROM THE GAME. MANAGE YOUR MONEY. CHANGE TABLES AFTER A WINNING STREAK.”
–Martin Schwartz, Pit Bull
I disagree – kind of.
Better said, I would state:
Trading is – psychologically – like playing the craps tables.
As Schwartz states, you can win in the markets, in the long-run.
In craps, you can only be up in the short-run.
The house always wins.
“Trading futures is a lot like playing the craps tables. So Las Vegas is a great place to work on the mental discipline it takes to become a successful trader. There’s no way to win consistently in Vegas, but, if you’re really good, you can win some of the time, not lose too much of the time, and have a good time all of the time. But it takes discipline. The casinos want you betting with your gut, not with your head, and they’ll do anything to break your concentration. Unlimited booze, uninhibited women, and unrestricted fun, twenty-four, seven, three sixty-five.”
–Martin Schwartz, Pit Bull