Investment Money Management
As with all of the comparisons between Texas Hold’em and investing, your money management rules in investing will be dictated by the investing strategy that you have adopted and therefore will not be based on hard and fast rules as with Texas Hold’em.
The first decision that you need to make is the initial size of each investment you will make. This is equivalent to selecting the starting limit level at which you will play Texas Hold’em.
You will need to determine you starting investment bankroll based on the expected worst case scenario that could occur should you suffer a string of adverse investment results based on your chosen investment strategy.
You should analyse the potential performance of your intended investment strategy based on historic market movements to determine what could be the worst case outcome to help with appropriate developing appropriate money management rules.
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