Typical (Bad) Performance Monitoring
The typical Texas Hold’em player plays poker reasonably regularly, picks a random a table at the casino / on the internet and then starts to throw chips in. The amount won or lost is unpredictable from one session to the next, with every good session goading the player into thinking that a winning streak is in progress and that more should be risked. The ultimate effect is predictable – a return to the average result – which usually results in a drop of bankroll to zero after allowing for the rake. Despite reading numerous books on how to play Texas Hold’em, the player never spends time checking out past performance or looking at the behaviour of fellow players.
Typical investors display the same careless attitude to tracking their progress. The good investments (just like the good hands) stay uppermost in the mind and the poor investments (just like the bad beats) are forgotten.
However, it is generally the bad Texas Hold’em and investment decisions that teach us the most about what to do and what NOT to do going forward.
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