Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag: Poker

By

Thx Pepe!

PrintPRINT

Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.

Editors Note: The following was taken from an exchange between Minyanville contributor Fil Zucchi and Kevin Depew. As it refers to Scott Reamer's article "Emotions" from earlier today, we offer it with hopes it adds some added context.

Fil -

Thank you for posting the interesting buzz on the explosive popularity of poker and its potential unintended consequences for financial markets. For those Minyans who have been following Scott Reamer's series on how markets are non-linear, and particularly today's piece on "Emotion", consider this thesis: that it is more likely that the popularity of poker, indeed all acts of speculation, have grown as the public's emotional appetite for speculation has grown.

The partial unwinding of the tech bubble that began in 2000 left hundreds of thousands of former market participants, speculators, without an avenue to pursue their appetite for speculation.

Consequently, it is not that surprising to find that here, almost five years later, we have seen an explosive growth in poker as a pastime, even profession for some. The cost to entry is much lower, the stimulus more immediate, the transactions easier to facilitate.

The author of the poker piece outlines just a few of the irrational decisions that individuals voluntarily choose when playing poker.

Minyans may wish to consider those irrational decisions, and then consider the last time they ever met someone who admitted that they are a poor poker player. Both of those questions resemble key components of investment and trading failure: irrational decisions compounded by an overestimation of skill level. Thinking about the poker article in this context one can gain a deeper understanding of the very important points Scott was making this morning with respect to emotion and its implications in price discovery for financial markets, and how seemingly unrelated things are actually all part of a larger complex system.

Enjoy your posts very much, Fil.


Happy New Year,
Kevin Depew

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE