Buffett vs You vs Poker Player

Discussion in 'Trading' started by qll, Jul 4, 2006.

  1. qll


    pick up any trading book vs value investing book, you see two totally different money making methods.

    money management, risk management
    trading: never risk anything more than 5% per position
    buffett: don't even care, if down less than 50%

    price, volume, chart:
    trading: that is pretty much all
    buffett: does not care any

    So, the question is why Buffett never swing trade? Is your income better than his?

    My understanding is that Buffett is really a fund salesman and business manager. He got as much as possible from investors then buy companies, then manage them, then tell people: "I am investment god, look at how great those once shitty companies are now." For me, Buffett is called Fixerup Real Estate investors like.

    Now, let's talk about poker. Many said poker is like stocks. But I think it is wrong. In stocks, you can stop loss, in poker, you can not take bets off, when you see new cards are againt your odds. In Poker, you need to risk all-in when you think you got a great hand, but that is the time you will lose all. I think it is the worst money management ever. For me, I think using the best money management in trading, you can always take position #2 in poker, but never #1. If you use poker skills in stocks, you will lose very fast.