Most people gamble at some point in their lives. For most it provides
entertainment, for some it becomes an addiction, while a few become
pros and make a living at it. Gambling provides a living for a very
small minority and entertainment for the masses, but a casual gambler
reaching for a quick buck has the same chance of success as an icecube
on a hot stove.Some famous investors like betting on horses. They include
PeterLynch, of Magellan Fund fame, and Warren Buffett, who used to publish
a newsletter on handicapping. Some card games,such as baccarat, are based
on chance alone, whereas others, such asblackjack, involve a degree of skill
that attracts intelligent people.Professionals treat gambling as a job. They
keep calculating oddsand act only when mathematics point in their favor.
Losers, on the other hand, itch for the action and enter one game after
another,switching between half-baked systems.When you gamble for
entertainment, follow a set of money managementrules. The first rule is to
limit how much you’ll risk in anygiven session. On a rare occasion when a
friend pulls me into a casino,I put what I am willing to lose that night into
my right pocket, and stuffmy winnings, if any, into the left one. I stop
playing as soon as myright pocket is empty, without ever reaching into the
left. Once in awhile I find more money in the left pocket than I had in my
right, but I certainly do not count on it.A friend who is a successful
businessman enjoys the glitter of LasVegas. Several times a year he takes
$5,000 in cash and flies there for aweekend. When his bankroll runs out,
he goes for a swim in the pool,enjoys a good dinner, and flies back home.
He can afford to spend$5,000 on entertainment and never blows more than
his initial stake.Lounging at a pool after his cash is gone, he differs from
legions of compulsive gamblers who keep charging more chips on their credit
cards, waiting for their “luck” to turn. A gambler with no money management
is guaranteed to bust out.
courtesy:-Come_into_my_trading_room
