Weekend Reading: Four Things Poker Taught Me About Investing

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading poker and investing Weekend reading poker and investing
Weekend Reading

If you’ve been following the Retire With Purpose podcast for some time, you might recall we’ve featured two previous poker experts, Maria Konnikova and Annie Duke, for in-depth discussions based all around the intersection of investing, making financial decisions and poker.


Poker & portfolio management: Investment planning isn’t synonymous to gambling in a casino, but the two realms do share insight that can lend valuable lessons to today’s investors. Four featured here include:

📌 It’s not how good you are, it’s how bad your opponents are: As you acquire more knowledge, you have a greater ability to make better investment decisions, and at the same time, unskilled investors will tap out to leave the poker table (or market), making it more efficient for those who remain.

📌 It’s not how much you make, it’s how much you cash out with: In poker, you might win a hand one game, then lose it the next. In today’s economic climate, holders of high-interest rate crypto accounts might be feeling the same. What matters in the end is not the hottest investment trend, it’s what you’re left with (what you keep).

📌 When you want to keep going, it’s time to stop: Feeling any extreme emotion (positive or negative) is probably a sign it’s time to step away before any poor investment decisions are made.

📌 There’s always another hand: This same concept can apply to investing. Regardless of the latest trend, there will always be another stock, fund or vehicle that may look better.

Understand your hand: The stock market game made a pretty dramatic shift over the last decade. As such, it’s important to understand the game you’re playing today, not yesterday.