Re: Stock Market as a game of Poker?
[ QUOTE ]
Ummm.... a 300% return (1500 BB) at 1.5BB/Hr would be 1000hrs/month?
5K -> 1mil+ in under 4 months? and 1Bil in 9 ?
Lets be realistic [img]/images/graemlins/wink.gif[/img]
[/ QUOTE ]
Whoops. I meant 30% a month, obviously. One problem with the returns on a Poker bankroll, vs. a stock market portfolio, is that poker returns don't compound very well.
As you grow your bankroll, it can't earn more unless you move up in limits and still win. And if your win rate declines at higher limits, like it should, your ROB (return on bankroll, [img]/images/graemlins/grin.gif[/img]) declines as well.
Finally you reach your best level, i.e. where you can't find higher games you can beat for a higher hourly gain. At that point clearly you need to take all of your excess bankroll and find good side investments for it.
|