On Xmas Eve last year, John "The Gambler" posted a list of 20 questions / comments when asked for advice on successful investing. You can check his full list of rules at http://john2e.typepad.com/ Most of them are common sense, but I am highlighting numbers 17 and 20 which are:
17. Don't drink and bet.
20. Don't chase your losses.
It is therefore sad to read in his blog that yesterday's losses were, in his own words, down to "Mainly horse racing after one too many lagers" and on February 23rd he says "Somehow nearly 5K up on the month. Not quite sure how. Probably as I keep bringing in the tanks to get out of trouble. Not a good strategy in the long term".
...after one too many lagers? ...bringing in the tanks? (high stakes at low odds)
Now John seems a genuinely nice guy and I wish him all the best, but I have to agree with the commenter on his blog who wrote that this was an accident waiting to happen. In mitigation he has had a few 'off-field' issues lately which have no doubt been distracting, but if he returns to trading, I hope he heeds his own advice. Making money at this game is not easy, but discipline, whether it be not drinking or controlling your stakes, is absolutely vital at all times. Good luck John.
About Me
- Cassini
- I have had a life-long interest in sports and after studying Pure Mathematics with Statistics at secondary school, have been fascinated by odds and probability. The first system I came up with was a simple one - back the favourite and double up after a loss until a winner. Simple enough in theory, and I told my Dad about it. Not being a betting man himself, he ran it by some of his colleagues, and came home to tell me that it wouldn’t work because a long losing run would mean that the bank would be empty. Then there was always the possibility that the winner would be returned at odds-on, meaning that the total returns would not match the outlay. Not what a ten year old wants to hear! Only slightly daunted, I then went on a search for the Holy Grail, the secret to riches that I knew was out there somewhere. Finally in 2004 I stumbled across an article about Betting Exchanges and four years later I was able to make a steady profit.
Hi Roberto,
ReplyDeleteAs it seems bloggers are dropping like novice chasers at the moment, its good to see yours going strong.
Will gladly swap links/ideas.
Keep in touch.
Tony.
"Back in a Tic"
http://backinatic.blogspot.com/