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Author Topic: Pssst………..a Dollar profit is worth just as much as a Dollar initially invested.  (Read 54 times)
FredStringbet
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February 20, 2018, 08:39:29 AM
Merited by suchmoon (1), Jet Cash (1)
 #1

Hi,

I’m pretty new to this crypto world and this forum. I have a background in poker, and I notice a shared fallacy among poker players and many people on this forum.
That is to treat the dollars out of your initial investment differently from the dollars profited.
Almost to the extend that they are treated as 2 different currencies.
Where for the first it’s a disaster if you dip into it and the other can be thrown around like its playmoney.
It’s really irrational to look at it in this way. A dollar profit is just as much yours and you can buy just as much with it.
It’s this type of thinking that leaves you vulnerable to being exploited.
In poker I sometimes saw someone making literally 2 stacks of money in a live cash game. One starting stack and other profit. Near the end of the evening these people could easily be bluffed out of a hand by placing a bet that was a little larger than their profit stack.
Same is applicable to the crypto-world, it’s this type of thinking that leads to stupid decisions like selling during a dip because you almost touched your initial investment and that (in your mind) needs to be avoided at all cost.
If it’s really a disaster to touch your initial investment it probably means that you invested too much and that leads you to becoming ‘scared money’ and that again leads to blurry decisions.

Just my 2 cents, hope it’s helpful to anyone.
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Jet Cash
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February 20, 2018, 02:39:12 PM
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I've never really though of it that way, but I agree with you. I played Brag as a kid, poker seemed like hard work. and all the good brag players moved up to poker, so it was easier to earn the daily bread. Smiley

I didn't like to leave much money on the table, probably because I didn't want people to see how much I was winning, or that I had got. As an extension to your point. If you withdraw your winnings, then you have a new total for your stake, then your logic applies, even though the new stake includes previous winnings.
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February 21, 2018, 06:31:24 PM
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Makes a lot of sense.. even as a long term trader I feel that I can fall into this trap (I position traded this stack into being free so who cares mentality) and you're right.. the poker analogy really helped.. because I could see me doing the same thing in poker as well.. I find it interesting that you use this as a strategic advantage and people actually create the stacks on the table for you to see... I'm going to pay attention next time.
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