2 Free Online Games that Have Helped Me Become a Better Investor2 Free Online Games that Have Helped Me Become a Better Investor.
So Im in the middle of reading the " A Man of for All Markets" by Edward O. Thorp, and its fascinating. Hes a mathematician who proved there was a potential edge in blackjack (21) based on the cards that were left in the deck. He also went on to be investing fund manager who focused on covered calls and warrants and had a consistent track record for 20-25% annual returns. But his logic covered in his book focused on not only the odds of winning but the sizing of bets in both playing games and investing.
Risk management and bet sizing is not spoken about enough in life I believe. In the age of YOLO and wall street bets, clearly its not celebrated enough. A YOLO bet is a massive bet because 'you only live once'. how silly mathematically and how foolish from a consistency basis. Been there done that.
Bet sizing is key for survival. If you cant endure and survive long enough to be massively right, then your out of the game.
In the video I share 2 games that I think are awesome for practicing these concepts. I really I had learned to play and practice these concepts in games like this in college or high school. Its a math simulation. the Coin flip game is fantastic for learning how to manage risk and bet sizing. The Cashflow game by rich dad poor dad is awesome for taking investment habits and cash managements and applying them into a mini lifecycle that rhymes with real life.
If youre new to investing, or just sharpening your skills, I definitely recommend both games.
Have a great day, Cheers!
