Monday, April 30, 2007

Tony Soprano, poster child for fast burn gamblers

Last night's new episode was called "Chasing It", and displayed Tony's seemingly out-of-control gambling penchant, which coincided with stress with his spouse, his financer, and ultimately in someone's death (don't want to spoil it).

I can't find an early post of mine, which advised folks here not to risk more than 4% of their allocated assets on any single event or contract series. If Tony only had read it. Sorry I can't find the link, but hopefully you've learned something from this.

As a risk manager (as opposed to a noise trader, speculator, or gambler), I don't mind taking other people's money, as they might be a little more irrational about risk than I am. But it doesn't serve the longterm liquidity of these prediction markets well to have people lose their money and interest forever. So remember, keep each play to 4% or less. The more you are a proven winner (a track record of profits doesn't lie), the more you can put at risk.

Race of the tortoise, baby.

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