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Old 08-22-2007, 08:52 PM
ira1313 ira1313 is offline
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Join Date: Aug 2007
Posts: 3
Default Re: Poker and Stockpicking

[ QUOTE ]
You're trying to compare poker to stockpicking. I would specify stock trading over stock investing when trying to draw parallels with poker.

I assume you'll be using some sort of broad stock index as a comparison for risk-adjusted ruturn, but you'll be better to use individual stock traders' accounts versus individual poker players' accounts.

This info will be very difficult to obtain, and then how will you select whose accounts (and a standard account size) to use?

[/ QUOTE ]
I'm doing this on an individual basis. I realize that if I wanted the best experiment, I would have numerous traders and poker players accounts data, but it is not possible for my situation. I am in fact using my own trading and poker account not a index.

The problem I find is trying to compare poker and stock returns in a statistical sense. Say I double my money in poker, but it takes considerable more risk, as opposed to gaining 10% in stocks, but taking far less risk. Which one is better, and how do I determine that? Obviously, some people can withstand more risk, but if I were to be able to take the risk to reward on stocks compared to poker in my experiment, and do it a million times, which would produce the best returns? Often times if you can double your money easily, it also means you can go broke easily, but if I double 60% of the time and go broke the other 40%, it's a pretty good return over the long run.

Essentially what I am trying to determine is, Taking both risk and potential returns into consideration from a statistical stand point which will make me more money, if the test was run millions of times.
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