Two online poker players26 Apr 2020 13:37
Both players have $10,000.
Player one takes his entire $10,000 to play it in a cash game.
Player two uses strict bankroll management were he is only willing to risk 1/50th of his entire bankroll in any one cash game. So he buys in for $200 at a smaller limit cash game.
Poker experts would say that player one is much likely to go bust (probably that night). Conversely they would say that player 2 more conservative bankroll management is more likely to succeed.
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I guess investing in shares that would be the equivalent of a person sticking their entire $10,000 in one company; the second person would be investing smaller amounts in lots of companies.
I'm sure investment experts would say that the person who invested $10,000 in one company is much more likely to go bust.