As opposed to some video games, where probabilities are tweaked to psychologically hook players, in poker “the probabilities are what they are: they don’t accommodate. Instead, they force you to confront the wrongness of your intuitions if you are to succeed. “Part of what I get out of a game is being confronted with reality in a way that is not accommodating to my incorrect preconceptions,””
This from a brilliant article by a psychologist learning to play poker.
Our beliefs are skewed because small samples don’t mirror large ones, that this leads to the emergence of the gamblers fallacy, but perhaps this bias actually has positive advantages through an internal locus of control and our understanding of luck.
All have clear relevance to investing.
For a full 1 hour podcast from the author – head here.
