It is critical for anyone who is trading crypto to have the best research and information at their fingertips. However, that is not enough. You also need to be disciplined and thoughtful when it comes to trading, especially when the stakes get raised or the market sees some volatility.
Few in the world are more skilled at this than World Series Of Poker champion Annie Duke. Aside from holding one of the coveted gold bracelets given out to winners each year, she has also won the 2004 World Series of Poker Tournament of Champions and the National Heads-Up Poker Championship in 2010.
Duke is also a highly-sought after speaker and consultant in the field of risk management for investors. Over her two decades of experience in this field, she has created a framework that can help everyone from quantitative hedge funds to passive investors understand the risk that comes with investing in volatile industries such as crypto and make tactical decisions without losing their long-term perspective. She also shares some great tips for deciding when you should press a position or strategically close it.
Excerpted from Forbes CryptoAsset & Blockchain Advisor. Subscribe now and save $300.
Forbes: Welcome Annie. Most people know you as being one of the most famous poker champions of all time. However, many are unaware of your prestigious academic background or years of experience as an advisor to some of the most successful investors in the world. Could you please share with us how you got into this industry?
Annie Duke: I started off my adult life at the University of Pennsylvania, doing five years of Ph.D. work in cognitive science. The only reason I didn’t end up becoming a professor is because I got sick, right at the end of that. I needed to take a year off from school, and it was during that year off that I started playing poker. I fell in love with the game and did that pretty exclusively for about eight years. But then in 2002, I got asked by a hedge fund to speak to their traders about how poker might inform the way that they think about risk. I had been thinking about this connection implicitly, but this was the first time that I thought explicitly about the connection between cognitive science, behavioral psychology, behavioral economics and poker, which is a very real world, fast-paced, high stakes instantiation of the problems that these disciplines are trying to tackle. I ended up getting referred out from that original engagement in 2002 and started to give lots of talks, began consulting, and wrote several books on poker, behavioral economics and decision making. Ultimately in 2012, I rolled out of poker and made the consultant work much more full time and continued writing. Today, I’m back at Penn doing research, so I’ve kind of come full circle back into academics.
Forbes: How accurately do you think people assess their investing prowess? What are some of the biggest mental traps you’ve seen in the…