Thursday, February 9, 2012

Friend Wants To Invest $1,000 - I'm Not Excited About It

money magnet

I met an old friend for lunch today. During the conversation, I mentioned to her how my poker business is doing. That so far, I think it is possible to make 50 percent ROI each month.

I saw that she was interested as she was asking a lot of questions. Eventually, she asked, "Can I invest in your business?"

Can you afford to lose?
If she asked me this question a year ago, I would have jumped at the opportunity. Today, I am a bit apprehensive about taking investors for my poker business. One reason is that I am going to pressure myself to get good results. That is frustrating and I don't work that way.

I mentioned to her that, if she did invested $1,000, that should be money she can afford to lose. If she was looking to earn income from that investment, then I will not take it.

She said she'll think about it.

Fundamental risk management
I can guarantee not to lose her money--unless another black friday comes around. I have been playing close to half a million hands. Law of averages tell me that I have a winning system at the levels that I play, and that the margin for error is less than one percent.

If you have been following this blog, you know how I call it a day after losing a stack or two in any of the sessions that I play. And when I see a reversal pattern in my win rate chart, I take a break. That's how I manage risk.

Anyway, my friend said she is going to get the money in about two weeks. She knows me too well that I am not going to lose all her money. Even with the disclosure that I gave her, I think she is going to proceed with the investment.

I am not happy about it, but let's see what happens. Maybe this is synchronicity telling me something.


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