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the lich

@thelichhh5,443 subscribers

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One of the largest trading firms in the world teaches new hires poker before it lets them near a book. A newspaper brought a camera to the table and sat down to play. The men across the felt are working Wall Street traders. The firm is Susquehanna, which built poker into its training programme decades ago and still runs it that way, on the argument that the card room teaches something no finance degree does. Gunjan Banerji from the Wall Street Journal plays the hands herself rather than interviewing them about it. A green table, a dealer, chips, 4 people who do this for a living. No lecture hall, no slides. The teaching happens between deals, while money is actually at stake. They break it into parts on camera. Risk management first. Then bet sizing. Then patience, which sounds like the soft one and is not. Then reading the person opposite when the only data available is how they behave with money on the table. The section on patience is the one most people skip. Folding is the correct action in the overwhelming majority of hands, and almost nobody can do it for hours without inventing a reason to play. The same failure shows up in a trading account as overtrading, and it kills more people than bad analysis. Then bet sizing, which is where the video earns the watch. Being right about the odds is the easy half. How much you put behind a correct read is the part that ends careers, and they work through it hand by hand instead of describing it in the abstract. The turn is what the traders admit about being wrong. A good decision loses regularly, a bad decision wins regularly, and the only way to last is to grade the process instead of the result. Everything else in the video sits downstream of that. It matters more now than when the firm started running these tables. Every model prices probability in a second and hands it to you for free. Nothing on the screen tells you how much of your account to put behind the number, or what to do after the number was right and you lost anyway. Free on YouTube, produced by a newspaper, filmed at a real table with real hands. The maths is public. The sizing is the job. 1 table. 4 traders. It is in the video.

the lich

62,689 views • 1 month ago

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