Sunday, March 29, 2009

Characteristics of a Pro

Aside from 'making a lot of money', what characteristics define a professional in any form of speculation? Here is my list:

1. Good bankroll management. You need to play aggressively enough to maximize earning, without taking a substantial chance of going bust.

2. Understanding where your edge comes from. If you can't explain how and why you're going to be able to 'beat' a game, then it's very unlikely that you can beat it in the long run.

3. Good recordkeeping. Keeping records is essential if you want to understand how big your edge is and make optimal size (and type) bets.

4. Avoiding results oriented thinking. You simply can't get caught up in the day to day and week to week swings in your performance. Nobody wins all the time, and as long as you have a theoretical and statistical understanding of your win rate, you should avoid looking at results as much as possible. The ideal player of daily fantasy sports wouldn't even pay attention to the games each day. I have to confess that I haven't reached this state of enlightenment yet!

5. Gaining an edge from as many sources as possible. You can't be satisfied getting an edge from just one source. Pros should maximize their advantage by gaining as many edges as they possibly can - always working to improve statistical models, get better information, and avoid unfavorable situations.

Are there other characteristics that YOU think pros should have?

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