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Fool and his money

“It’s immoral to let a sucker keep his money.” - Canada Bill Jones, 19th century poker player

Investing has many similarities to poker. For example: A small minority of professionals take the lion’s share of profits. The house takes its cut from all comers with ironclad regularity. Odds allow for confidence, but never certainty - there is no hand that can’t be beaten, no hand that cannot win. Both games are heavily influenced by luck in the short run, yet dominated by skill and consistency in the long run. And success is rarely the result of any one large decision; it is rather the result of countless small decisions, built into an accumulated edge over time.

The typical poker player reverts to the style he or she is most comfortable with in live play. This lack of variation gives the professional an edge (emphasis mine), highlighting the best way to take the amateur’s money. Poker predators usually assign one of three classifications to their prey: Maniac, Rock, or Calling Station. Of these three, the Calling Station is prized as the most reliable source of funds. The Maniac is dangerously aggressive, and often too hot; the Rock is notoriously tight-fisted, and usually too cold; but the lukewarm Calling Station is just right.

A passive aggressive type, the Calling Station has no grasp of strategy, yet feels compelled to participate. He or she is happy to call the majority of bets, rarely raising or taking control of the hand. Analysis is minimal, actions robotic. The Calling Station’s attitude can be summed up as, “I don’t really know what I’m doing, but I’m just glad to be here.” A streak of good cards will occasionally reward this hapless style of play, but odds inevitably prevail over time. The Calling Station thus provides a steady stream of revenue for those who understand the importance of strategy and put it to use.

- Calling Station is what Jones calls a sucker. The bloke is calling you to take his money off from him. Justic Little aptly titles this article as "The Fool and his money"
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