Managing Money

It occurs to me that with the current state of Wall Street, corporate fraud and the fleecing of hard working people's 401k's and other pension vehicles, that the "victims" of this fleecing had a chance to defend themselves or avoid being fleeced entirely.

Flat out gamblers, like poker or blackjack players know that to stay in the game you have to have a stake and maintain it.

Conventional wisdom demands that some portion of ALL winnings need to be removed from the game to ensure the long term ability to continue playing.

Does anyone participating in this forum know of any expert gamblers money management books or other materials that detail how to effectively play the statistical odds and remove the correct amount of winnings at the correct time?

Please post any titles or sources of such data.

Thanks for the help.

Best to you,

Steve

dno
> It occurs to me that with the current state
> of Wall Street, corporate fraud and the
> fleecing of hard working people's 401k's and
> other pension vehicles, that the
> "victims" of this fleecing had a
> chance to defend themselves or avoid being
> fleeced entirely.

> Flat out gamblers, like poker or blackjack
> players know that to stay in the game you
> have to have a stake and maintain it.

> Conventional wisdom demands that some
> portion of ALL winnings need to be removed
> from the game to ensure the long term
> ability to continue playing.

> Does anyone participating in this forum know
> of any expert gamblers money management
> books or other materials that detail how to
> effectively play the statistical odds and
> remove the correct amount of winnings at the
> correct time?

> Please post any titles or sources of such
> data.

> Thanks for the help.

> Best to you,

> Steve

> Conventional wisdom demands that some
> portion of ALL winnings need to be removed
> from the game to ensure the long term
> ability to continue playing.

> Does anyone participating in this forum know
> of any expert gamblers money management
> books or other materials that detail how to
> effectively play the statistical odds and
> remove the correct amount of winnings at the
> correct time?

Yep. It's called The Richest Man In Babylon...

"A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first."

"I advise that you take the wisdom of Algamish and say to yourselves, 'A part of all I earn is mine to keep.' Say it in the morning when you first arise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.

"Impress yourself with the idea. Fill yourself with the thought. Then take whatever portion seems wise. Let it be not less than one-tenth and lay it by. Arrange your other expenditures to do this if necessary. But lay by that portion first. Soon you will realize what a rich feeling it is to own a treasure upon which you alone have claim. As it grows it will stimulate you. A new joy of life will thrill you. Greater efforts will come to you to earn more. For of your increased earnings, will not the same percentage also be yours to keep?

"Insure an income for thy future. Look thou at the aged and forget not that in the days to come though also will be numbered among them. Therefore invest thy treasure with greatest caution that it be not lost. Usurious rates of return are deceitful sirens that sing but to lure the unwary upon the rocks of loss and remorse.

"Counsel with wise men. Seek the advice of men whose daily work is handling money. Let them save you from such error as I myself made in entrusting my money to the judgment of Azmur, the brickmaker. A small return and a safe one is far more desirable than risk.

"Enjoy life while you are here. Do not overstrain or try to save too much. If one-tenth of all you earn is as much as you can comfortably keep, be content to keep this portion. Live otherwise according to your income and let not yourself get niggardly and afraid to spend. Life is good and life is rich with things worthwhile and things to enjoy."

The Five Laws Of Gold

• Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
  
• Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
  
• Gld clingeth to the protection of the cautious owner who invests it under the advice of men wise in is handling.
  
• Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
  
• Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

Forget not the rich men of Ninevah who would take no chance of losing their principal or tying it up in unprofitable investments.

Gold wisely lent may even double itself with its earnings before a man like you groweth old. If you risk losing it you risk losing all it would earn as well.

Therefore, be not swayed by the fantastic plans of impractical men who think they see ways to force thy gold to make earnings unusually large. Such plans are the creations of dreamers unskilled in the safe and dependable laws of trade. Be conservative in what thou expect it to earn that thou mayest keep and enjoy thy treasure. To hire it out with the promise of usurious returns is to invite loss.

Seek to associate thyself with men and enterprises whose success is established that thy treasure may earn liberally under their skillful use and be guarded safely by their wisdom and exerience.

Better A Little Caution Than A Great Regret

What a Great Idea!THE most important, life-changing, business and money making idea you have been searching for could be within the pages of THE GREAT IDEAS LETTER... Click here now! to find out more.

Kids and Cash - Ken Davis and Tom Taylor 1979 Oak Tree Publications

To quote:
"According to Nelson Rockerfeller, the one time Vice President of the United States, his father John D. Rockerfeller, Jr, gave each of his five sons an allowance "We got 25 cents a week, and had to earn the rest of the money we got." To earn part of that extra money he raised vegetables and rabbits........"We always worked. All the boys were required to keep personal daily account books. They were required to give 10 percent of their income to charity, to save 10 percent, and to account for all the rest." They had to balance their account books every month and to be able to tell what happened to every penny they earned."

Robert Allen has this to say:
"It seemed every successful money manager I interviewed was scrupulously meticulous about knowing where every penny went. And, of course, this was the exact opposite of my personality. Although my father was an accountant, I just didn't seem to be blessed with the same genes. I knew how to spend money really well.....but I couldn't save a dime. One day I woke up and realized that in my business career I had literally gone through millions of dollars in profits and royalties. If I had religiously saved 10% of that income....if I had lived the Rockerfeller rules....I should have had a bank account filled with millions of dollars. But I didn't. I asked myself....of all the millions that had gone through my life, couldn't I have lived on 10% less. Of course, and that's when I started to live this rule."

Notice how the 10% rule is unchanged from The Richest Man In Babylon?


Keep 10% of the Money you make from the ideas in The Great Ideas Letter

The Zurich Axioms - how to risk and win

On Risk

Worry is not a sickness but a sign of health - if you are not worried, you are not risking enough.

• Always play for meaningful stakes - if an amount is so small that its loss won't make any significant difference, then it isn't likely to bring any significant gains either.
• Resist the allure of diversification.

On Greed

Always take your profit too soon.

• Decide in advance what gain you want from a venture, and when you get it, get out.

On Hope

When the ship starts sinking, don't pray. Jump.

• Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.

On Forecasts

Human behavior cannot be predicted. Distrust anyone who claims to know the future, however dimly.

On Patterns

Chaos is not dangerous until it starts to look orderly.

• Beware the historian's trap - it is based on the age-old but entirely unwarranted belief that the orderly repetition of history allows for accurate forecasting in certain situations.
• Beware the chartist's illusion - it is characteristic of human minds to perceive links of cause and effect where none exist.
• Beware the Gambler's fallacy - there's no such thing as "Today's my lucky day" or "I'm hot tonight".

On Mobility

Avoid putting down roots. They impede motion.

• Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia.
• Never hesitate to abandon a venture if something more attractive comes into view.

On Intuition

A hunch can be trusted if it can be explained.

• Never confuse a hunch with a hope.

On the Occult

If astrology worked, all astrologers would be rich.

• A superstition need not be exorcised. It can be enjoyed, provided it is kept in its place.

On Optimism & Pessimism

Optimism means expecting the best, but confidence mean knowing how you will handle the worst.

• Never make a move if you are merely optimistic.

On Consensus

Disregard the majority opinion. It is probably wrong.

• Never follow speculative fads. Often, the best time to buy something is when nobody else wants it.

On Stubbornness

If it doesn't pay off the first time, forget it.

• Never try to save a bad investment by "averaging down".

On Planning

Long-range plans engender the dangerous belief that the future is under control. It is important never to take your own long-range plans or other people's seriously.

• Shunlong-term investments.

Subscribe to The Great Ideas Letter today and secure your financial future

dno
> The Zurich Axioms - how to risk and win
> On Risk Worry is not a sickness but a sign
> of health - if you are not worried, you are
> not risking enough.
> Always play for meaningful stakes - if an
> amount is so small that its loss won't make
> any significant difference, then it isn't
> likely to bring any significant gains
> either.
> Resist the allure of diversification. On
> Greed Always take your profit too soon.
> Decide in advance what gain you want from
> a venture, and when you get it, get out.
> On Hope When the ship starts sinking, don't
> pray. Jump.
> Accept small losses cheerfully as a fact
> of life. Expect to experience several while
> awaiting a large gain. On Forecasts Human
> behavior cannot be predicted. Distrust
> anyone who claims to know the future,
> however dimly.

> On Patterns Chaos is not dangerous until
> it starts to look orderly.
> Beware the historian's trap - it is based
> on the age-old but entirely unwarranted
> belief that the orderly repetition of
> history allows for accurate forecasting in
> certain situations.
> Beware the chartist's illusion - it is
> characteristic of human minds to perceive
> links of cause and effect where none exist.
> Beware the Gambler's fallacy - there's no
> such thing as "Today's my lucky
> day" or "I'm hot tonight".
> On Mobility Avoid putting down roots. They
> impede motion.
> Do not become trapped in a souring venture
> because of sentiments like loyalty and
> nostalgia.
> Never hesitate to abandon a venture if
> something more attractive comes into view.
> On Intuition A hunch can be trusted if it
> can be explained.
> Never confuse a hunch with a hope. On
> the Occult If astrology worked, all
> astrologers would be rich.
> A superstition need not be exorcised. It
> can be enjoyed, provided it is kept in its
> place. On Optimism & Pessimism
> Optimism means expecting the best, but
> confidence mean knowing how you will handle
> the worst.
> Never make a move if you are merely
> optimistic. On Consensus Disregard the
> majority opinion. It is probably wrong.
> Never follow speculative fads. Often, the
> best time to buy something is when nobody
> else wants it. On Stubbornness If it
> doesn't pay off the first time, forget it.
> Never try to save a bad investment by
> "averaging down". On Planning
> Long-range plans engender the dangerous
> belief that the future is under control. It
> is important never to take your own
> long-range plans or other people's
> seriously.
> Shunlong-term investments.