Life
On The Edge : What's My Risk Tolerance?
From a statistical
viewpoint, when you live on the edge you're flying in the
face of a high standard deviation - meaning, much risk.
Because of this, you'll have to come to terms with your
risk tolerance. How much more of your bankroll are you willing
to risk for marginal boosts in earnings?
If you're not comfortable
with a higher level of risk, or if you're playing on a short
bankroll, you'll be better off minimizing your standard
deviation than maximizing your profits.
By avoiding marginal
situations requiring you to put additional money into the
pot when it's a close call, you can play on a shorter bankroll.
Remember: If you're a winning player, you'll eventually
win just as much money - it will just take more hours at
the table.
