The more I think of stock market investing, the more parallels I see with no limit hold'em poker: making a bad decision early in the hand leads to difficult decisions later on in the hand.
The last few weeks have been exhausting. Work projects have multiplied and gone into overdrive, and at the same time, the baby has regressed his sleeping to waking up every 1-3 hours leaving everyone tired and grumpy.
In the background, my stock portfolio has tanked further. I have mostly been ignoring it due to personal exhaustion but also the exhaustion of my funds: there is no spare money to take advantage of any dip.
The more I think of stock market investing, the more parallels I see with no limit hold’em poker. In this case, I had planned to change my asset allocation to increase the cash component (which is technically negative). However, I did not manage to do this before the recent stock market crash. As in poker, making a bad decision early in the hand leads to difficult decisions later on in the hand.
In my case, I can either push through with the asset allocation change which would mean selling at the current market lows – which is unattractive – or waiting out for a better time to re-balance and committing the sin of trying to time the market and sitting with a sub-optimal asset allocation for longer.
For now, my default position is to do nothing and then start re-balancing next year when income starts to roll in again by putting half the income into investments and half to cash and then re-balancing this way gradually over several years.