Originally Posted by
Alan Mendelson
I've been thinking about this statement by arcimede$ -- "optimal play isn't a long term strategy."
This is a very interesting comment because it applies to things besides video poker. For example, it applies to the stock market.
Decades ago the basic advice for the stock market was to "buy and hold" but after the crash of 1987 the concept of long term investing in the stock market went out the window. In 1987 financial advisers woke up to realize that the baby can be thrown out with the bathwater and even good stocks can go down. "A rising tide lifts all boats" was a familiar phrase for stock market investors in the 1970s and early 80s, and now we know that a tidal wave can even sink the big boats.
So getting back to the phrase: "optimal play isn't a long term strategy." In the stock market it is best to use "optimal play" which can be defined as research, technical analysis, etc., but be ready to bolt from a stock.
As one of my favorite stock analysts said after the crash of 1987, "your stocks are not your children and they are not members of the family -- it is OK to sell them."
Well, I think the same approach can be made with video poker. When the game is going against you it's OK to stop playing and save your ammo for another day.
So a new question: does an "advantage player" recognize a losing streak and cuts his losses? Or do you keep playing knowing that the math says "your day will come" ??
Some stocks never recovered from the crash of '87, and some portfolios didn't either.