In poker, you need to know when to stay in a hand, and when it’s time to cut your losses. Put another way, it’s about figuring out whether you’ve still got outs, or if you’re drawing dead.
We all make these kinds of calculations regularly, whether we realize it or not. It might be about a job, a relationship, a business decision, or even a literal poker hand.
A few months ago, I wrote about whether it was time to panic regarding the price of XEC. I was cautiously optimistic then, but I also noted that maybe that wasn’t a good sign. Here’s what I wrote: “This may not be a good thing since it’s usually only after I feel total despair that we reach the bottom, but perhaps this time it’s different?”