Saturday, December 29, 2012

The Big Lay Down



Eight hands into a Texas Hold'em no limit tournament. Blinds are fifty and one. There are more than forty players, ten at my table. I've played every hand so far. I wanted to experiment with some more aggressive play, so I decided that every hand I was going to raise/re-raise pre-flop as well as after. I've already won two large pots, and bluffed my way to a couple smaller ones as well. My table couldn't like me less at the moment, I'm being a bully, not letting anyone limp in without paying a price, and the hands I've won I've shown the nuts.

The ninth hand begins and I'm right behind the button. I'm dealt Q6(offsuit). An erratic player, second to act, loud, looking starved and wearing an over-sized red hoody, who has also been playing every hand and whose raises I've been regularly re-raising, makes a bet for two hundred. Three callers, then I re-raise to four hundred. My raise is met by an angry exclamation from erratic Red, who, after the button and blinds fold, re-raises me to three thousand. "You don't just get to re-raise me!" he challenges, the 2 players to his left call, and I call. The Flop come T(spades) J(clubs) 7(diamonds). Everyone checks to me, and I'm not eager to invest more into a no hit hand with an unconditional re-raiser to my left, so I check. The turn is a 3(spades). We all check again to see the River. A 2(hearts) comes and Red bets a thousand. The other players fold, and without a second's hesitation I raise to four thousand. Red's bet stinks of an attempt to steal the pot, and never in a million years am I going to let him get away with it, no matter what I've got. Almost as soon as my four hits the pot Red goes all in. He has my 3,000 remaining chips covered, barely. After a minute of thought, I make the fold and he flips over 64(offsuit). The table gasps. "I see...all you gotta do is re-raise his raise and he folds" somebody says. 

Getting bluffed into a big lay down sucks. I went on to finish 14th (which got me points in the league for top 20) while Red got called three hands later on another all in bluff, but I still drove home thinking of where, when, or even if I went wrong in that hand I folded to him. Here are the conclusions I came to:

  • My experimentation with loose play and aggressive re-raising was interesting, but its better suited to tighter tables later in the tournament when people are trying to conserve chips and survive. Also, my initial success , getting the nuts twice in the first 8 hands, was mostly luck, but that's a whole discussion to itself. If I had been paying close enough attention to get a good initial read on this guy, I should have realized there was little to gain by reraising him, he was going to call or reraise me anyway so I was just investing myself more heavily into a weak pair of cards. 
  • Calling his first three thousand was actually a good decision  I knew he was a loose player who was there for a good gamble. He was more than likely playing junk, and my queen junk beats average junk. The callers to his left were friends of his as well. They knew how he played and they called amid jokes at his past hands. This was an opportunity to relieve him of some chips if I hit the flop. The reality of the moment however was that while I was focused more on Red, it was actually the two tighter callers that I needed to be more focused on. I didn't ignore them at the time, my thought was that they were probably calling with mediocre hands as well, they didn't need much to go up against this guy, but I probably should have been paying closer attention to them then I was.  
  • Red's checks on the flop and turn fit the narrative of him getting three callers on an emotionally charged bluff. The check from his friends fit them calling with mediocre hands and either missing or counting on trapping the raises they were expecting from me. Red had already put his pride on the line so there was no sense in investing more into my nothing hand. 
  • Red's bet was actually a good one, whereas my subsequent re-raise was my biggest mistake. There was less of a chance of getting this guy to fold now than on the Turn or the River. By allowing my own pride to play a part in my decision, holding fast to my new trademark re-raise, I threw away four thousand more chips than I had to. There are two other vastly superior moves I could have made:
1. Fold. A decent option at this point and much better than the one I took, this guy's manhood was on the line and at that point his junk beats my junk 7 out of 10 times.  Just looking at the information I had then, and I still stick to it now, Red had about a 70 percent chance of having a small pair. Since he expected me to have made something decent, and the hand was more about showing me up than actually winning the pot, he probably would have acted no differently with a pair than without, he had no doubt he was beat either way.  
2. All In. That's right, I should have shoved first. This was the genius move that alluded me at the time. He would have folded, even if he had a pair, not because he thought I had a better hand than his (because from my read, he was already certain of that and hadn't folded) He would have folded because my All In move would take away his ability to get what he really wanted. My fold. The whole hand was about him showing that he could make me, the bully in control of the table, fold my hand. Even if he had decided to call, which would just have been strange and pointless, I had a 30 percent chance of winning a huge pot, a gamble I now know I would have won. 
  • Many people might jump to the conclusion that I should have called Red on his All-In shove, however that fold was actually one of my better as well as more clear cut decisions in the hand. It just took me a minute or two to realize it, swallow my pride, and give my Queen High to the muck. 

There is an important general rule of human psychology that is very well illustrated in this hand, and that I fell into, leading to my final erroneous raise. That is the general rule that people assume that others think like they do. Call it the Law of The Assumption of Similarity. We are vain creatures, and it is our habit to assume that our ways are the best ways, and that people are always thinking about the same things we are. A self-conscious and insecure person thinks everyone is judging and watching them because they are judging and watching themselves. A compulsive liar will be continually suspicious that other people are lying as well. Guys regularly assume a statement or action that if directed at them would make them happy, will also make their girlfriends happy. Ya, I hit a nerve on that one (though I'm just as guilty).

When we are confronted with people who have different goals than us, different interests, different ways of thinking, we often get defensive, irritated, judgmental, or even play dumb and try to ignore them. We feel awkward and pressured in groups of people we feel are different from us, and ostracize the black sheep when we are in the majority. In social settings we can get away with avoiding having to account for people's difference's, and doing so is often necessary when the goal is just to have a good time, however when we find ourselves in a competitive environment, where having fun is no longer the matter at hand, we are often clueless and uncomfortable as a consequence, incapable of making the proper adjustments because we never had to make them before.

I had a feeling that was uncomfortably forming in the back of my head through the whole hand as I played. It seemed like a distraction, so I tried to block it out. It was the feeling that the red-hooded character that was staring me down across the table was a radically different kind of person than I was, not better or worse, just different, and that what he wanted most at that moment was something very counter and opposite to what I wanted and not in the usual "I want to win this pile of chips" kind of way. I was sitting at that table to win poker chips, I was not, or was trying not to get emotionally involved in the decisions I was making at the table, each decision was about which path would lead me to winning chips and losing as few as possible in the process.

Because I blocked out that feeling that this guy was different, I fell to the Law of the Assumption of Similarity. I assumed that Red was in the hand to win chips. Yes he had gotten angry at me, yes he had re-raised with what was certainly junk, yes he did regularly play junk, but I assumed these were all strategic acts, ploys to win chips, just as my experimental aggressiveness was a strategic act. When it came time for me to respond to his one thousand bet after the river, I threw four thousand chips into the pot because If I had checked down a hand to the river, after all that Pre Flop betting action had swollon the pot, in Red's position I would have done as he did and put in a thousand or so, to hopefully take the pot and/or see what kinda position my opponent thinks he's in. If I was in Red's shoes and had a small pair like I thought he might, and my opponent, who I already believed had a better hand, responded with a four thousand raise, I very likely would have folded. If my opponent had gone overboard and raised ten thousand, or all in, I might have seen that as desperate and called.

If I had listened a little closer to my gut instead of blocking it out, and very consciously understood from the moment Red stood up and yelled, that he was after my head, he wanted to put me to shame, the hand could have gone much differently. I could have tripled my stack size, eliminated a dangerous and loose player, maintained a control of the table, and gained a formidable reputation that would make other players think twice before trying to bluff me. Good strategies in life account for other people's goals and strategies, not just our own. We should always be focused on accomplishing our goals, but if we don't pay attention to other people and their goals, realizing that they often contrast, rather than mirror our own, we will often see what we think is certain victory slip rapidly into defeat. 

Friday, December 28, 2012

Reality: The Foundation of Strategy

Astronaut Micheal Reed Barratt (MD. , MS.)

How should we go about setting goals for ourselves? Should we just live in our dreams and use our imaginations to decide on what we want in life and how to satisfy those wants, or should we focus on the world around us, it's every detail and nuance, and then set our goals and plan our paths based upon the opportunities we see there?  I chose this as the first idea to explore in this blog because it is such a critical one to anybody who claims to or wishes to be strategic in the way they go about their lives and also to give a taste of what I want this blog to be about.

I'm a student, not a teacher of strategy, my goal for Thinking Strategically is this: to share my numerous thoughts and conclusions on the art of strategy (that have up till now gone into an expanding number of variously sized notebooks) and improve upon them with the help of fellow strategists. In every post I want to paint a picture of an idea as bluntly and clearly as possible, drawing on examples from history, daily life, and the games I avidly enjoy (chess, poker, and few others). I'm always looking to develop a better understanding of reality and how to operate within it, so If I seem like I'm being confrontational or aggressive, that's because I am, and I'm looking for a good debate. 

The more keenly and attentively we observe the world around us, the more opportunities we will discover and the better we will become at setting realistic goals for ourselves that get us what we want. This does not mean we should throw our dreams off a cliff, our dreams are very important, because they guide us towards the right opportunities. Two eight year old boys, we'll call them Roy and George, both have dreams of being astronauts. Roy spends as much time as possible playing with space toys and watching Star Wars, things that immerse him in what he dreams of. George on the other hand takes a step back, and starts poking around his house looking for opportunities he has to actually get into space. Wood? Nails? Tin foil? Dad comes home to find a countdown for take-off going on at picnic table. 

Which one of these boys do you think is more likely to actually end up in space? While building a spaceship out of wood and foil isn't exactly what an astronaut does and it certainly wouldn't have actually gotten him into space, from the perspective of the eight year old kid stuck at home on a sunny summer afternoon, that was the opportunity that had the most relevance to actually reaching his dream, and so he set that as his goal. This is the mindset, stepping back and looking at reality and what it has to offer, that we must always have. 

No matter how much we observe reality, we won't always make the right decisions, set the right goals, or follow the right paths, it may even lead us into trouble, like the trouble George got from his dad for nailing two by fours to the picnic table, but the solution is not to retreat back to the comfort of our dreaming, of our space toys and Sci-Fi movies, but to that much more rigorously examine reality, discovering where we went wrong and what other opportunities we missed or discarded that we should now take. Three weeks after his failed launch, our space ship building eight year old is back to school. His third grade class is visited by astronaut Micheal R. Barratt. During the presentation George learns how much astronauts have to know to be selected by NASA and excel at their jobs. Taking a step back once again, he realizes that to be an astronaut requires knowledge, and that his school is offering him the opportunity to get just that. 

My definition of strategy is this: The art of using the means available to achieve goals in the most efficient way possible. I said this idea of setting our goals based upon reality is critical to anyone who wishes to be strategic, because without it it is impossible to be strategic. Without a grip on reality, it is impossible to set any reachable goals. Our other young aspiring astronaut, Roy, will never be able to be strategic, he will never develop or learn strategies for memorizing vocabulary or solving quadratic equations, because he never set the goals of knowing French or getting a 4.0 in Algebra II. Roy very well might set goals, of winning the lottery or buying a nice car, but he will never reach them unless by luck, they aren't reachable, in fact, they are dreams, not goals, just like his astronaut dream. If Roy took on the reality approach like George, even after years of living in his dreams, he could start actually reaching them. He could examine the opportunities reality was offering him, getting a second job and paying of his credit card, real reachable goals he could develop strategies to achieve and are paths towards fulfilling his dream of buying the car he wants (reality doesn't offer a path towards winning the lottery). 

There is absolutely nothing wrong with Sci-Fi movies, space toys, or Star Wars(I'm actually a big fan), along with a innumerable list of other enjoyable activities such as spectator sports, video games, or TV, but these can easily go from a fun past-time to an anchor that keeps us living in our dreams by giving us short-term fulfillment. Many people may even feel set free by these activities, but they are actually enslaved by an illusion. Being in touch with reality is what sets a person free to use his imagination and creativity to its full capacity. 

The ability to separate ourselves from our dreams, to step back and develop a keen understanding of world around us, and focus in on achieving reachable goals based on the opportunities reality is offering us, is the foundation to thinking strategically. Almost ten years later, George has graduated high school Valedictorian of his class and has been accepted to the Air Force Academy, well on his way to actually achieving what he dreamed of, not by living in his dreams, but by examining the reality of the world around him for opportunities. We must view reality like a drug, we have to have it to survive, we feed off it, it fuels our creative process.  This mind-set, of living in the world as it is, not in our dreams of what we wish it to be, is what is necessary if we are to pursue the art of strategy. It takes great discipline to develop such a mind-set, but in the end there are great rewards.