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Trader-Turned-Gambler Credits Risk Management for Success
June 19, 2012
[ by Melanie Gretchen ]
This former BNP Paribas trader traded his equity-derivatives trading desk for a poker table less than 2 years ago. And just last week, this novice on the Poker Tour shocked nearly everyone by winning the won the World Series of Poker's $10,000 pot-limit hold 'em tournament in Las Vegas. His reward: Cash Prize of $445,899 and a Golden Link Bracelet.
Andy Frankenberger, 39, Professional Poker Player. The former equity derivatives trader from New York City has had an incredible career so far in Professional Poker. In his first year as a professional poker player, Frankenberger was named World Poker Tour (WPT) Season IX Player of the Year and became a World Series of Poker Champion - getting the first of 2 gold bracelets. In its September 2011 cover story, Card Player Magazine described Mr. Frankenberger's debut as one of poker's best rookie years story.
While Frankenberger knows a lot of people think he's just lucky - he would not say he beat the odds. What makes his second World Series victory more remarkable, is that he played the final table across from Phil Ivey - the best of the best.
Secrets to His Success - Cool-Hand Luke and Wall Street. Throughout the tournament, Mr. Frankenberger had nerves of steel - on once occasion he even folded while holding a full house. It was the right bet, because his opponent also had a full house - with higher cards.
"It's all about risk management. If the market goes against you and you're wrong, you get out. A lot of poker players don't know how to do that because it looks weak. I can fold a hand that makes me look weak. I don't care about my image. I care about winning." -- Mr. Frankenberger.
Trading Up. Those who know Frankberger from Wall Street are not fazed by his success. His former trading boss at BNP Paribas, Pascal Leyo, knows Frankenberger too well, noting this about Frankenberger: "He would take as much information as he needed before trading, which is what he does with poker." Mr. Leyo recognized talent in Frankenberger, early on, which is why he poached him from JPMorgan in 2007. Then there's the education and intelligence factor. Mr. Frankenburger scored a perfect 800 in SAT Math, graduated from Duke University with degrees in Russian and economics, and probably countless other accolades. He's a (2-time) winner on the Tour. But he was a winner before leaving Wall Street. Congratulations. [WSJ, 6/13/12]

