Trading and Poker parallels

wjwskill

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I am relatively new to trading, having a few years of online poker under my belt are there other people out there who have successfully moved from a successful poker spell to trading? For all of those interested. I played on PokerStars, multi-tabling 5 $27 sit-n-go's at a time, with one $60 45 player Turbo and usually playing the Poker Million every Sunday. Playing about 28 - 40 hours per week I was making and am still making good money, but want to emulate my success in trading.

Any success/failure stories would be helpful!
 
I've dabbled in poker. The only link is from bringing across good money management skills and assessing degrees of risk. One difference is that I don't think luck comes into trading at all. You can have a blindingly good hand while an opponent has a crappy hand only for the opponent to draw one card that had a 1% chance of being drawn and winning when you'd put all your money down, which you could call bad luck, I don't think this has a parallel in trading. I suppose you could have a position open in profit, only for the market to gap down the next day on bad news but that isn't the same as someone taking a MASSIVE risk in order to take your money from you.
 
The Stock Exchange Explained


Once upon a time in a village, a man appeared and announced to the
villagers that he would buy monkeys for $10 each.

The villagers seeing that there were many monkeys around, went out to the
forest and started catching them. The man bought thousands at $10 and
as supply started to diminish, the villagers stopped their effort.

He further announced that he would now buy at $20. This renewed the efforts
of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to
their farms.

The offer increased to $25 each and the supply of monkeys became so little
that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at $50!
However, since he had to go to the city on some business, his assistant
would now buy on behalf of him.

In the absence of the man, the assistant told the villagers.
"Look at all these monkeys in the big cage that the man has collected.
I will sell them to you at $35 and when the man returns from the city,
you can sell them to him for $50 each."

The villagers rounded up with all their savings and bought all the monkeys.
Then they never saw the man or his assistant, only monkeys everywhere!

Now you have a better understanding of how the stock market works.
__________________
juanbyte


&


a simple experiment might help me make my point. Next time anyone gets the ‘urge’ to take a position in the market just stop for a moment. Bring up a chart or two of the relevant instrument. Now place yourself in two scenarios and answer the following two questions

1 ) Imagine that you have recently gone long in this instrument – where would you place your stop?

2 ) Imagine that you have recently gone short in this instrument – where would you place your stop?

Once you have identified the two stop areas you have identified an area where taking a trade is of much lower risk.

It is of lower risk because you have found an area where temporary price deflection is likely to occur. In those areas the 95% are flushed out of their positions purely due to price – this is where you can step in. Obviously, if you have supporting volume as well then you are more than likely onto a good thing.

By Steve
 
I'vw never understood the analogy with trading. Maybe someone could point out the similarities.

Poker:

you don't know what your opponents are holding

there is only one winner

you have a strong hand

you have a weak hand

you can win by stronger hands

you can win by weaker hands

you can win by bluffing

strength or weakness (good or bad hand) is determined at random (you don't know what cards will be dealt).

Grant.
 
Trading and Poker parallels

Find the trading star in you ,here at Trade2win.com:idea: :LOL:(for max effect, you gotta say it like all those queer poker players at pokerstars.com, with a LISP,bet they walk a bit sharpish!)
 
Can imagine that there are quite obvious parallels between crap poker players, crap traders and crap buddists actually
 
Finding the helper in me !

Any stories would be helpful!

mmm well, maybe against my better judgement but, afterall its helpful Thursday here at T2W. Once upon a time I felt like a game of poker. I felt like I wanted, no, NEEDED to find the Pokerstar in me. What would that be like i thought?

So, anyhooo I clocked this ad on telly that said "Find the pokerstar in you, at Pokerstars.com" I was shocked! was it a coincidence? after all I was only thinking the day before, that Lisp erradication was completed on earth some years previous. And here I was hearing it on TV that very moment. A beautiful speech impediment. It made my day! Instantly restored my faith of care in the community. It made my day!
I hope this story helps make anothers day too.

Go ahead punk, I'm making your day!


Thank you very little.










(The above post is intended for comical purposes only )
 
As with chess, i dont know how to play poker. Its probably really easy, but i have never been a**ed about learning really.
 
There are certainly similarities - both require discipline and good money management skills to succeed in the long run. Also, both are essentially probabilty based, so short term results are often a result of good or bad luck rather than good or bad decision making - if you make a stupid trade, but profit, you still made a bad decision, same goes for playing a rubbish hand, but winning. Similarly, if you put your money in with a good hand, but someone makes a stupid call and gets lucky, that's a good decision by you - in the long run, that kind of situation will make you money over a decent sample size - if you put on a trade which perfectly meets your criteria (which you've tested and found to be profitable over a long period of time), then there's a terrorist attack or natural disaster which causes a crash, and so a losing trade for you, that was still a good decision - you've no way of forseeing that kind of thing, and in the long run, following a profitable plan will make money.

Summary - obviously trading and poker are different, but the psychological elements - freedom from outcome bias etc. are similar, and since a lot of new traders struggle with this, you certainly have a head start. There's still a lot of work required to become profitable though!

As for bluffing, true that it doesn't come into most trading, but what about tricks that scalpers play on the order book - flipping and that sort of thing, which seeks to directly exploit other traders, rather than just "predicting" a move and taking advantage?
 
As with chess, i dont know how to play poker. Its probably really easy, but i have never been a**ed about learning really.

Like most things in life, it's easy if you play people who are worse than you, but hard if you play people who are better. You could read one book and be able to beat pretty much anyone who hasn't read a book, but thinks they have some sort of innate talent. (Actually, this sounds pretty familiar - how many new traders have you seen who post that they just started trading real money without trying to learn how to trade first?)
 
Well, kinda sounds ok, I guess. But, those guys from pokerstars.com, speaking like that. I would like to find the pokerstar in me, but does it hurt,right up the Gary Glitter ! :?:



Go to Pokerstars.com and experience a pokerstar in you !
 
in poker any hand can be a winner if you play it right
in stocks any share can be a winner if you play it right
 
Well going on tilt certainly happens in both!

The advantage to poker is that you can start at the bottom with the small chip players on the 'learner' tables.

In futures you have only the Globex table with many of the best and great against you.
 
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