You are right. It is called trade spoofing,. It is illegal.Then the SEC finds out. You get banned and fined. ("Spoofing is an illegal form of market manipulation in which a trader places a large order to buy or sell a financial asset, such as a stock, bond or futures contract, with no intention of executing. By doing so, the trader—or "the spoofer"—creates an artificial impression of high demand for the asset.")
You welcome Matt. “I find that Poker players realize that they have to give up most cards” This statement is accurate but it varies depending on the game you play. In a full ring 9 handed game you do have to tighten up, but in a 6 handed poker game you can play 20-40% of your hands depending on your playing style and who’s at the table. In a heads up poker game, you should be raising 65-85% on your hands when you are on the button. I have read on ET where a few traders said that if you have a few losing trades in a row you are doing something wrong and a few have claimed to have 1-2 losing trades out of 100 or 1000s. Maybe these traders have found the Holy Grail but this is not a reality for me so having losing trades and occasional losing days is part of business. In poker it’s easier to control variance mainly due to two reasons. 1. If you have an edge being able to get more hands in a much shorter time frame would smooth out variance. When I was playing 20 tables I was getting in anywhere from 800 to 1000 hands per hour so there wasn’t many losing days if I put in a full day of 8-10 hours. With stocks I would be lucky to get in 10k to 20k trades in each year. 2. Unlike stocks, in poker you have the ability to choose the games you play and the opponents you are going up against. If the table is too tough or if I have a good player to my left who is making my life miserable I would leave the table and look for an easier one. Initially I thought I was being smart by choosing easy games but I know now that this was a huge mistake. By choosing easy games and not challenging myself my game barely improved and the game eventually passed me by. So to answer your question in regards to variance, I try not worry about daily results and concentrate more on the bigger picture. What is important to me is knowing that I’m improving as a trader and at the end of the year I’m making more money. What was hard in the beginning is not knowing what kind of a drawdown was acceptable and within variance. Now approaching 9 years as a full time trader, a drawdown of anything more than 3-5% is not acceptable. If I loss anymore than this I know it is not variance but something have changed or I’m making mistakes trading.
Trading Lesson: Why Good Poker Players May Turn into Successful Traders https://www.moneyshow.com/articles/tebiwkly08-48953/
That's nothing I played more than 2 millions hands of poker during years(10 to 24 tables at once) , we accept the variance of the game, putting money when the odds are in favor. The discipline, perseverance, acceptance of the variance, bankroll management, etc are totally useful for trading.
I truly like your approach and your posts about this topic. Thank you for taking the time to write with such details. Also, I agree with you about the quantity of losing trades, and I can add that pros may go through prolonged stagnant periods and experience a large sequence of losing trades. I have worked with enough professionals to see that.
%% I agree; about 97.777%.Trading is not gambling@ all. But since we gambled for $00.25s, in a pool hall,not poker hall; +some commercial traders use quarters/levels........NOT saying quarters were created in a pool hall.LOL [IN the wild west some gunslingers robbed poker games +got shot +some still rob banks+ get shot, so there are the same patterns some times],
In 2011 all of the big poker sites pulled out of the US market so if u were living in the US u can’t play. Family is always first to me so moving wasn’t an option.