I've been coming across some material over and over again that argues that poker and trading is very similar. I have played Texas hold'em a few times and can see why people see similarities between the two. My question is for those experienced traders who are consistently profitable in the market, Would it be helpful for my trading career to play poker on the side to "practice" my skills. Now I'm not taking about going to to Casino every week and gambling, just play enough to sharpen my skills.
No, it won't. The only people who are able to profit from bluffing in the stock market are the big boys like Goldman when hold up or weigh down a stock and then flip the position. Daytrader's can't do that unless if is a very low volume stock or if you happen to be Mark Cuban.
ignore his ridiculous reply. yes it will help- this game is just odds. folding folding folding folding/ playing face cards/pairs. occasionally u can get lucky on crappy hand/crappy trade.
No way, for poker you have to know the odds, but bluffing is the most important skill. In trading the odds are typically impossible to calculate unless it is an options position, then at least you can calculate a good risk reward.
They are not similar. In no limit, you are actively playing every hand. Whether you are in the blind or not, that is part of the cost structure. To play the hand, you must call and participate with funds. In trading you DONT HAVE TO PLAY AT ALL. And for many, NOT PLAYING AT ALL CAN BE THE DIFFERENCE OF WINNING OR LOSING OVER TIME. I.E. Overactive traders in the long run LOSE.
Actually, that is a very good point about controlling emotions. I hadn't thought about it from that perspective. However, in order the get the same emotional response from a poker game you would have to be playing with some serious money (i.e. 5K plus buy in).
It helped me deal with aggression, uncertain constantly changing environments (flop, turn, the river) and accepting a loss no matter how good my odds were initially ( AA vs 55 on a board with 5 , Q, 7, J,9). Of course there is also joy of crushing to death an opponent face to face , whereas with trading all you get is a blotter ! Also makes you realise that all you are doing is taking money/chips from other people's pockets so you should always position yourself in a way that works on their greed or fear . I do 2 tournaments a week and get dealt about 15-20 hands each tournament, that does sharpen quick decision making and immunises your gut from wrenching.