Trading vs. Poker

Discussion in 'Professional Trading' started by jk90029, Apr 21, 2015.

  1. cornix

    cornix

    Of course poker does have commissions, aka rake.
     
    #41     Apr 26, 2015
  2. cornix

    cornix

    Right. Easier to make money when you don't do it by taking it from someone not willing to give it to you.
     
    #42     Apr 26, 2015

  3. Maybe you are talking about rake in biggest poker room(data at least 5 years ago)

    Commerce(243 tables, 2400 employees) commercecasino.com
    5 tables of $20/$40 LHE $1+$4, free meal
    4 tables of $40/$80 LHE $1+$4, free meal
    8 tables of $200buy ($3/$5) NLHE $1+$3+$1, no free meal, rebuy up to $300
    110 tables of $400buy ($5/$10) NLHE $1+$4+$1, free meal, rebuy up to $600
    3 tables of ($600<buy) ($10/$20) NLHE $9/HH, free meal, no jackpotdrop

    LHE stands for limit Hold'em and HH for half hour.
     
    #43     Apr 26, 2015
  4. cornix

    cornix

    There's rake in every online poker room or offline poker room, otherwise there's no economical reason to do that for casino. That effectively is commission.
     
    #44     Apr 26, 2015
  5. No objection. Poker is similar to trading, in the sense of rake and commission.

    In the long run, more than half goes to the two if you do those often, IMHO.
     
    #45     Apr 26, 2015
  6. Fundlord

    Fundlord

    I think great traders make great poker players. Great poker players don't always make great traders.

    A number of guys in the NFL can run under 10.3 100m sprint which would be pro sprinter level and would dust most college level sprinters. Usain bolt wouldn't last long on the football pitch.

    Similarly I think more things from trading are applicable to poker, than poker is to trading.

    I know a guy who cleans 1000$ a week playing 10$ buy in poker tournaments and he lost 1k$ trading, couldn't get a single profitable trade for some reason.
     
    #46     Apr 26, 2015
  7. In trading equity, it is very hard to lose a lot too. Because one knows how to lose fast, then he better to short the same symbols at the same periods. Of course comission is important.

    In either way, my guess is that total commission might be more than half of his original seed, in the long run.
     
    #47     Apr 26, 2015
  8. Jakobsberg

    Jakobsberg

    If you trade long enough and are successful the fees can be multiples of the seed but so what if its a small percent of each transaction?

    If i turned 1000 usd into 100000 usd would i really give a XXXX that i spent 2000 usd in fees? not me.

    JK - your on ignore for stupidity.
     
    #48     Apr 26, 2015
  9. Suppose we have a seed of 10K. Each time you pay $1 like in IB, so that buy/sell costs $2.

    Each day if you trade 30 times, for 60 dollars everyday. For roughly 240 days in one year, annual commission have total of 240*60=14.4K.

    Therefore if you reduce from 30 to 10 times, then annual expense is 4.8K

    For your entire life, from 30 to 80, you can trade roughly 50 years. It means that IB is potentially expected to take your 4.8K*50=240K, which is roughly your home price.
    That is why most traders do not have home with no mortgage.
    What is the median home price in each states?

    Furthermore, you shall pay cap gain tax (if you win in that year) in 1040 every April too.

    *************

    You can change seed amount and frequency of trading, on your own situation.
    Please draw a big picture, like for 50 years of lifetime.
    For the past, find out all the annual commission and tax in last 10 years, if you started trading 10 years ago.
     
    Last edited: Apr 26, 2015
    #49     Apr 26, 2015
  10. Daal

    Daal

    Poker players tend to have bigger egos (due being more of a people game, you get to be "superior" to your opponents and "crush" them, this doesn't happen in the market as you tend to beat a ticker rather than a person). Bigger egos tend to get punished in the markets because the market is what is called a "continous process", if you don't actively close out your losing position you can lose forever and even owe money. In poker and gambling in general there is usually a point where the betting stops by itself (you lose all your chips, the sports game you bet on ends and the bets are settled, etc), it whats is called a "discrete event". You have to actively rebuy or bet again, in the market, most bests are forever if you don't close it. This leads to flaws in discipline or ego based mistakes being punished more severly
     
    #50     Apr 27, 2015
    Jakobsberg likes this.