Trading and Poker

[geline]

IMO, trading and poker can be considered financial 'games'. Games where insights into the human nature and into our own emotions are crucial.
The trader/player knows when it is time to push hard and time to retreat. Some of the traits that have to be developed if one aspires to succeed in the long run are alertness, relaxation, detachment and other complex mental traits.

[bobia]

Originally Posted by geline

IMO, trading and poker can be considered financial 'games'. Games where insights into the human nature and into our own emotions are crucial.
The trader/player knows when it is time to push hard and time to retreat. Some of the traits that have to be developed if one aspires to succeed in the long run are alertness, relaxation, detachment and other complex mental traits.

I play alot of poker and I can tell you that managing risk in both trading and in playing poker are very similar. As a poker player you start with a bank roll and with that bank roll, your goal is to make it bigger (obviously). In trading, you also start off with a bank roll and your goal is also to make it bigger. The question is how do you manage your risk? How much exposure do you take so that you have a chance to increase your bankroll but at the same time prevent yourself from massive losses. In poker, I can control my skill all I want but there is still never a gaurantee I will win. The same is true with the Forex. You can be a very talented trader but there is never a gaurantee that your trade will win. This is where money management comes into play. I've learned a great deal about managing risk through poker and it has definitely helped me transition into the forex.

[geline]

Thanks, bobia, I believe they are really similar in most ways. In both ways, you invest and in both ways, you depend on luck most of the time. I think it is better to learn about money management if this is the case so that you will not end up being very addicted to the trade and lose all your hard earned cash.