Trading and Poker
Page 1 of 3 1 2 3 LastLast
Results 1 to 10 of 29
  1. #1
    Join Date
    May 2006
    Posts
    126

    Default Trading and Poker

    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.

  2. #2
    Join Date
    Apr 2006
    Posts
    3
    Quote 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.

  3. #3
    Join Date
    May 2006
    Posts
    126
    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.

  4. #4
    Join Date
    Feb 2011
    Posts
    2
    I agree with my friends replies, that playing poker and trading forex are somewhat similar in much ways, but can anyone tell me that being an expert in playing poker may help in trading forex or being expert in forex may help in playing poker. Though both of them are linked with the tacts and risks, so there might be a particular strategy to get along the way. I am fond of both playing poker and trading forex but am not good enough at both, so need your advice, should get expertise in poker or the forex first.

  5. #5
    Join Date
    Feb 2011
    Posts
    47
    There are definitely some similarities between poker and trading, but it is important to point out the big differences.

    1. With trading you can choose when to stay out and when to enter a trade.
    2. With trading you have more control over the outcome of a trade. You can only choose to take the best possible trades. While in poker there is that huge uncertainty factor of what the next card or cards will be.
    3. When you have a good hand in poker and want to hold it until the end and try to win, it forces you to keep risking larger and larger amount of your stake in order to see the outcome. With trading you can set your risk in the beginning, then as your trade goes in your favor you can reduce your risk. As the trade goes in your favor you never increase the risk, you can always reduce the risk. With poker you have to keep betting larger and larger amounts.

  6. #6
    Join Date
    Feb 2008
    Location
    The Caribbean, Jamaica
    Posts
    987
    But isn't poker "gambling"?

  7. #7
    Join Date
    Feb 2011
    Location
    Tampa,Fl
    Posts
    23
    Quote Originally Posted by futuresforex View Post
    There are definitely some similarities between poker and trading, but it is important to point out the big differences.

    1. With trading you can choose when to stay out and when to enter a trade.
    in poker you fold
    2. With trading you have more control over the outcome of a trade. You can only choose to take the best possible trades. While in poker there is that huge uncertainty factor of what the next card or cards will be.
    like trading, poker is an odds game except in poker every hand has a specific mathematical value(example pocket aces are an 80% favorite to win)so one could argue that there is more certainty in poker
    3. When you have a good hand in poker and want to hold it until the end and try to win, it forces you to keep risking larger and larger amount of your stake in order to see the outcome. With trading you can set your risk in the beginning, then as your trade goes in your favor you can reduce your risk. As the trade goes in your favor you never increase the risk, you can always reduce the risk. With poker you have to keep betting larger and larger amounts.
    If you have $5000 in you poker bankroll you can choose to only sit down at the table with $100 or 2% and it would be no different than setting a stoploss in forex

  8. #8
    Join Date
    Feb 2011
    Posts
    47
    When you sit down at a poker table, every so while you are required to post a blind to play. With forex there is no such thing.

    That would be like saying you need to pay half a pip to your broker every time you look at a chart and try to find a trade to place.

    Poker is an odds game, but you will suffer huge, bad beats that are unrelated and divorced from mathematical reality. You get rivered and lose your whole stack.

    With trading if you have a really good trade you can trail your stop up and actually reduce your risk, and not risk your whole stack.

    Just my thoughts, hope it helps.

  9. #9
    Join Date
    Feb 2011
    Location
    Tampa,Fl
    Posts
    23
    Fair point with the blinds and it should be noted that I was never claiming forex and poker to be first cousins or anything.

    But where you say it's an odds game "but" IMHO there is no but, so you lose a few you were sure that you would win it doesn't matter as long as your wins are bigger than your losses and again your stack in any giving game represents a percentage of your account so if you do get rivered and lose your whole stack it shouldn't break you.

    In poker it's recommended that when showing a decent profit that you move to another table and play with the profit and should you go bust then you broke even no harm done

    And yes I have enjoyed reading the viewpoint of someone else who can appreciate the similarities in these fields I myself am just learning. Good day to you sir.

  10. #10
    Poker is ALL about human psychology. It's all about you being able to intimidate people when bluffing. It's also a little about luck and a lot about skill. Same as Forex. Lots' of skill, little luck and good discipline

Forum Sponsors

Similar Threads

  1. How different is forex trading and stock trading?
    By dawsion in forum Newbie Island
    Replies: 10
    Last Post: 04-20-2016, 08:02 PM
  2. Replies: 12
    Last Post: 03-17-2014, 11:52 AM
  3. Swedish trading and taxes.
    By Runqen in forum Newbie Island
    Replies: 10
    Last Post: 03-17-2013, 02:46 PM
  4. Swing trading AND time frames
    By nesmithdj in forum Newbie Island
    Replies: 7
    Last Post: 05-02-2012, 12:34 PM
  5. Replies: 1
    Last Post: 01-12-2007, 01:09 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
"You have within you right now, everything you need to deal with whatever the world can throw at you."
Brian Tracy