I don’t even know what that means.
There are number of similarities between forex trading and Poker playing and due to this some say it is a gambling but I don’t think so. There are many financial institutes and banks are in forex market and it is related with economy.
In trading, there are no rules at all for the trader to obey.
Everything is defined by the trader.
Its quiet different from Poker or any other games & even gambling. But to win consistently a trader need to make rules, follow rules, strategies that are similar to games & money management similar to gambling. Am I Right?
Both of dem can win. It depends on their S/L & T/P.
i.e if guy1(long) was looking to get 10pips with 6pip S/L & guy2(short) looking for 60pis with 20pip S/L.
the pair can go higher say 15pip & then reverse & if goes down enough, both of then wins.
Both are very similar in terms of risk management and capital preservation.
Money Management is different.
Marginal for gambling
Anti-Marginal for FOREX
And you cannot bluff in forex. Either you get clobbered or you win. You cannot bluff your way out of being clobbered by the market.
A friend and I were discussing this topic the other day. He is an intermediate trader, stocks mostly but learning forex.
My opinion is this:
Trading is no different than anything thing else when it comes to a gamble. Everyday we gamble in life to some degree. But it is different than going to a casino with a few $'s to just have fun, unless that’s what you want out of it. Goal is to make consistent money by developing and using your own [I]simple[/I] system that works best for [I]you[/I].
I use only 2 indicators; Ichimoku clouds and MACD along with chart notes and price movement, and it works for me, but may not work for others.
Luck, as we all know, does have a lot to do with it, but not as much as what you learn and by [I]doing[/I].
I view trading as a fun, simple and an enjoyment everyday; so far, I have been successful having fun. Great way to spend everyday :35:
Have a great weekend fellow traders!
Hi ForexMnstr.
Ive been trading for quite some time now. Joined this forum a while back to get the newsletter but never actually made any comments except for now.
This is a good site for sharing ideas an opinions, and even when the so called (pro trader or not) dont agree with an opinion, it really doesnt matter. All that matters is you know what works for you and what doesnt.
As for the topic of this thread, yes, I think trading the FX market is similar to Texas Hold’em Poker. The similarities can be defined in a variety of ways, depending on how one looks at it (perspective and content).
Firstly, as a Texas Hold’em player and a trader, I can say that neither can be classed as ‘gambling’. Roulette is more of a gamblers’ game, as it relies a little on statistics and very much on luck. Do you know of any consecutive Roulette or BlackJack champions? With Poker however, there are pro’s who win consecutively at it.
Look up Poker Hall of Fame - Wikipedia
My point being; eventho there isnt an actual science to FX trading or TH Poker, with patience, temperament and a good understanding of statistics with Poker and Fundamental and/or Technical Analysis with Trading; one can capitalise in either field.
I started to see the similarity a while ago. This was the first picture that came to mind:
Dealer = Broker
Rake = Spread
Players = Traders
The (NDD) broker is like a dealer, as in he/she doesnt care so much if you win or loose, as long as they get their cut on each trade or hand you play by paying the spread or rake. The game is just a deck of a fixed set of cards or the exchange rate of currency pairs, both of which you can try to predict the outcome based on statistics, probability and logic. Hence, although the game/activity can be heavily influenced by luck, one will only win at it consecutively if he/she has the right set of skills and knowledge.
Thanks for the thread.
Just try to bluff the market lt will eat you alive. Bluffing in Poker is a meaningful profit center.
Gino
Good for you :35:
for me poker is more fun and i only play it on weekends … trading forex is more serious …
Thank you very much Scalper :60:I agree with each and every word youve said above … nice resemblance …
In my opinion scalping the market is the way you can bluff it … but the way the market bluff us is when there is aretrace …:o
With real poker you meet people with internet poker you are a forevefalone geek, same as forex.
I think trading forex isn’t similar to being a proffesional poker player.
If you play poker you have to stay hours in front of your computer. If you’re a scalper or intraday trader it’s the same for Forex traders, but if you’re a swing trader or long term trader you can spend very few time in front of your computer. I am a swing trader and use mainly the daily charts. 30 minutes/day is enough to analyze the daily charts. Compare that to 8-10 hours of playing poker. You can also have a job if you’re trading forex, if you play poker professionaly you can’t have a job. In poker you can’t even have normal weekends because in weekends there are more fish at the tables. Forex market is closed during weekends (even scalpers will have normal weekends).
Let’s say you want to trade forex for a living. You can learn all what you need to become a professional trader on demo accounts. You can spend, let’s say a year only on demo accounts until you master the charts and then deposit $ 100 000 and start to win money on true accounts. Try this with play money poker tables. It’s a huge difference even between play money and 1cent/2cent. In poker you can crush 50NL and want to move up. You play 200NL and lose all your money because you can’t beat the game anymore. In forex if you’re winning with $5000, you will also win with $10 000 or $100 000. The more money is envolved in poker the tougher the games are and the better you must be. In forex you don’t have to be better to move up. You only need a bigger bankroll and you can use the same strategies you used on demo account. Huge difference!
Last but not least, the online poker games are so tough today that it’s a lot easier to be a winning forex trader than a winning poker player.
Disagree. It’s two different ball games and mindsets altogether. While some psychological principals are similar, they differ enough that you can’t equate the difficulty of one over the other.
I also take issue with pokkerface’s statement above with regards to the difficulty level of forex. As pokerface stated, In poker the lower tables are easier due to who you play against. At some point in poker you play against opponents who require you to change the way you play to compete. The level of play gets better on the higher $ tables because many of the opponents are better capitalized, have better discipline and understand the mechanics of play as well as how to play their opponents.
In trading you are always playing against players at final table level. There are no easy currency pairs for beginners. In forex the counterparty to your trade 99 times out of 100 is a professional who has their edge and risk management all lined up. By contrast, most rookie FX traders have no strategy and really poor money management, pushing the odds in the favor of the professional.
The trading beginner right out of the gate is playing against competitors who have better strategies, better discipline and better capitalization. To overcome these advantages, the beginning trader needs to become a professional trader - one who has a professional edge-based strategy that takes advantages of market inefficiency (just as the professionals do) with iron discipline and using small position sizes to have a chance to succeed.
Yes, but you can learn how to trade on a demo account. You can’t learn how to beat even micro limits like 25NL on a play money account. I didn’t say it’s easy to become a winning trader but in forex it’s possible to learn for free how to become a good trader thanks to demo accounts. In poker this is not possible.
No. You bluff to fool your poker opponent to fold when you have nothing. You cannot bluff the market in any shape or form.
So true, the market is what it is, and although I have fun, I take my trading very seriously, cause if I bottom out, NO retirement :8: My buddy and I took our sig others on vacation 2 years ago, and mine and his played carps for the first ever, had no idea what to do, and they did better thank he and I, go figure, but that wouldn’t happen in trading (for them) though, don’t think. I swing trade, but have for 15 years so I use stops when needed. I shorted the aud/usd the other day right before it’s cliff, and wound up with more than expected, while asleep, that was a little luck, however, gave some back on the usd/jpy pair, but overall good. I play casino games from time to time, but not for expected financial gain, I would go broke. my pop say’s trading is gambling cause you can’t predict the future or we would all be rich, which is true, but that’s the case with anything. I’d better better at trading than trying to write an app for the Iphone, that’s one future I know won’t happen Like the old saying, nothing good lasts forever, neither does bad. Have a great week guys/gals.