Poker is a game of skill, gut, confidence and deduction. It is among the most popular options for online casino enthusiasts. Yet, one question rears its head among traders and poker players alike: can playing poker actually make you a better trader? The parallels and similarities are many and easy to define. However, arriving at a definitive answer will vary from person to person, just like trading and poker is different for every participant.
Position trading is one of the most common types of trading, and just like a good poker career, it focuses on the big picture. Where am I going to be in two to five years from now? Well, with position trading, you are willing to sacrifice short-term gains and hold onto assets that are going to pick up.
Most traders are too scared, and they often sell at first sight of short-term fluctuations. Yet, a position trader knows that these short-terms gains are a sign of weakness, and if your analysis is right, you know that at the end of the round, you have a good chance of beating everyone at the river.
The same rule applies to trading. You may not be dominating every day, but your asset portfolio will be developing over time and leading up to impressive overall gains.
Because trading involves a decision-making process made under pressure, poker can give you a healthy mindset to keep calm in the face of short-term adversity and focus on the long-term gains. It is precisely what you should be doing in the first place.
Day trading is another perfectly valid method in trading, and yes, you can benefit from playing poker to optimize your day trading routine. Remember when we talked about “big picture” results? Well, you don’t need these, at least not with day trading. Just like a good, strong hand in your hands during a game of poker, you want to make sure that you are maximizing your daily results.
However, day trading may require someone who is slightly more impulsive and confident at the same time. The main risks of day trading are that you may not be in possession of all information you could have, thus leading to a poor decision.
There are many successful day traders, though, and they are all quite accomplished in what they do. Clearly, impulsivity doesn’t impede skill and understanding, and poker can help you hone your abilities to call out results with success.
If you are looking to advance your understanding of probabilities and mathematically-justified decisions, both poker and trading are perfect fits. The truth is that people who play poker competitive and are from a financial background tend to do better at their daily jobs. It may be not entirely owing to poker. In fact, it could be the other way around.
That is to say that you may be a good poker player because your day trading job is equipping you with the means necessary to succeed. Yet, the synergies are quite evident, and there is no denying those.
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