AuthorTopic: Poker and Trading  (Read 669 times)

Offline RE

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Poker and Trading
« on: April 23, 2013, 01:12:47 AM »
OK, HERE is an article outside of Religion which I am CERTAIN will appeal to Watson, who besides being an Incorrigible Fundy is ALSO a devout POKER PLAYER:icon_mrgreen:

Love the Qualities descriptions for a successful Poker Player in the Infographic.  Watson in a NUTSHELL. LOL.

Hat Tip Tyler Durden at Zero Hedge for this one.

RE

               Poker and Trading A Brief Update                         
            
             April 22, 2013 | Author Pater Tenebrarum            
                        
An Interesting Statistic
We have previously written an article discussing the parallels between games like chess and by Discount Buddy">poker and trading. Although we mainly used the opportunity to present a fascinating chess game by Valery Salov, poker is probably a little closer to trading, as it involves things like incomplete information, bet sizing and 'reading opponents', none of which play a role in chess. Recently a representative of tradimo.com (a trading education site) sent us the info-graphic depicted below. It lists a number of famous traders and poker players who are good at both activities as well as a number of characteristics applying to both trading and poker. What really caught our attention though was the statistic right at the end. Apparently the percentage of successful traders is more than three times higher than the percentage of winning poker players. We're not certain how this statistic was arrived at and cannot vouch for its correctness, but if it is indeed accurate, then we admit to being quite surprised (we'd have thought that the percentages would be closer together, near the lower end of the range).

Trading and poker compared, via tradimo.com





One possible reason we can think of for the higher by Discount Buddy">trading success rate may be the persistence of trends in financial markets. For instance, the average bull market in stocks is quite lengthy, so short term mistakes can get 'repaired' when the market resumes its primary trend. Obviously it is not that easy for futures traders, unless they have both very deep pockets and strong nerves Most successful futures traders use stops, but not all of them do. We recall that e.g. among the traders portrayed in the 'Market Wizards' book there was one quite taciturn bond by Discount Buddy">futures trader who was reportedly trading huge volumes, but eschewed stops. Similar to different trading styles, there are also different poker playing styles that can be successful -  however, just as there is a consensus about the usefulness of stops in by Discount Buddy">futures trading, there also seems to be a consensus that certain styles of play in poker are more likely to succeed than others. A common thread is definitely money management and the concepts associated with it. These would be aggression in playing good hands equivalent to 'letting winners run' in trading and 'knowing when to fold' the equivalent to cutting trading losses short.
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Offline Ashvin

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Re: Poker and Trading
« Reply #1 on: April 23, 2013, 05:58:28 AM »
"Judging success by decisions, not results" is perhaps the most difficult thing to do, but very important. Every poker player will experience numerous sessions when they make all the right decisions and still lose money. If you let that affect you too much (it WILL affect you some), then you will be unable to minimize your losses and will go into a tailspin. Never judge your play by the hand's results.

(it's ironic the article lists the "successful" poker players by their total tournament winnings... that could be sheer luck. instead they should list by average cash rate over a large sample size)
 
A factor they didn't mention is BANKROLL - the best players in the world will most likely be long-term losers by over-extending their bankrolls, simply due to variance. Being under-bankrolled also affects a player's ability to make optimal decisions during the game.

Patience and discipline cannot be stressed enough. Winning poker is boring and frustrating. If you're having a lot of fun, something's wrong with your game.

Offline Eddie

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Re: Poker and Trading
« Reply #2 on: April 23, 2013, 06:03:25 AM »
If you're having a lot of fun, something's wrong with your game.

That's a valuable pearl to keep in mind.
What makes the desert beautiful is that somewhere it hides a well.

Online Surly1

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Re: Poker and Trading
« Reply #3 on: April 23, 2013, 06:08:33 AM »
If you're having a lot of fun, something's wrong with your game.

That's a valuable pearl to keep in mind.

A lot of wisdom, poker and otherwise, in this thread.
"Do not be daunted by the enormity of the world's grief. Do justly now, love mercy now, walk humbly now. You are not obligated to complete the work, but neither are you free to abandon it."

 

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