Published 10 months ago • 4 minute read

From Day Trading to The Poker Table – Similarities Between The Two Disciplines

Though professional stock market traders may balk at being compared with gamblers, there are many similarities between the two disciplines and understanding the intricacies of trading can help increase the chances of success at casinos. By the same token, trading is just another method of generating revenue (unlike long term investing) and understanding the science behind gambling can lead to more successful trading.

Getting a good knowledge of the rises and falls of bitcoin and poker takes plenty of dedication, hard work and patience. Both poker and bitcoin can be very unpredictable, with investors and players both losing out when it is least expected.

Similarities Between Bitcoin Trading and Poker

Key Similarities

Generating money and cryptocurrencies

Individuals who gamble will do so for a combination of entertainment and fun, but also as a way to make money (at the very least get back what they have put in), and trading on the stock market is popular as, if done skilfully, it can lead to huge returns on investment, and both have individuals who make a living out of playing poker and/or trading.

Cryptocurrencies, previously the remit of tech savvy traders, have become more commonplace as casinos have moved online, and players are now able to place bets with, and withdraw, cryptocurrencies such as Bitcoin, Stellar and Nano.

Playing the odds

Both poker and trading involve playing the odds. Players in a casino will look at ways to improve their odds, much like traders. They will for example, look for games that give them an edge, or with a low house edge, and invest in learning the game and increasing their skill and knowledge of the game.

Decision making and working under pressure

In both disciplines, decisions have to be made fast, and often under pressure; the more money at stake the more pressured the decision. Players and traders need to be able to think logically and keep a cool head.

Discipline and self-awareness

Individuals need to know when to stop. Not every poker player will play every hand, just as not every trader will take every deal. Knowing the material, the context, and what other people are doing is key to ensure success.

Risk Management and strategy

Successful players and traders manage their resources efficiently, and do not over-extend or risk money they cannot afford to lose (or worse still that they do not have!). Most have strict criteria and will know when to bow out whether they are winning or losing. They will also have a strategy in place, such as only playing certain hands in poker, or certain set ups in stocks.

Patience

Patience is key to both endeavours. Having the ability to sit on the side-lines waiting for the right set of circumstances is an important skill for both poker and stock market trading. The aim is not to play every hand, but to make money, and limit losses. Additionally, both poker and trading give better results over the longer term (although one good hand or lucky trade may generate a quick win, this is not the norm!), hence poker tournaments tend to take place over a number of days, and trades can go back and forth several times before leading to a net gain. For this reason, a small, short term loss, is not necessarily a huge issue for either, as long as there are strategies in place to counteract this.

Self-Control

Losing self-control and letting emotions take over can be detrimental to both poker and trading. The most successful poker players and traders are those who are able to remove all emotional attachment and investment and look at the situation objectively and in line with pre-set strategies and criteria. In poker, becoming emotional may lead a player to go all in with a weak hand, or a trader to overcompensate a loss with a risky manoeuvre.

Know your opponents

This mantra holds true in life, but specifically in poker and trading, knowing what (or who) you are up against is a cornerstone of success.  Whilst in (live) poker, picking up on visual cues and body language is easier, players can, when online, build a picture of their opponents betting habits. Equally, advances in technology can allow traders to identify market trends and flows in buying and selling.

Risk and Rewards Assessment

Traders don’t invest their money randomly: they will research the market conditions, the company, look at accounts from previous financial reports, as well as keep up to date with the news to see if any market movement will impact the value of a company. They will make calculated risks on when to buy and sell. Poker is much the same: players will learn the game, learn the odds, and will not simply play cards randomly in the hopes of winning, but will make calculated assessments based on the win percentages and behaviour of opponents.

Final thoughts

Poker and trading have much more in common that at first meets the eye. They both require commitment and skills to be done well, and those at the top of their game share many similarities, and there are many key skills that can be transferred into daily life. People who take calculated risks, are patient and committed to their craft are often able to carve out a modicum of success in life.

***

DISCLAIMER

The views, the opinions and the positions expressed in this article are those of the author alone and do not necessarily represent those of https://www.cryptowisser.com/ or any company or individual affiliated with https://www.cryptowisser.com/. We do not guarantee the accuracy, completeness or validity of any statements madewithin this article. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author. Any liability with regards to infringement of intellectual property rights also remains with them.

Comments

No comments yet... Start the conversation!