Yesterday, someone asked me why I use so many poker comparisons.

So today I’ll explain… 2 reasons actually:

The first is I’ve only recently started following the growing popularity in poker.

Not being a gambling man myself, I used to shy away from the game. (I never saw trading as gambling, so that didn’t count in my mind.)

But after closer inspection I started to understand that unlike most casino games, poker wasn’t based on sheer luck… and instead was very closely related to trading.

You see, with the popular game of ‘No Limit Texas Hold Em’, after getting dealt a pair of cards you decide whether you will bet or not.

That’s essentially the ‘trade setup’. After the market gives you something, you decide whether you will enter into a trade.

What transpires with the additonal cards is equivalent to how the market unfolds after your entry. You decide whether to see what happens (check), add to your positions (bet more) or close out the trade (fold).

What I really found of great interest is how the emotional discipline of trading carries over to poker almost seemlessly. And it’s only now that I realize why so many traders reference gambling analogies… and why many of the traders I know are avid poker players.

The second reason I’m writing more about poker, is because it gives me a legitimate excuse reason to watch hours of poker

You see, when I’m plopped down in front of the TV watching hour after hour of poker tournaments and my wife asks me, “Are you busy?”, I can respond, “Yes, I’m busy… can’t you see I’m working?!”

Continued Success!

Ray

Categories: Trading

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