Both are considered as gambling in the eyes of the word...Still there are some striking similarities between them
Poker chips are like Money
Poker chips are limited and valuable much like the money in our trading account. You need them to play the next round or keep playing the current round. Losing them causes pain and the game is about collecting as many as possible
Both the hand dealt & the trade outcome are random
The cards are shuffled and dealt in a random manner with practically no way to predict what the other players hold. The markets like each hand dealt are: Random and Unpredictable
Statistical edge & a game of speculation
Over a period of many games the players can devise a method to play the river and turn in their favor making it a game of odds. Markets are collective behavior of many individuals and tend to follow patterns giving the trader an edge Rock-Solid psychology of the player/trader
Emotions run high whether you have a Royal Flush or just a high card. Fear and Greed are triggered with every tick in the trade and one needs to overcome these evils
Risk vs Reward
You have to risk few chips to see if odds are in your favor to win and how much can you make vs the risk you take. In the end, it’s about losing small and winning big over a long period of time
Bet size
You have to ensure that when you have a monster hand you play it well to gain a bigger lead. This is like capital allocation in trading. A huge winner with minor capital allocation won’t move your account
Survival
End of the day the strongest ones take away all the chips from the weakest ones. The reason why 5% succeed and 95% fail much like any competitive sport
It’s an Art
The observers see and feel that it is easy to gauge a hand and bet, collect that huge stack and walk away a winner. However, it’s the player who know the years of practice and psychological battles he needs to win to make and keep winning!
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