Every trader desires to become a professional. Every new trader must learn while there is hardly any other approach to become professional. And at some point every trader starts to compare trading along with other businesses to locate some valuable ideas or techniques. Poker is often when compared with trading. Many people state that poker is comparable to trading. I have experience of both fields. And I want to write my personal concerning this question.
Trading is really a serious business. And to decide whether it is similar to poker or otherwise not we should compare trading with poker. What is similar and what is different?
The first along with the biggest similarity is in poker along with trading our earnings are not guaranteed. It is rather difficult to get money for the beginner. Trading and poker are serious businesses. But a lot of people consider that these businesses can give them quick money. Many people do not understand neither mechanisms nor rules of those areas. I know many individuals who started trading and lose cash in the little while. I know a lot of people who started playing poker as well as lose all the money. They belief that they'd become rich in the several months. And such thoughts won't allow you to successful trader or player. In this regard poker and trading are extremely similar.
In trading as well as in poker we will need to deal with probabilities. But probabilities in poker may be counted. Though your estimation of poker probabilities is based on insufficient information it is possible to decide poker chips golf ball markers whether your movements are profitable or otherwise. It is difficult yet it's possible.
It is a bit more difficult to estimate probabilities in trading. You must understand trends and identify trends correctly; you must understand movements from the market. And you do not have any numbers. You can not point out that you might have for instance 56% to win cash in current trade. Moreover each trader estimates the market differently. One trader can say that market is nice but other trader can claim that the same market inside the same time isn't good for him. And both may be right since they can have different trading strategies.
The biggest difference between trading and poker is the fact that if you play poker you adopt an obvious amount at the table. You know that if you've $1000 at the table you'll never loose a lot more than this $1000. You can not shed more pounds money than you've at the table. In trading you can lose all your money during one trade. You need to trim your loses yourself. And it is probably the most difficult thing in trading for lots of people.
The greatest trader of times Jesse Lauriston Livermore played poker. We can read concerning this fact in “Reminiscences of an Stock Operator” by Edwin Lefevre. Richard Smitten is the one other famous author who wrote about Livermore. Both authors wrote that Jesse Lauriston Livermore liked to experience poker along with his friends. And he played poker well.
After scanning this many traders know: “Hmmm… If Livermore played poker called the greatest trader I should start playing too and can become the greatest trader as well”. But as I think there is no direct correlation relating to the trading and poker skills.
Poker and trading have similar laws. But it does not necessarily mean you are good trader after success in poker or good poker player after success in trading. Yes, these areas are similar nonetheless they require different skills. Anyway if you're a trader you are able to always try to play poker and judge, can it be similar to trading or otherwise. Your own opinion will be more valuable for you personally.