Poker Vs. Trading - Time to switch sides?

Written by Trader Maker

If you play online poker then on average you are 10 times more likey to win in the financial markets.

For years it has been a well kept secret in the finance world that poker players have a definite edge when it comes to analysing data and risk. Many trading graduate schemes and recruitment specialists look for young grads with not just a good education, but the ability to deal with winning and losing, manage risk and make the most of opportunities. Poker skills and strategy encapsulates all these things.

When trading the markets, using strategy and sticking closely to rules and a game plan is essential. This is where the experience of playing poker makes the transition to trading a natural progression.

With over $3.7 trillion traded on the FX markets you have to ask yourself, what is the biggest pot I will play in poker tonight?

Here are some Poker Vs Trading comparisons:

POKER
TRADING
Strategy – The systems and rules you put in place to minimise risk and maximise profits
Analysis – Fundamental and technical analysis of information to trade and make profits
Rake – The amount taken out of every pot by the game provider
Spread – The amount taken by the market provider to pay for each trade
Rake back – The amount offered to players for loyalty and turnover
Rebates – The amount offered back to traders for volume of business
Bot - Short for "robot". A program that plays poker online with no (or minimal) human intervention
Black box – A computer algorithm that trades in the markets for profit
Bad beat - To have a hand that is a large underdog beat a heavily favored hand
Swings – To go with the market trend and still lose money
Table - Where you see and play your opponents
Platform – Where you see the market and the prices you wish to trade

 

Recommended Platforms

We recommend anyone who wants to start trading straight away uses eToro.com:

 


x