Learning poker won’t just pay off in Vegas – it can also help you become a profitable trader! Poker helps you get over short term failure, keep your emotions in check, and develop patience. All of these skills can be advantageous to learn before you begin trading securities.
Poker Will Help You Move On From Short Term Losses
Poker players expect to profit in the long run, but not necessarily on every game or hand. You can make the right decisions to always maximize your chances of winning and still lose money a decent percentage of the time. Mastering this concept of long-term expected value is one of the most critical pillars in becoming a successful trader. Indeed, many traders who fail do so because they are unable to remain disciplined and big-picture oriented in the face of short-term losses.
If you are successful in the long term, you will quickly move on from a loss and focus on the next game or round. In order to continue playing, you must be able to put your previous performances behind you and not let them impact your future decisions at the table.
This applies to trading as well, as you will lose in the short term much of the time. However, you cannot let losses impact your mentality or subsequent trades as you are playing the long game. If your expectancy is positive in the market over a long time frame, you should move on from failure quickly and focus on the next trade. As you need to be able to put the past in the rear view mirror in both instances, learning poker can help you before getting started as a day trader.
You Learn To Control Your Emotions in Poker
In poker, being cool, calm, and collected allows you to tune out the noise at the table and focus on rational decision making. Also, you never want to risk too much during one round based on your reaction from the last, as all bets must be made strategically considering your cards and chips.
Being tranquil under pressure is essential for traders. When trading, you shouldn’t enter or exit a position based on emotion or excitement, as every idea must be thoroughly analyzed before implementation. Those who fail to do so often trade untested ideas or overtrade, which takes them further off course from long-term success. Learning to control your emotions in the heat of the moment through poker can help you become a prosperous trader and avoid losses.
Poker Can Make it Easier to Navigate Markets
When you’re at the poker table, you need to be able to wait for the right hand or for a strategic point in the game before betting too many of your chips. Otherwise, you are just gambling.
Patience is also crucial to trading success. Some traders get jumpy and enter or exit before statistically backed price points become apparent. This leads many to limit their potential earnings and take on increased losses. You must only trade at price points that are supported by your strategies for the greatest chance of prolonged success. Because poker helps you act with patience and wait for strategic moments, it can be helpful to learn if you intend on day trading in the future.
Learning poker is a fun and interactive way to develop skills which are highly transferable to securities training. Having said that, trading securities requires intensive research skills and is generally a less repetitive experience than poker. This is because markets respond to news events and are constantly adapting, whereas poker remains essentially the same. Those who are looking for a fun hobby which may improve their trading will likely find satisfaction in poker, however, nothing can truly replicate the skills needed to succeed in financial markets.