Are poker game strategies useful in trading on the stock market?

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Dhembhe

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A stockbroker, like a poker player, works with odds and must know when to invest and when to leave a business, but how far do the similarities between brokers and players go?
 
Nafor

Nafor

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It is an interesting thought but I assume they are more separate than related.

In both worlds you are acting with limited information,
some financial instruments are more high risk (like turbos),
and others are safer and slower (like MTT's with 20min levels),
but I wouldn't stretch the analogy further than that.

One broker hardly commands such a big stack that he could bully others around in the market.
 
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fernandofcp

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I liked your question, but I think they are different strategies. Poker players are just players. Stock market investors are just investors. Profiles and behaviors in actions very different from each other.
 
makisaa

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Interesting question, because strategies of poker games have to do with numbers and maths which are needed also in the landscape of investements. Anyway they are different things because poker has to do with our decisions, but stock market has to do with others's decisions which you must learn and then make your decisions and your moves.
 
FoxMS

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A stockbroker, like a poker player, works with odds and must know when to invest and when to leave a business, but how far do the similarities between brokers and players go?


I think these two directions are very similar. In trading, as in poker, only patience, discipline and risk management can allow you to become a successful professional.
 
NWPatriot

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A stockbroker, like a poker player, works with odds and must know when to invest and when to leave a business, but how far do the similarities between brokers and players go?

Interesting. I think there are parallels (rather than similarities) that can be drawn between poker and the market.

Stock fundamentals = hand ranges: while we would evaluate the financial fundamentals of a company or fund, before deciding whether to invest, we also evaluate our starting hands numerically, before deciding whether to enter the pot.
Risk level: higher risk can mean higher rewards, but can also result in a quicker loss of capital. Understanding our risk is always important.
Selling interest = folding our hand: knowing when to get out of an investment or a hand is important to manage our losses. We do not need to wait for a company to dissolve in order to get out and we don't need to invest all of our chips before deciding to fold.
Variance: we have no control of the company or the fund we have invested in, we merely watch and react. We also cannot control the cards that come, we can only watch and react.

I do like think of each hand as a separate investment, rather than just a game. This allows me to think a little more critically about it.

Good luck and God bless.
 
Rob Hobson

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Considering the hesitation for the greed, yes!
 
GARCIA PABLO DANIEL

GARCIA PABLO DANIEL

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hello

if they have some similarities, poker is like life is making the right decisions for better or for worse!
 
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