I was in a small 6 hour poker tournament today with 110 other players. (which is why I didnt trade today) During the game, I was reflecting on my poker style and how I can apply it even further to my trading.
Are you a S&R based trader? Do you follow your setups that give you an edge? Do you follow a trading plan?
I normally do fairly well in tournaments. I am pretty stable and conservative poker player but will mix aggressiveness whenever I see an opportunity. One poker insight that came into mind today was based on my style of playing:
LET OTHER PLAYERS MAKE MISTAKES.
As long as you play perfect poker without any mistakes, you will place in the tourneys. After making it to the final table, it is based on psychology, skill, and luck. There are plenty of new fish in poker and in the financial markets. There are plenty of impulse based players, gamblers, no trading plan traders, and clueless traders. MAKE THEM MAKE MISTAKES. If 90-95% of all futures traders lose money, this means that 90-95% traders are making mistakes. Profit from their mistakes.
Focus on only your setups. Learn to filter out the band hands (bad setups) from the high probability hands (good setups). You can have the perfect strategy, system, or methodology. But I think what is more important is DISCIPLINE. The discipline to follow your trading plan/setup and to stay away from the "noise". By taking high probability setups you are playing "good trading." You are letting other traders make mistakes.
Although I still make 5+ traders a day, I realized that 2-3 is really all you need. 2-3 high probability trading setups will put money in your pockets as long as you minimize your losses.
By the way.... today's poker tournament, I placed in 1st. Which is why I decided to write this thread.
