Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

brownsfan019

Trading And Poker Parallels

Recommended Posts

http://www.stocktrading.com/Pokerarticle2006.htm

 

REAL WORLD

 

Gaming Theory

 

Trading And Poker Parallels

 

Risk? Yes. Reward? Of course. But the similarities go deeper.

 

by Don Bright with Darren Clifford

 

 

 

A couple of months ago, I was asked about the similarities between stock trading and what seems to be the new national pastime, poker. Las Vegas is home to some of the world’s best poker players, and Bright Trading is headquartered in Las Vegas. It just so happens that some of the world’s best poker players are also Bright traders. My brother, Bob, made his first fortune playing blackjack back in the 1970s. He took that money and bought a seat on an exchange to start trading options in 1978. Over the last couple of decades, we have always played poker at our family Christmas gatherings (everyone should have a family tradition, right?).

 

Now, for several years we have had a trader named Chris “Jesus” Ferguson in our organization, and I always thought it was neat to have a younger guy with an interesting appearance as part of our team. To prove that you can’t judge a book by its cover, Ferguson has a doctorate in computer sciences. Ray Bitar, our Los Angeles office manager for many years, teamed up with Ferguson and several top poker players to form a new business venture, Full Tilt Poker. Bitar is now the Ceo (of TiltWare LLC.) of what has become one of the most popular online poker sites among serious players.

 

These business and personal friendships have allowed me to look inside the world of professional poker. My brother and I actually sponsored a poker tournament in Anaheim, CA, in 2005, and asked the players who are also traders to share their thoughts about the similarities between the two activities. Here is a listing of some of the basic correlations:

 

attachment.php?attachmentid=7507&stc=1&d=1218576290

 

 

Both professions can be performed from virtually anywhere on the planet (and even “virtually”). Success in either field provides a great feeling of independence, and of course, the financial rewards for both can be great. Let’s explore a few more points:

 

 

1 Tilt. Emotions do not dictate the cards or the price of a stock, but they do affect how we react to them. Being able to stay away from emotions and only play or trade probabilities leads to success in both trading and poker.

 

2 Number of outs. The more ways you have to make a hand, the greater your probability of successes. In trading, the more ways you have to hedge a trade, the more outs you have, and the greater your chances of success.

 

3 Table talk. Institutions are always upgrading, downgrading, and making comments about stocks that they own! Table talk does not change the cards at the table, or the ability of a company to make money. Institutions and players use table talk for deception.

 

4 Capital management. Managing your capital in poker is as important as playing your cards. In trading, not only do you have to manage how much of your capital you will risk on each trade, but also how much capital you will leverage to increase your edge.

 

5 Varying your bets. One of the most powerful tools in any game is the ability to change your bet when you have an edge. This is true for blackjack, poker, and trading. You don’t start a new strategy with 5,000 shares; you work up to bigger trade size.

 

6 Betting for information. In poker, a small bet is sometimes used to gain information about your opponent’s hand. In trading, you may use a small trade to gain information about the presence of buyers or sellers. With both games, using that information is key to your eventual success.

 

7 Pot odds. If the amount of money a player expects to win is worth the risk, poker players will be in pots that they have less than a 50% chance of winning. Similarly, traders will take trades that have a small probability of being successful on the grounds that they will gain a large amount if they are right.

 

8 Know your opponent. Traders will watch how a stock prints a buyer or a seller the same way a poker player will watch the betting strategies of their opponent.

 

9 Play online. With the rising popularity of the Internet, you can always find a game of poker, or trade from anywhere in the world.

 

10 Discipline and patience. Both trading and poker are games of discipline and patience: knowing how and when to play, and then executing to the best of your abilities. For those who excel at one game, there is a good probability you will also excel in the other.

 

Of these points, one of the most important things to remember about both trading and poker is that you must enjoy what you’re doing, do it well, and have some fun while you’re at it!

 

Don Bright is a principal of Bright Trading, an equity trading corporation. He may be reached at don@stocktrading.com.

 

 

 

References

· http://www.stocktrading.com/pokerpages.htm

· http://www.fulltiltpoker.com

· http://www.worldseriesofpoker.com

· http://www.pokerpages.com

5aa70e7bb446a_tlpoker.png.b3bfb1b87f8b4aaab602d8f60ffe0050.png

Share this post


Link to post
Share on other sites

I have no affiliation with Don Bright, but with his discussions on elitetrader, he always takes the high road and provides good info and discussions. If I were to ever get back into stock trading, I would put his company at the top of my list.

Share this post


Link to post
Share on other sites

Very interesting. I open a thread with similar topic.

There are already a site hosting trading tournaments and poker games, running multiple tournaments simultaneously.

 

In this moment, im playing in a DAX tournament to win 50$!

 

Regards,

Share this post


Link to post
Share on other sites
Poker and Trading

 

REAL WORLD

 

Gaming Theory

 

Trading And Poker Parallels

 

Risk? Yes. Reward? Of course. But the similarities go deeper.

 

by Don Bright with Darren Clifford

 

 

 

A couple of months ago, I was asked about the similarities between stock trading and what seems to be the new national pastime, poker. Las Vegas is home to some of the world’s best poker players, and Bright Trading is headquartered in Las Vegas. It just so happens that some of the world’s best poker players are also Bright traders. My brother, Bob, made his first fortune playing blackjack back in the 1970s. He took that money and bought a seat on an exchange to start trading options in 1978. Over the last couple of decades, we have always played poker at our family Christmas gatherings (everyone should have a family tradition, right?).

 

Now, for several years we have had a trader named Chris “Jesus” Ferguson in our organization, and I always thought it was neat to have a younger guy with an interesting appearance as part of our team. To prove that you can’t judge a book by its cover, Ferguson has a doctorate in computer sciences. Ray Bitar, our Los Angeles office manager for many years, teamed up with Ferguson and several top poker players to form a new business venture, Full Tilt Poker. Bitar is now the Ceo (of TiltWare LLC.) of what has become one of the most popular online poker sites among serious players.

 

These business and personal friendships have allowed me to look inside the world of professional poker. My brother and I actually sponsored a poker tournament in Anaheim, CA, in 2005, and asked the players who are also traders to share their thoughts about the similarities between the two activities. Here is a listing of some of the basic correlations:

 

attachment.php?attachmentid=7507&stc=1&d=1218576290

 

 

Both professions can be performed from virtually anywhere on the planet (and even “virtually”). Success in either field provides a great feeling of independence, and of course, the financial rewards for both can be great. Let’s explore a few more points:

 

 

1 Tilt. Emotions do not dictate the cards or the price of a stock, but they do affect how we react to them. Being able to stay away from emotions and only play or trade probabilities leads to success in both trading and poker.

 

2 Number of outs. The more ways you have to make a hand, the greater your probability of successes. In trading, the more ways you have to hedge a trade, the more outs you have, and the greater your chances of success.

 

3 Table talk. Institutions are always upgrading, downgrading, and making comments about stocks that they own! Table talk does not change the cards at the table, or the ability of a company to make money. Institutions and players use table talk for deception.

 

4 Capital management. Managing your capital in poker is as important as playing your cards. In trading, not only do you have to manage how much of your capital you will risk on each trade, but also how much capital you will leverage to increase your edge.

 

5 Varying your bets. One of the most powerful tools in any game is the ability to change your bet when you have an edge. This is true for blackjack, poker, and trading. You don’t start a new strategy with 5,000 shares; you work up to bigger trade size.

 

6 Betting for information. In poker, a small bet is sometimes used to gain information about your opponent’s hand. In trading, you may use a small trade to gain information about the presence of buyers or sellers. With both games, using that information is key to your eventual success.

 

7 Pot odds. If the amount of money a player expects to win is worth the risk, poker players will be in pots that they have less than a 50% chance of winning. Similarly, traders will take trades that have a small probability of being successful on the grounds that they will gain a large amount if they are right.

 

8 Know your opponent. Traders will watch how a stock prints a buyer or a seller the same way a poker player will watch the betting strategies of their opponent.

 

9 Play online. With the rising popularity of the Internet, you can always find a game of poker, or trade from anywhere in the world.

 

10 Discipline and patience. Both trading and poker are games of discipline and patience: knowing how and when to play, and then executing to the best of your abilities. For those who excel at one game, there is a good probability you will also excel in the other.

 

Of these points, one of the most important things to remember about both trading and poker is that you must enjoy what you’re doing, do it well, and have some fun while you’re at it!

 

Don Bright is a principal of Bright Trading, an equity trading corporation. He may be reached at don@stocktrading.com.

 

 

 

References

· http://www.stocktrading.com/pokerpages.htm

· Online Poker - Full Tilt - Crafted by players for players

· Play Online Poker with the World Series of Poker

· http://www.pokerpages.com

 

 

You should write about the model/version on the blog. You can expose it's perfect. Your blog examination should widen your readership.I am really grateful for your blog post. I find a lot of approaches after visiting your post. Great work..

looking for affordable and trusted hosting?come and visit capsa online

Share this post


Link to post
Share on other sites

this is a good read actually makes sense, since i do play poker (as a hobbie) and trade hotforex as well. i find the link quiet interesting, pokwer might be gambling but its down to how you handle it since you are given ht option to cut loses or strike big if you know the numbers. though i would say forex trading can be more complicated since its not limitted to a deck of 52 cards and 9 players if you know what i mean

Share this post


Link to post
Share on other sites

Similarities between trading and poker, in both, you try to make optimal decisions on the basis of incomplete information. Money management (trading) and bankroll management (poker) are very similar - both are crucial to manage risks. Because in both, you have a luck/variance factor, without the right money management even the best strategy can lead to being broke without the right money management.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 19th March 2024. Market Recap – It’s a classic ‘Buy the rumour, sell the fact.   Economic Indicators & Central Banks: The advent of Wednesday’s FOMC decision and the further slippage in Fed rate cut expectations extended selling pressures on Treasuries.   Corporate issuance and the risk-on trades into equities weighed too. BoJ delivers dovish hike: The BoJ ended its yield curve control, ETF buying and the 8 years of negative interest rates and ushered in the nation’s first policy tightening since 2007. Also the bank pledged to continue to buy long-term government bonds. There was little indication of additional hikes, which signalled that this is not the first step of a rapid tightening cycle. RBA drops tightening bias, as it keeps the policy rate at a 12-year-high. The RBA held the cash rate at 4.35% for another meeting, but removed any reference to possible further hikes from the statement. When asked if the RBA had indeed moved to a neutral stance, Bullock said the risks to the outlook are indeed “finely balanced now”. Today: The FOMC meets for 2 days, and will issue its post-meeting statement at 18:00 GMT on Wednesday. Expectations are for no policy change at this meeting, but verbiage will be closely monitored for hints regarding the rate path in the remainder of 2024. Market Trends:   Wall Street bounced but pared its early rally. It continued to shrug off the evolving Fed outlook and instead re-focused on tech enthusiasm. A Bloomberg report that Apple is in talks to build Google’s Gemini AI engine into the iPhone boosted risk appetite. The NASDAQ (US100) advanced 0.82%, after halving early gains. The S&P500 (US500) was up 0.63% and the Dow was 0.20% higher. Nikkei (JPN225) was choppy after the decision but closed 0.66% higher, while Japanese government bond yields fell. Financial Markets Performance:   The USDIndex firmed and held over the 103 mark. It rose to 103.45. The USDJPY lifted to 150.47, with the Yen paring recent gains, despite the hike, as Ueda made clear that the inflation target has not been reached yet. As interest rate differentials between Japan and the United States remain stark, Yen is likely to remain under pressure. Antipodeans: AUD and NZD slid to 2-week lows, i.e. 0.6515 and 0.6050 respectively. Gold eased to $2,153.95 and USOIL steadied at $82. Bitcoin drifted for a 4th day in a row, currently at $64,500, slightly above 20-DMA. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • $PLTR Palantir stock attempting to move higher off the 23.47 support area , see https://stockconsultant.com/?PLTR
    • $DIS Walt Disney stock ascending triangle breakout watch , see https://stockconsultant.com/?DIS
    • $CTAS Cintas stock narrow range breakout watch above 637.64 , see https://stockconsultant.com/?CTAS
    • $BHC Bausch Health stock back to 9.15 support area with high trade quality , see https://stockconsultant.com/?BHC
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.