Poker and the Investment Game
This much is true: All financial investments have risks. Of all the people who go into trading, about ninety percent will inevitably end up losing money. So, what is it that you're doing wrong? In simple terms, these people do not have a good understanding of the situation. It can even be said that investments is like playing poker.
My theory is thus; the game of poker is a good simulation of the investment world, and the correct strategies in winning, or getting to the endgame, at least, is similar in both cases. I admit that this may sound a bit nontraditional, but do hear me out.
When playing poker, you will not get very far if you just hold back, wait for the right hand, and then invest all of your chips in that one good hand. For one thing, even the best hands have a level of risk attributed to it, so you may still end up losing all your chips in one go. For another, going all in, guns blazing, will only result in a small yield of extra chips.
It's not a very good move to bet like mad on every single hand, either. If you do this, you'll come across as not very bright. Constantly exposing the majority of your chips to high risk will eventually lead to a burnout; you'll be the first one out of the game, having lost all your chips in a few fell swoops.
What is the right way to play poker, you may ask? Anyone who plays the game will learn quickly that getting ahead in poker takes a lot more than just looking at your own hand and chips. It takes getting a good feel for the hands and chips of the other players around the table. Once you have a good feel of the table, you'll realize that you can't bet all your chips in one single good hand. Put your chips in little by little, spreading out your chips to good, but not necessarily great plays.
In conclusion, these same principles will apply to trading. The game table is the market, and how it affects your investments. You'll also avoid having all of your capital on one investment; if it is spread out in many decent deals, then if one crashes, it wouldn't be as devastating. - 23167
My theory is thus; the game of poker is a good simulation of the investment world, and the correct strategies in winning, or getting to the endgame, at least, is similar in both cases. I admit that this may sound a bit nontraditional, but do hear me out.
When playing poker, you will not get very far if you just hold back, wait for the right hand, and then invest all of your chips in that one good hand. For one thing, even the best hands have a level of risk attributed to it, so you may still end up losing all your chips in one go. For another, going all in, guns blazing, will only result in a small yield of extra chips.
It's not a very good move to bet like mad on every single hand, either. If you do this, you'll come across as not very bright. Constantly exposing the majority of your chips to high risk will eventually lead to a burnout; you'll be the first one out of the game, having lost all your chips in a few fell swoops.
What is the right way to play poker, you may ask? Anyone who plays the game will learn quickly that getting ahead in poker takes a lot more than just looking at your own hand and chips. It takes getting a good feel for the hands and chips of the other players around the table. Once you have a good feel of the table, you'll realize that you can't bet all your chips in one single good hand. Put your chips in little by little, spreading out your chips to good, but not necessarily great plays.
In conclusion, these same principles will apply to trading. The game table is the market, and how it affects your investments. You'll also avoid having all of your capital on one investment; if it is spread out in many decent deals, then if one crashes, it wouldn't be as devastating. - 23167
About the Author:
Do not fall for get-rich-quick schemes that are rampant on the Internet! With the help of Emini Trading, you will learn a sound, well-built plan to slowly but consistently earn more and more with trading. Be a part of the Emini Trading System now!
posted by X - Men @ 7:09 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home