I’ve always enjoyed the game of poker. It’s fun (and yes mom it is gambling, I understand that.) I whole heartedly agree that investing and gambling are not the same thing at all.
The reason so many have a hard time seeing the difference is because there are numerous similarities. Here are some of the most apparent:
- It’s exciting
- It involves the potential rapid gain or rapid loss of money
- It’s often mysterious to many
- You have to risk money to make money
- One of the biggest cornerstones for longevity and profitability in the game is is not losing money
- You can make a career out of it
- You really can make a lot of money doing it (that’s the allure, right?)
- Fortunes can change quickly
- Many people are interested in it
- You make the choices of when and why to put money in
- You’ve got to follow some sort of plan and system
- Folding your hand (and using stops or simply exiting a bad trade) is not a bad thing at all. You do not have to play every hand or be in every trade
- Play only the best
- Be patient!!!
- Be disciplined
I love poker, I really do. It has a thrill that trading doesn’t. That turn card and river card are just such an unknown. In the markets, it’s either going up down or sideways. That fifth card though? No one ever knows. That’s why it’s gambling at the end of the day. You can make all the right plays and lose. One of my rules in Poker is “don’t go all in unless you are in a very strong position.” If it’s a cash game “Don’t go all in unless you’ve already pulled off profits and you’ll win regardless, or there is a zero chance you lose the hand.
In poker and trading I play pretty “tight”. I’m all about risk mitigation because I know over a long enough time line, as long as I have money to play with, I can hit a big winner. It’s just math. If you win more money than you lose, you’ll be profitable.
Until next time traders, thanks for reading! YOU ROCK!
