Poker and the Investment Game
It's a fact that all financial investments have risks. Ninety percent of people who enter into trading will end up losing their money. So what is it you're doing wrong? These people do not have a good enough understanding of what's going on in the situation, simply put. In a way, entering into investments is akin to playing a game of 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.
Betting like mad on every single hand is not a very brilliant move, either. Do this and you'll probably end up being playing the fool. If you constantly expose your chips to high risk, it'll only lead to a sudden burnout; you'll be out of the game before anyone else, steadily losing all of your chips in a few rounds.
So what is the right way to play poker? As anyone playing will learn quickly, getting ahead in poker involves more than just considering your own hand and chips, but getting a good feel for the hand and chips of those around you as well. Once you get a good feel of the game table, also know that you can't put all your chips in one really good hand. Invest your chips little by little, spreading out your game to those of 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. - 23204
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.
Betting like mad on every single hand is not a very brilliant move, either. Do this and you'll probably end up being playing the fool. If you constantly expose your chips to high risk, it'll only lead to a sudden burnout; you'll be out of the game before anyone else, steadily losing all of your chips in a few rounds.
So what is the right way to play poker? As anyone playing will learn quickly, getting ahead in poker involves more than just considering your own hand and chips, but getting a good feel for the hand and chips of those around you as well. Once you get a good feel of the game table, also know that you can't put all your chips in one really good hand. Invest your chips little by little, spreading out your game to those of 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. - 23204
About the Author:
Rick Amorey does not advice you to go for get-rich-quick schemes that are rampant on the Internet! With the help of Emini Trading, you will learn a disciplined, solid methodology that will get you to consistently earn more and more with trading. Join the Emini Trading System now!
posted by X - Men @ 1:45 PM
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