Poker and Day Trading

Poker and Stock Day Trading

There exists a myth concerning poker and stock day trading. Both activities are regarded as forms of gambling. But the fact of the matter is that while one can approach these activities as adventures and with an attitude of a gambler, thus exposing oneself to inordinate risks and possible financial ruin, one possibly makes a decent living by playing poker and trading stocks on a daily basis with a conservative, risk-controlled orientation.

The Factor of Chance (a.k.a. Luck)

Due to the presence of chance in poker, as in all forms of gambling, rank amateurs fail to realize that poker is essentially a game of skills (barring no cheating, thus, it is strongly recommended that you play the game in a casino where the cards are shuffled by a machine). Since skills can be acquiSred and improved by practice and learning (via books and tutors) theoretically you should defeat opponents with lesser skills as luck (good luck versus bad luck) would even out in the long run.

The elements of Greed and Fear

Greed and Fear are dominant emotions in most human activities, but they are especially predominant in poker and day trading because they involve expansion and survival. To be successful in the pursuits of poker and day trading, you must not be overly concerned with enhancement or preservation of wealth, but rather with optimal decision-making.

Psychological Dimensions

Since your opponents are most likely human (except for computer-driven trading), it pays to understand the psychological make-up of yourself and of your opponents, and the factors behind each decision, yours and theirs.

Money Management

It does not really matter if you possess all the technical skills and psychological knowledge, you would not stay a winner for long if you don't know how to manage your money. The road to financial ruin is littered with once-successful players and traders who either took on undue risks or squandered their money on ego-enhancement or sensuous pleasures.

Taxes

This is the only area where poker is different from day trading. Unless you exclusively make money by playing poker tournaments, you can hide your winnings from the prying eyes of the IRS by playing only cash games in poker.

Conclusion

This brief article has touched only the most salient points of the games of poker and day trading. There is a voluminous literature on the subjects in the bookstores and in the cyberspace. You can be a winner in these endeavors if you have a rationalistic, unemotional disposition towards games and problem-solving because poker and day trading, like most games (love, sports, languages)  invented by humans, have certain rules you must follow religiously if you aspire to come out on top.

Wissai


Roberto Wissai/NKBa'