Vanessa Selbst is a revered poker celebrity who has 1had a magnificent poker career all throughout. Interestingly, after her retirement from poker, she chose trade market investment as her new profession which in turn is a hint towards the possibility of poker players being comparatively more skillful while investing money in the stock market.
Aaron Brown, author of “the poker face of wall street” firmly believes that the game of poker and the trends of stock market have a lot of similarities. Brown drew this inference from his own experience – he has been a poker player all his life. Also, trade market was his profession for 30 years. From his 30 year stock market career, he felt that there is a lot of similarity between poker and stock market.
Since both the fields are under the influence of probability to quite an extent, here we are to draw a parallelism between trade market and the game of poker:
Taking risk is the first step: successful poker players and great stock market traders know it very well that risk is the stepping stone to success in their field. On one hand they know, any moment, they can face huge losses but on the other hand they also know that it can also be recovered in the same way. The most successful poker players and investors know what it feels like to take a serious risk, and they don’t let it rattle them too much. Maybe they’ve even “pushed the rent money into the middle of the table,” Brown says.
Both poker players and traders should be observant to the trends that led to their win. Taking those patterns as reference, maestros of both the field secure their profit.
Analyzing the pattern: traders and poker players are subjected to two different scenarios while analyzing patterns. A poker player analyzes his opponents from the change in his or her body language, the pattern of betting and various other factors. But to be a good trader, you need to do extensive reading and research on the previous market trends to save your money from being wasted. Early wins are a result of the correct impromptu decision whereas profits at large come from extension research and updated knowledge of the market.
Team work: unlike poker, trading is a team work. You cannot earn well from the stock market without partnership and team work. But in poker, your win is your credit. Thus, this habit of working solo sometimes results into repulsiveness towards team work, in case of poker players. This brings their downfall while investing in stock market.