I am a huge stock market geek and a huge poker geek as well.
I remember seeing not too long ago a world poker series; they were interviewing a guy from the semi finals who said he was an option player.
That made me think, trading which is one of my biggest hobbies is very similar to one of my other favorite hobbies poker.
Now I know most people out there are not willing to believe that poker and trading are similar.
Most people associate poker with slot machines and gamblers, and the stock market with a way to invest your money and grow.
The truth is people do make a living by both being poker players and by being stock market traders.
Once more it takes the same qualities to be a good poker player as it does to be a good stock market trader.
In order to be a profitable poker player you must.
1.
Have a strategy that wins in the long term, probabilities and reading people 2.
Manage your risk, don't make stupid calls, fold when you are not sure 3.
Win big when you win, all in, raising, reeling them in In order to be a profitable trader you must 1.
Have a strategy that wins in the long term 2.
Manage your risk 3.
Win big when you win I'm not saying that the stock market only works when you get lucky.
But I am saying that the stock market is not something to be taken likely.
Most people believe they can just buy a stock today and sell it sometime later for a profit.
The stock market should be treated more as a poker game then a savings account.
You cannot put all your money in one stock and hope for the best in the same way you would not go All in with a jack high and hope for the best.
If you want to ultimately win you need a strategy that makes you money in the long run.