Investing and Gambling Similar
Many have compared investing to gambling and in many ways they may be correct. Playing poker and investing have many similarities. Some kinds of day trading involve considerable risk and the forex market is extremely risky and volatile much like a game of poker. Poker is probably the most popular game of skill and it comes as no surprise to find that many poker players also trade on forex exchanges. Poker tournaments are routinely broadcast on ESPN and many poker players have become household names in the US.
Discipline and Adaptability
Poker playing and forex trading require very similar skill sets. For example poker players must be very disciplined with nerves of steel. This characteristic is also the hallmark of a successful forex trader. Poker players and forex traders are methodical and not given to emotional responses to adverse situations. Poker players and forex traders are amenable to change and the forex market is constantly changing much like the cards in a game of Texas Hold ‘Em. Both must have the ability to adapt to sudden changes and the sudden rate changes of the Fed can have the same effect as a newly dealt card.
Logic and Reason
Poker players and successful forex traders have the ability to make quick decisions based on logic and reason. Typically emotion does not play a part in the decision making process. Both must be able to withstand losses without emotional reaction. Just as poker players do not win every hand forex traders may experience sudden losses due to rapidly changing market conditions. Forex traders and poker players are resilient and have the ability to bounce back after sudden losses.
Long Term Results
Forex traders and poker players focus on long term results. Just as chips accumulate so do pips. Poker players and forex traders are usually confident people. Forex trading can easily be as volatile and ever changing as a game of poker and both require a high degree of confidence. Given these similar characteristics it would not be surprising to learn that many top poker players also trade forex!
Many have compared investing to gambling and in many ways they may be correct. Playing poker and investing have many similarities. Some kinds of day trading involve considerable risk and the forex market is extremely risky and volatile much like a game of poker. Poker is probably the most popular game of skill and it comes as no surprise to find that many poker players also trade on forex exchanges. Poker tournaments are routinely broadcast on ESPN and many poker players have become household names in the US.
Discipline and Adaptability
Poker playing and forex trading require very similar skill sets. For example poker players must be very disciplined with nerves of steel. This characteristic is also the hallmark of a successful forex trader. Poker players and forex traders are methodical and not given to emotional responses to adverse situations. Poker players and forex traders are amenable to change and the forex market is constantly changing much like the cards in a game of Texas Hold ‘Em. Both must have the ability to adapt to sudden changes and the sudden rate changes of the Fed can have the same effect as a newly dealt card.
Logic and Reason
Poker players and successful forex traders have the ability to make quick decisions based on logic and reason. Typically emotion does not play a part in the decision making process. Both must be able to withstand losses without emotional reaction. Just as poker players do not win every hand forex traders may experience sudden losses due to rapidly changing market conditions. Forex traders and poker players are resilient and have the ability to bounce back after sudden losses.
Long Term Results
Forex traders and poker players focus on long term results. Just as chips accumulate so do pips. Poker players and forex traders are usually confident people. Forex trading can easily be as volatile and ever changing as a game of poker and both require a high degree of confidence. Given these similar characteristics it would not be surprising to learn that many top poker players also trade forex!
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