Every trader wants to be a professional. Every new trader must learn since there is no other approach to become professional. And at some point every trader begins to compare trading to businesses to discover some valuable ideas or techniques. Poker is usually in comparison to trading. Many people state that poker is just like trading. I have experience of both fields. And I wish to write my personal about this question.
Trading can be a serious business. And to decide whether it is similar to poker or otherwise not we must compare trading with poker. What is similar and what is different?
The first as well as the biggest similarity is in poker as well as in trading our earnings are not guaranteed. It is rather difficult to acquire money for a beginner. Trading and poker are serious businesses. But lots of people take into consideration that these lenders can give them quick money. Many people do not understand neither mechanisms nor rules of those areas. I know many individuals who started trading and generate losses in a very couple of weeks. I know many people who started playing poker plus lose all the money. They believed that they would become rich in the month or two. And such thoughts is not going to allow you to successful trader or player. In this regard poker and trading are extremely similar.
In trading and in poker we have to cope with probabilities. But probabilities in poker might be counted. Though your estimation of poker probabilities is based on insufficient information you'll be able to decide whether your actions are profitable or otherwise. It is difficult but it's possible.
It is more tough to estimate probabilities in trading. You must understand trends and identify trends correctly; you must understand movements of the market. And you don't have any numbers. You can not claim that you've got for instance 56% to win money in current trade. Moreover each trader estimates the market differently. One trader can point out that economy is nice but other trader can state that the same market in the same time is not good for him. And both may be right given that they may have different trading strategies.
The biggest difference between trading and poker is the fact that if you play poker you're taking a certain amount at the table. You know that if you have $1000 at the table you will never loose greater than this $1000. You can not shed more pounds money than you might have at the table. In trading you are able to lose all your money during one trade. You need to trim your loses yourself. And it is one of the most difficult thing in trading for lots of people.
The greatest trader coming from all times Jesse Lauriston Livermore played poker. We can read relating to this fact in “Reminiscences of an Stock Operator” by Edwin here Lefevre. Richard Smitten is an additional famous author who wrote about Livermore. Both authors wrote that Jesse Lauriston Livermore liked to play poker regarding his friends. And he played poker well.
After reading this many traders know: “Hmmm… If Livermore played poker and was the greatest trader I should start playing too and definately will become the greatest trader as well”. But as I think there isn't any direct correlation between trading and poker skills.
Poker and trading have similar laws. But it does not necessarily mean you are good trader after success in poker or good poker player after success in trading. Yes, these areas are similar nevertheless they require different skills. Anyway an advanced trader you'll be able to always try to try out poker and choose, can it be comparable to trading or not. Your own opinion will be more valuable to suit your needs.