If you think about it, poker and investing can actually be linked to each other in some ways. For some people, both of these things are simply gambling. The stock market for some, is basically a gambling hall and the poker table is where you hope to get lucky. However, poker and investing are long term plays that can help you achieve financial success!
Folding and Patience
Patience is one of the most important virtues of a poker player. Poker is not about being able to win every hand with any two cards but being able to get the most value with the hands that are actually playable. They need to wait for opportune hands in order to extract value from their opponents. Likewise, for an investor, it’s about being consistent and making right decisions over a long period of time in order to fill their pockets!
Investing blindly can cost you, so make sure there is a margin of profit before placing your bets. Be alert and wait for your favourable opportunity.
Taking Calculated Risks:
A good poker player will always evaluate and reevaluate each decision before making one. You will always need to decipher whether or not your move will be profitable in the long run or not. To do that, players need to have a good understanding of math, probabilities, and learn to predict outcomes, which is very close to what investors are doing.
Right State Of Mind
The player who’s paying attention to the game and playing properly will always make better decisions than those who are not. There can be a lot of things that can play with your emotions during a game of poker. You must keep your calm so that you can keep making profitable decisions going forward and not make irrational decisions. Likewise, investors who let emotions interfere with good strategy also make bad decisions. If it turns out that you can’t control yourself, usually by making stupid plays or decisions and losing a lot. It’s important that you leave for the night and come back with a fresh mind.
Understanding The Risk Factor And Human Nature
Understanding human behavior is one of the most important aspects of poker. Every move you make at the table, after the cards are dealt, is constantly noticed by your opponent who is trying to determine your hand. In investments, when the market is up, people feel good and invest big. While when it’s bad, they are often frightened to sell or let go. Understanding human nature means understanding your own behavior as well as others. Such as staying in a bad hand or a bad investment out of hope—and not because the mathematical probabilities tell us it’s the right thing to do.
Playing more poker could work in your favour if you want to try out investing or vice versa!