Poker Is Flush With Insight for Traders

Art and science ... it takes both. Both activities are more art than science -- that's why they are so difficult to master. Knowing what to do is about 10% of the game. Knowing how to do it is the other 90%.

Money management. The same sound principles of money control apply to the business of tournament/professional poker and to successful investing. The way to build long-term returns or poker winnings is through preservation of capital and home runs.

The important twins of poker/investing, patience and staying power. Come to the poker table or to the markets with enough time to stay, and play for a while.

Alertness is a key. You must stay alert at all times.

So is discipline.

Never let your mind dwell on personal problems. Never play/trade when you are upset. Make a conscious and constant effort to discover any leaks in your play, and then eliminate them.

Control your emotions. Allowing your confidence to be shaken can turn a simple losing streak into a terrible case of going bad. Keep your emotions in check. When you lose a pot or make a poor investment decision, get up, walk around the chair or take some deep breaths. Don't lose your poise. If a trade, or if poker hand does not work out, walk away from the position/hand. Be confident enough about your ability to win afterwards.

Schedule vacations. It is important to give both your mind and your body a rest.