People often look down on poker as a mere game of chance where players are at the mercy of the dealer. But poker is so much more than that, and is similar to life itself. You cannot control the hand you are dealt, but skill, confidence, and the ability to lie your teeth off can help you get farther than you think.
Poker is a game of skill and not chance. It's worth taking a look at how poker can improve your ability to win at the stock market. Because just as poker can teach us about life, it can also teach us the skills needed and the ways of thinking which can help us invest wisely.
Here are several simple tips that can help both on the poker table and on the stock market.
1. Stay calm
Everyone knows that poker players need to keep their faces calm and expressionless. The slightest snort, a bobbing Adam's apple, or the raise of an eyebrow can be the sign that a player is bluffing or has a terrific hand.
Stock market investors do not need to read those little gestures. But they do need to stay passive and keep away from emotional investing. Bad investors rush to buy or sell based on some piece of news without sitting down and intellectually assessing how the markets will be truly affected. Stay calm, never panic, and stick to a plan.
2. Stick to a plan or style of investing
Not all good poker players are the same. Some rely more on math and can calculate in their heads what their relative chances of victory are. Some are better at reading their opponents. As Pokerology observes, there are four rough archetypes of poker players, and each one should stick to a particular style.
But what matters is that good players know what their strengths and weaknesses are, and they stick to a playing style which maximizes their strengths and minimizes their weaknesses. Stock investors should do the same thing. Warren Buffet has a different investing style and different goals compared to an ordinary stock investor. But if that ordinary investor can find his own style and not drift away from said style, it will make sure his investments become more consistent.