This one is as close as it gets to trading. But man are there some differences. To make any sort of real money, professional poker players have to play the big stakes games. And who else is playing the big stakes games? That’s right: professional poker players. This means that the best are most often competing against the best. They can’t prey on the amateurs if they want to make serious money. And if they play tournaments, they’re up against hundreds or thousands of other pros all vying for the big cash prize. No matter how good they are, their odds of actually winning the whole thing tend towards a coin toss. And while they have a good long-term edge, the short-term variance of poker is very high. So high in fact that extended multi-week deep drawdowns can be normal even for the not so super aggressive player.
Now think about yourself as a trader. You’re in one big pond called the market. And if you work on your game enough to become a skilled pro, you get to fish in this pond- a pond which includes all the amateurs. This means that while yes, you’re up against the pros, you also have millions of amateurs whose money you can take. You don’t have to be one of the very best in the world to make a great living at it. And if you do become one of the best in the world, you don’t have to sit across the other great ones and play heads-up to make your living. Your short-term variance is also much lower. You can realistically craft a style that makes money every single month with only moderate drawdowns. “Must be nice”, the poker pro thinks to himself.
Download Our Free eBook
And subscribe to our MarketHeist Guides newsletter!