I've read several places where traders recommend Poker as a psychological (at least) training tool for trading. I never really understood this, and am hoping someone can enlighten me. If anything, I see Chess as a much-better suited tool. In chess, we need to plan, be patient, and execute an idea yet be nimble enough to deal with unexpected occurrences and change the plan. We also have to be extremely careful of our opponent (the market) and protective of our pieces (capital). Here is an excerpt from a site:
To be able to “recognize familiar configurations and associate them with appropriate moves…” is an important concept to remember. Proper analysis results in successful trading. First you must analyze, then you must trade. The results are dependent on how well your preparation is, and how well you carry out your trading.
I was just wondering this last night while playing chess and saw a few similarities, but then compared it to poker, which to me, seems like outright gambling against an unseen (no benefit of a 'poker-face') opponent. Any thoughts?
The following user says Thank You to phyzfer for this post:
that's an intriguing question ... perhaps the obvious answer is: both/and
good point about chess having components of strategy/setups and waiting for right execution/entry. we could call that the "technical" component. while some play poker haphazardly, there are others who adhere to a set of "rules". so it could certainly be said that both poker and chess are better/best played with a set of technical rules.
i've never played chess for money. perhaps some do. i have played some poker. but even with "fake" money in poker, the goal is to end up with more chips than you started with. if you don't approach the table with sound money-management rules, you could get slaughtered. same is true with trading.
taking a cue from Elder (and others), the third leg of the 3-legged stool would be psychology. i'd venture to guess that both games require proper attention to psychology in order to be successful.
so i think i'll end where i started ... answer: both!
The following user says Thank You to eman for this post:
Good point, I didn't think about the money factor. I'd say my pawns and larger pieces are my working currency in chess. I have played poker a few times, and with chips, it is definitely a game that requires mind and money management. Moderate answers, imo, are always closer to the Truth than one-sided answers ;-).