"You cannot survive without that intangible quality we call heart. The mark of a top player is not how much he wins when he is winning but how he handles his losses. If you win for thirty days in a row, that makes no difference if on the thirty-first you have a bad night, go crazy, and throw it all away." - Bobby Baldwin
Trading the capital markets, and providing liquidity to the economic flow? Many people compare this, to playing poker.
Because if you let it ... the markets? They can drive you crazy ...
Literally ...
(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)
Trading the capital markets, and providing liquidity to the economic flow? Many people compare this, to playing poker.
Because if you let it ... the markets? They can drive you crazy ...
Literally ...
(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)
I hope this also illustrates, that if you are low funded? Why it is so important to add funds to your accounts at regular intervals ...
* * *
Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.
* * *
Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have over 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.
7 comments:
Airelon,
Great post.
Typically the link between poker and investing or trading is often made (more on this later).
But you actually link poker to the capital markets and providing liquidity for investors - a relevant but often forgotten area compared to investing and trading.
I'm a huge promoter of the link between investing and poker and have developed the concept of Texas Holdem Investing - teaching investing through the medium of poker.
Keep up the good work.
John (aka The Masked Financier)
Thanks much for the kind comments John ...
It is fascinating how similar the two "games" as it were, actually are ...
Dan
Good video ( again )..
Seems like the analogy of poker and trading has come into the consciousness of the "trading airwaves" just since the beginning of the decade ... I don't remember it mentioned too much in the 80's and 90's.
Not being much of a poker fan, I can't say that "learning" it can / would have "improved" my trading learning curve ( as I feel that I've reached some sort of "pinnacle" of trading experience anyway; it's " Now use what you've learned already damn it ! " )). I would still advocate the school of doing 1000's of trades and losing ( and gaining ) 1000's of $$ over 5 - 10 years ( while reading and studying various aspects of the craft of course )... this along the lines of the "practicing something for 10K hours in order to master it" theory. Jimmy
great video airelon.
I have been out of the stock market for 2 years due to the frustration of loosing.
recently I have gotten back in the stock market after watching a few dozen of your youtube videos and learning what i could about money management and how the markets work. I am extreemy low funded but so far i am staying in the game although it it verry hard not to get emotional on loosing trades as well as winning ones.
thanks for all your hard work on making these videos and podcasts.
Heyya Ken and Jimmy.
Ken ...
You're more than welcome mate ...
Honestly? Folks like yourself? That's why I'm here. I know * exactly * where you're coming from when it comes to being low funded ...
Jimmy,
I hear ya. After a lot of demo trading with all of the principles in hand?
There's something to be said? For just sitting, and trading for a bit ...
Dan
Dan,
one of your best videos ever.
I really appreciate your dedication to helping the low funded.
I watch your money management videos over and over to keep reminding myself how extremely important it is. You are so right about the markets, and I have often told friends who are looking to get into trading not to bother. After their anger subsides from the shock of hearing the brutal truth, I go on to explain that trading is much more about discipline and money management than picking a right trade.
for example, I told a certain friend "You cant quit smoking cigarettes, spend your entire paycheck within 3 days of receiving it, and bet $400 on 1 football game when you cant even pay your electric bill on time. You will not succeed in trading." they dont like hearing it but its the truth.
trading takes discipline! I know this and still find myself makinging foolish mistakes like letting my "mental stop" float lower on longs and higher on shorts. mental stops suck and I need to place hard stops, but easier said than done.
thanks again dan.
Openbahr (atomichockey)
Heyya mate,
Good to hear from ya, and thanks for the kind comments.
Yeah, I was proud of this one. I appreciated your comments too, because that's the brutal truth of why the money management leaks into every aspect of life.
What's the old saying? "He who is faithful in what is least, is faithful in what is much" ?
It does prove true. If a person can't save their money in the bank without blowing it on frivolous incidentals - how in the heck are they going to manage thousands of dollars inside a trade?
Thanks again, and good hearing from ya. See ya around Twitter !! :) ...
Dan
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