Poker fundamentals, also called poker concepts, are extremely useful strategies vital not only in poker but also in the development of the thought process required for trading and investment decision making. Today, the poker culture runs very steeply in several financial institutions, especially the wealthy ones that have a deep interest in the game.
Top Poker Fundamentals for Making Informed Trading and Investment Decisions
There are too many poker concepts that assist in improving trading and investment decisions. Selective few are given below.
- Risk vs. Reward
Business tycoon Warren Buffett has two essential business thumb rules:
- Rule 1: Never lose money
- Rule 2: Never forget Rule 1
Trading big and making significant investment decisions could reap more rewards, but it is also wise to trade small every now and then to survive and to prevent short-term bad lucks turning into the long term. Learn to control the downside loss, take affordable risks, and never indulge in reckless trading or investing that could harm the business’s financial stability.
- Weigh Money Properly
Understand the risks involved while trading or making an investment regardless of business size. What matters is how much money is at risk when the investor is right or wrong. Do not take large positions unless there is greater conviction.
- Gain Knowledge from Past Hands
Winning poker essentially involves studying past hands. Likewise, in the market, analyze past investment decisions, as well as the rationales, surrounding market, and economic conditions. Consult with experts on major business decisions made in the past. Study both success and failure stories.
- Emotional Control Over Intellect
Like poker, business is 80% mental and 20% mechanical. Traders should have the emotional stability to strike a balance between success and failure. In an active trade, set a maximum loss for a day, go flat, and welcome the realized loss. Never decide on any trade when in a weak state of mind where the investment is heavy.
- Improve Patience and Be Selective
Do not invest blindly and at the wrong time. Know exactly when investing or trading should be done. Sometimes giving up a good trade for a better exchange involving more money with a considerable payoff and small risk is fine. Waiting for a top-notch trade of high probability won’t hurt much. The decision should be easy and offer a safety margin when investing. Develop or improve on a portfolio that aligns with the current market trend.
- Small Pots vs. Big Pots
Be mindful of individual skills and preferences when trading small or investing big, and have a well-thought-out strategy before jumping into the pot. Out of the two market trends given below, which would be the best bet?
- Smaller investments, active trading with more positions spread across numerous securities, over a shorter time period
- Larger investments, long-term holdings with fewer positions spread across minimal securities, over a longer time period
MintDice—An Emerging Leader of Virtual Casinos
Established by a former pro poker player, MintDice is an online Bitcoin casino that allows players to play and invest in a wide array of cryptocurrencies. Innovation-focused and community-centered, the platform presents an investment and trading window for businesspeople, for them to know more about chances of winning and benefiting without much risk.
MintDice games have effectively applied these poker concepts to the trading sphere. For example, the Bitcoin investment game Pyramid combines the concepts of skills, preferences, and patience. Through its games, MintDice helps businesspeople decide wisely on risk-rewarding decisions, and also provides a partial hands-on experience in trading and investing that could come handy when conducting business for real.
Time Learn the Concepts
These poker concepts, along with many others, are gaining tremendous market traction and interest off late. They help traders and investors take a manageable and realistic approach toward business, and aid them in demonstrating strong commitment and solid discipline over the long run.