Re: Difference Between Poker and the Stock Market
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Commissions are really insignificant IMO. If I buy $100,000 of stock with a $10 commission that's nothing. The rake in poker is much more difficult to overcome. Second of all even if one is doing day trading in a very limited number of stocks, they have the upward bias of the market working for them. I realize that people are not compensated for taking individual company risk and the systematic risk varys from stock to stock (GE correlates more with market movements than somehting like KKD for instance) but there is an upward bias nonetheless. Not true in poker. Sorry the market makers in stocks and the house in casino poker are not the same thing at all, not even close.
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If you're relying on the 'upward bias' in the US market as a day trader, then you're in the wrong biz. Just buy bonds and forgo churning commissions. Being a market maker is more analogous to table games in the casino than to the rake in poker. The casino, or market maker, can lose on any given bet but in the long run EV becomes actual value.
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