[James.]

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I've looked in the micro FAQ and searched a bit on the forums, but I can't find any thread/article which explains the first baby steps. There's so many people to watch and so many things I could be paying attention to. Should I just start observing only one or two players in a session? What are the best things to start looking for as a newbie? I've ordered Mike Caro's book but it will take some time before it arrives; is it any good?

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Caro's book is probably the best one out(or at least the best one out that i've heard of). you need to remember it's far from perfect, though. you also need to keep in mind that many players react differently to each situation. this is often a reflection of the player's personality. Caro's book is good at identifying the little physical things, but it's still going to be up to you to interpret it at the table.

the only other advice i can give is watch. when out of a hand, sit there and watch the mannerisms of these people. how do they react when raised? when they plan on folding do they make premature motions? when they plan on betting/raising do they get the chips ready beforehand? how are they protecting their cards? are they aggressively splashing chips or are they deliberate and concise? all of these bits of info may add up to your being able to make a slightly better decision because you "notice" something. as with anything, it's something you get better at over time and with practice. watch. listen. learn.