Perfect Game

[UrmaBlume]

Looking at short-term trading as a heads up poker game consider the advantages: your opponent, the market, can never bet, raise or fold and he must call your every bet.

There are no antes or blinds, only a miniscule rake. You make make any bet at any time for any amount, knowing that you will be called and that you can stop any loss or take any profit at anytime.

Pat

[UrmaBlume]

Also, the market, your opponent, has tells and you can use a computer to read your opponents history and analyze his tells.

[philnewall]

Thank you.

[RikaKazak]

But a guy with a $10,000 bankroll (who's both good at trading and heads up poker) will make SOOOO MUCH more at poker in a 1 year timespan.

[kimchi]

[ QUOTE ]
Looking at short-term trading as a heads up poker game consider the advantages: your opponent, the market, can never bet, raise or fold and he must call your every bet.

There are no antes or blinds, only a miniscule rake. You make make any bet at any time for any amount, knowing that you will be called and that you can stop any loss or take any profit at anytime.

Pat


[/ QUOTE ]

The market is smarter than you and so you're playing against the highest of the high-stakes players, some with $billions in financial, human, analytical and computer resources.

You might have your little bankroll, and some internet graphs from Yahoo Finance.

The rake in trading IS HUGE. I've never seen any system that generates net profits that are greater than the cost of the trading business.

There are lots of similarities between poker and financial trading, but the ones you mentioned are not particularly good examples.

Besides, the biggest opponent when trading is yourself.

[Evan]

[ QUOTE ]
you're playing against the highest of the high-stakes players, some with $billions in financial, human, analytical and computer resources.

[/ QUOTE ]
The analogies are making me sick, but this "bankroll" one is really where the discussion should end. It doesn't matter how good you are/bad your opponent is if they have an infinite bankroll, and for the purposes of this example, they do. If you start with a finite amount of money and they start with an infinite, even if you know they will call every time you will lose.

Note: I know there's no blinds/antes here, but you also can't have the unbeatable nuts here, so every bet has some non-zero chance of losing.

[mrbaseball]

Plus the market can never be bluffed or bullied but it can bluff and bully and headfake better than any poker player in the world.

[DcifrThs]

[ QUOTE ]
Looking at short-term trading as a heads up poker game consider the advantages: your opponent, the market, can never bet, raise or fold and he must call your every bet.

There are no antes or blinds, only a miniscule rake. You make make any bet at any time for any amount, knowing that you will be called and that you can stop any loss or take any profit at anytime.

Pat


[/ QUOTE ]

man this is ugly. are you serious with this analogy or is this a really good lvlng?

if the former, my pity goes out to you.

Barron

[thehun69]

[ QUOTE ]
Besides, the biggest opponent when trading is yourself.

[/ QUOTE ]

Perfecto

THE HUN

[gull]

I like the analogy. It's creative. Unfortunately, it's also wildly inaccurate.

Every bet you make is with another participant. There is no player named "market."