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#1
10-01-2007, 12:19 AM
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Difference Between Poker and the Stock Market
In poker, you're betting on cards; in the market, stocks.
Can anyone come up with another? I can't. 
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#2
10-01-2007, 12:29 AM
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Re: Difference Between Poker and the Stock Market
[ QUOTE ]
In poker, you're betting on cards; in the market, stocks. Can anyone come up with another? I can't. [/ QUOTE ] Stocks generally go up (even if you don't study the market), where as poker players generally lose (especially if you don't study the game). Stocks make you money even if you are out fishing. Poker only makes you money if you are actively participating in it. At small stakes, you can win more at one time at poker than stocks. At large stakes, you can win more in the market at one time than at stocks. The bad thing about stocks, is it takes a much bigger bankroll to get significant returns, but at the same time is less risky. The good thing about poker is you can quickly build a small to medium bankroll (if your good), but most players will quickly reach a plateau they can't overcome. At that point, your excess profits should be invested in the market.
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#3
10-01-2007, 02:54 AM
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Re: Difference Between Poker and the Stock Market
Here's one that Barrons screwed up when they wrote about me and other poker players.
They suggested that investors should take a hint from poker players who realize that they should quit a game when they are losing, ignoring ego and realizing their results might indicate that they are an underdog . But the analogy is badly flawed. Because your losses only tell you that you might have made a mistake when you SAT DOWN. In poker that usually means you should quit. But in the market it very often does not. Reason being, of course, that the "bad" buy, could have turned into a good hold, at the new lower price.
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#4
10-01-2007, 06:38 AM
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Re: Difference Between Poker and the Stock Market
[ QUOTE ]
In poker, you're betting on cards; in the market, stocks. Can anyone come up with another? I can't. [/ QUOTE ] You're kidding right? We can beat this subject to death again but one is a zero sum game more or less while the other isn't. Honestly I don't see too many similarities.
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#5
10-01-2007, 06:47 AM
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Re: Difference Between Poker and the Stock Market
[ QUOTE ]
[ QUOTE ] In poker, you're betting on cards; in the market, stocks. Can anyone come up with another? I can't. [/ QUOTE ] You're kidding right? We can beat this subject to death again but one is a zero sum game more or less while the other isn't. Honestly I don't see too many similarities. [/ QUOTE ] If OP is refering to stock trading then there are many similarities. They are both negative sum games. Poker has the rake and stock trading has commissions and spreads. Both are very difficult to overcome for the vast majority of people. There are also similarities with psychology, variance, risk management, position sizing (stakes in poker), EV plays, knowing when to push your edge, taking shots and calculated risks. There are so many similarities (IMO) but they've already been widely discussed. I believe there'd be distinctly fewer similarities between poker and investing than poker and trading.
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#6
10-01-2007, 08:02 AM
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Re: Difference Between Poker and the Stock Market
Why do people insist on comparing the two? The stock market significantly affects/is affected by our economy. Poker is a stupid game that a handful (relatively speaking) of people make money with.
Poker has various complexities but one can be successful at lower stakes by reading an easy book and applying a few basic concepts. It's a [censored] card game. The stock market isn't. As a side note: It pisses me off whenever I read here, "Oh I run so good at poker maybe I should become a trader because OMG they're so alike."
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#7
10-01-2007, 10:25 AM
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Re: Difference Between Poker and the Stock Market
[ QUOTE ]
Why do people insist on comparing the two? [/ QUOTE ] Maybe because poker and financial trading are both negative sum gambling games that can be profitable through risk management, skill, and a bit of luck. There are valid similarities.
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#9
10-01-2007, 10:43 AM
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Re: Difference Between Poker and the Stock Market
[ QUOTE ]
Here's one that Barrons screwed up when they wrote about me and other poker players. They suggested that investors should take a hint from poker players who realize that they should quit a game when they are losing, ignoring ego and realizing their results might indicate that they are an underdog . But the analogy is badly flawed. Because your losses only tell you that you might have made a mistake when you SAT DOWN. In poker that usually means you should quit. But in the market it very often does not. Reason being, of course, that the "bad" buy, could have turned into a good hold, at the new lower price. [/ QUOTE ] David, The table you sat down at is not necessarily the same one you are getting up from in terms of conditions. It could have also become a better value as a result of your losses.
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#10
10-01-2007, 10:57 AM
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Re: Difference Between Poker and the Stock Market
What prompted me to start this thread was an article in the Sunday, NYPOST about the debt accummulated by "Generation Debt," people in the 30-45 age group. The article stated that one of the "problems" with that group (which includes me) is that we view the stock market as gambling.
I understand that the financial firms spend millions of dollars every year to make the stock market seem "respectable" and to hide the gambling element. However, there's no other way to explain the constant fluctuations of stock prices other the gambling element. If a stock is selling at 30 in November, 45 in March, and 30, again, in August, did those fluctuations really reflect the value of the company?
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