Investment and gambling are two different things, and no one should ever consider gambling as a form of investment. However, there are a good number of investment lessons to be gotten from poker interestingly.
One thing you need to know about poker is that it is not solely based on luck. Several factors come into play during a game of poker. If you take the necessary steps during the game, you will have a good chance of claiming a win. In other words, you won’t have to rely on luck.
In this article, we will be taking a look at some poker lessons that you can apply in your investment journey.
Research research research
Unlike most casino games, poker requires a good level of skill. An example of a skill needed for the game is “poker face”. To have a profitable time playing the game, you need to know how to keep a poker face. The importance of this skill is that it will prevent your opponents from having an idea of what is in your hand.
Similarly, you need to pay attention to your opponents at the table. You can get an idea of the cards that they are holding if you study them. Watch their reaction when they get their cards, and if you can mark a trend, it may help you predict their hand.
The same applies to the stock market. To be successful, you have to pay attention to the stocks, their movements, and how the market reacts to various news. This will help you make the right decisions in the market. Remember to be smart and always do your research like smart poker players. Partnering with a poker player can even be a great idea.
Take risks
Without courage, it will be quite difficult for anyone to make life-changing decisions. This is true in both the real world and the casino world. The best poker players are those that know how to turn a bad hand into a good one by taking risks.
As an entrepreneur, you will have to take risks from time to time. For example, you will have to take a significant amount of risk during the process of launching a new business. If it goes wrong, you may have to bear the losses alone. But if the business succeeds, it can be a life-changing investment.
We will also like to note that the financial investments with the biggest risks tend to offer the biggest rewards. So while you shouldn’t go about chasing risky endeavors all the time, you shouldn’t play safe all the time too. Sometimes, not taking a risk is the biggest risk.
Patience is key
If there is one trait that is synonymous with all great poker players, it is patience. Composure is vital when playing at Aristocrat pokies online real money. It is normal to encounter a couple of bad hands and losses but if you can maintain your composure, you will get your money back eventually.
Patience is also an essential trait for investors. In moments that your stocks seem to be going downhill, you should resist the urge to make panic sales. If you can be patient enough during such moments, you would see your stocks rise again. Of course, this is if you took our first advice by doing good research before making your investment.
Always remain composed like the experienced poker players and never let your emotions control your financial decisions.
Know your limits
It is easy for a poker player to forget his or her financial limits while gambling. This is because players tend to get lost in the moment thinking that they will claim the next hand. However, the best poker players are known to set a budget based on their financial capabilities and stick to it.
You should take the same step as an investor. For instance, you can decide on the specific amount that you will be investing in stocks or CPF annually and not exceed it. You should also ensure that you have emergency funds for rainy days.
Know when to pass
One of the greatest poker quotes goes, “You will show your poker greatness by the hands you fold, not by the hands you play”. This statement was made by Dan Reed and it makes lots of sense. It simply means that you need to have a clear idea of what will work for you and what won’t.
You should also try to have clarity while investing. This won’t just help you make more money, but it will also make life much easier for you. It is good to remain patient when your investment isn’t going well. However, you need the right moment to exit.
Final thoughts
Though you are meant to be playing poker mainly for fun, there are several lessons from the game that you can apply to your investments. Remember to always do your research, take risks, be patient, set a budget, and know when to pass. Good luck!
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