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20 Poker Quotes that Apply To Trading Too

  
  Education
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Poker is one of the very few casino games that are like trading. Unlike other games where the casino keeps the odds in their favor in poker there are many ways to get an edge over other players at the poker table. The way you play the odds can give you an edge, folding on bad hands quickly and playing the best hands only give you an advantage. Managing risk per hand can keep you in the game while others blow out. Sticking with the odds instead of letting emotions take over is another big advantage over other players. I have a buddy that plays well in poker tournaments and it is odd how we can talk about the same elements of strategy that matches both endeavors. Both poker and most financial markets are zero sum games where money flows from those who do not know how the game works to those who do.

  1.  “Living in the past is a Jethro Tull album, not a smart poker strategy.” -Richard Roeper
  2. “The beautiful thing about poker is that everybody thinks they can play.” -Chris MoneyMaker
  3. “If there weren’t luck involved, I would win every time.” — Phil Hellmuth
  4. “If you can’t spot the sucker in the first half hour at the table, then you are the sucker.” — Matt Damon in Rounders
  5. “The cardinal sin in poker, worse than playing did cards, worse even than figuring your odds correctly, is becoming emotionally involved.” -Katy Lederer
  6. “You cannot survive without that intangible quality we call heart. The mark of a top player is not how much he wins when he is winning but how he handles his losses. If you win for thirty days in a row, that makes no difference if on the thirty-first you have a bad night, go crazy, and throw it all away.” -Bobby Baldwin (more…)

Market Truisms and Axioms

  
  Education
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• Commandment #1: “Thou Shall Not Trade Against the Trend.”

• Portfolios heavy with underperforming stocks rarely outperform the stock market!

• There is nothing new on Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again, mostly due to human nature.

• Sell when you can, not when you have to.

• Bulls make money, bears make money, and “pigs” get slaughtered.

• We can’t control the stock market. The very best we can do is to try to understand what the stock market is trying to tell us.

• Understanding mass psychology is just as important as understanding fundamentals and economics.

• Learn to take losses quickly, don’t expect to be right all the time, and learn from your mistakes. (more…)

Trading Mantra's

  
  Education
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“Technical analysis is a windsock, not a crystal ball. It is a skill that improves with experience and study. Always be a student, there is always someone smarter than you!

“Thou Shall Not Trade Against the Trend.”

Let volatility work in your favor, not against you.

Emotions can be the enemy of the trader and investor, as fear and greed play an important part of one’s decision making process.

Portfolios heavy with underperforming stocks rarely outperform the stock market!

Even the best looking chart can fall apart for no apparent reason. Thus, never fall in love with a position but instead remain vigilant in managing risk and expectations. Use volume as a confirming guidepost.

When trading, if a stock doesn’t perform as expected within a short time period, either close it out or tighten your stop-loss point.

As long as a stock is acting right and the market is “in-gear,” don’t be in a hurry to take a profit on the whole positions, scale out instead.

Never let a profitable trade turn into a loss and never let an initial trading position turn into a long-term one because it is at a loss.

It’s not the ones that you sell that go higher that matters, it’s the ones you don’t sell which go lower, that do.

Don’t think you can consistently buy at the bottom nor sell at the top. This can rarely be consistently done. (more…)

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