It is often found that some of the best stockbrokers and investors were once great poker players, but have you ever thought why? Poker is commonly considered a game of chance and luck, but how did the investors get benefits from this card game, that is a question of the hour. Well, the reason for it is that the skills of a poker player develops with experience which leads to becoming a winning player. Did you know that this is the key reason why top Universities like Harvard, UCLA, etc have incorporated Poker for their Law and Business students? As an investor, you must be thinking what are those poker skills that a poker player possess that should be learned by you to make your investments profitable. Here are some of the skills that you can develop while playing poker and which in return will help you in investing money properly:
A professional poker player is strong in mathematics and probability as he/she has to calculate the pot odds and outs quickly as it helps him/her to know the amount of money he/she could win and lose. Thus, if you play poker it will improve your mathematical calculation and probability factor and in return help you to easily decide where to invest money for productive returns.
Poker is a skill based game that enhances your analytical and logical reasoning skills. Poker being a game of incomplete information requires a player to be good in critical reasoning. Poker players have to simplify and rationalize decisions while playing in order to gain an edge in the game. In a similar way, critical reasoning helps you in deciding how much money should be invested in different types of platforms like mutual funds, fixed deposits, gold, etc.
Being a poker professional requires you to be competitive enough to make the first offer like when to raise or fold and how much to bet in the game. But this learning comes with proper money management. A poker player always have to keep control of money they play in order to minimize the impact of bad run of cards from weakening their bankroll. Likewise, money management helps investors to overcome financial crisis in bad days when the stock market is going down.
To be a long run winning player, you should be good at managing risk, and poker as a game is the workshop of risk-taking. Risk assessment in poker teaches you the key lesson of investing – risk vs reward. In poker, you have to analyze the cards and pot on the table and study your opponents to make you moves. And, while investing money in share, you have to analyze the shares of different companies and study the market trend to invest your money. For instance, you are holding pocket aces and your hole cards hold 100% value in comparison to what your opponents are holding. Similarly, if you are holding shares of Apple Inc., then it is your value stock as it has the highest price in the share market in comparison to shares of other companies.
Poker is a game of upswings and downswings which requires poker players to be emotionally strong to overcome bad days. And with experience, poker players get mature enough to not let bad days affect their game play. For example, if you are constantly facing bad run of cards, then it’s time to let the mind rule over feelings and if you are unable to overcome the bad run of cards, then just understand it’s time to take a much-needed break. Likewise, investors need to develop this skill as their investments are directly inclined to unexpected market reversals and industry revolutions. They should be emotionally strong to handle downward market trend in recession days.
To conclude, poker is a game that trains a person in ‘money-making’ and ‘money-saving’ skills that are equally important for an investor. So, start playing poker today to invest your money in assets that hold a net worth for long-term fruitful returns. Keep Playing Poker and Keep Investment Money!