Quote from NY_HOOD:
with trading,if a trade is going the wrong way i jump out with very minimal damage. poker,you can fold but your money is gone think trading is much more predictable, i trade catalysts so i usually have a good feel as to which way the momentum is.
Dont you lose your money if you jump out of a trade.
You also lose if you fold...very similar in my opinion.
Take small losers, increase size/bet with better probabilities.
There are a lot of similarities in the two cards and trading.
The major differences are Poker is a game of static probabilities
Trading the probabilities change with the same trade. To be put another way the same trade put on last week at the same price has a different probability of a win. AA vs AQ prob is always the same.
Now you could be bluffed off a winner in poker, just as you could be "bluffed" or head faked out of a trade.
Also more factors go into making a trade...time is a big factor that poker never takes into account.
( i.e Am I trading on 1 minute 5 min, daily , weekly basis.) Can I hold though an earnings report, economic # like unemployment or beige book or crop report? Will terrorism affect my trade? A shutdown in oil supply? How about the possibility of an exchange going down or losing an internet connection?
