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[Thread] - Poker Teaches:
In this thread I will tell you about some concepts I have learned from poker, which is applicable to real life and investing:
Grab a coffee and take your seat:
In this thread I will tell you about some concepts I have learned from poker, which is applicable to real life and investing:
Grab a coffee and take your seat:
Poker Teaches - Risk/Reward Analysis:
This is the practice of weighing two or more expected outcomes and scenarios.
Investors and poker players will not be successful in every investment or hand played.
Here is a simplified example:
This is the practice of weighing two or more expected outcomes and scenarios.
Investors and poker players will not be successful in every investment or hand played.
Here is a simplified example:
Poker Teaches - Money Management:
If you play too high stakes for your bankroll you will be wiped out.
If you go on a losing streak, you must also have the discipline to move down in stakes.
This concept is intertwined with discipline and risk & reward.
If you play too high stakes for your bankroll you will be wiped out.
If you go on a losing streak, you must also have the discipline to move down in stakes.
This concept is intertwined with discipline and risk & reward.
Poker Teaches - Table Selection:
In poker it means finding the games with players that are worse than you.
If you want to catch fish, fish where the fish are.
In poker it means finding the games with players that are worse than you.
If you want to catch fish, fish where the fish are.
Poker Teaches - To Go For It:
In poker you will have to bluff, and it might be enough to bet flop and turn.
If you want your opponent to fold a better hand you must sometimes bet flop, turn and over-bet the river.
In life: being scared, but completing the task at hand.
In poker you will have to bluff, and it might be enough to bet flop and turn.
If you want your opponent to fold a better hand you must sometimes bet flop, turn and over-bet the river.
In life: being scared, but completing the task at hand.
Poker Teaches - Decision Making:
Decision making is based on expected value.
Expected value is an ideal way to make decisions.
EV allows you to quantify and incorporate risk into your decision making, as well as balance potentially good and bad outcomes in the same equation.
Decision making is based on expected value.
Expected value is an ideal way to make decisions.
EV allows you to quantify and incorporate risk into your decision making, as well as balance potentially good and bad outcomes in the same equation.
Poker Teaches - Compounding:
You can deposit $100 and start playing micro/low stakes.
Winners will be able to compound their winnings and play higher and higher stakes.
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Mistakes pre-flop will compound and is likely to induce even bigger mistakes post-flop.
You can deposit $100 and start playing micro/low stakes.
Winners will be able to compound their winnings and play higher and higher stakes.
-
Mistakes pre-flop will compound and is likely to induce even bigger mistakes post-flop.
Poker Teaches - Handle Losses:
Poker isn't about how you play when you are winning, but how you deal with loosing.
Loosing is a part of the game, because of the short-term luck factor.
Dealing well with adversity and inevitable losses will make you stronger.
Poker isn't about how you play when you are winning, but how you deal with loosing.
Loosing is a part of the game, because of the short-term luck factor.
Dealing well with adversity and inevitable losses will make you stronger.
Poker Teaches - Avoid Prejudices:
Poker is a level playing field activity.
Race, gender, religion, physical attributes does not matter.
Underestimating your competition based on these factors is not only wrong, but in poker you will be punished relentlessly.
Poker is a level playing field activity.
Race, gender, religion, physical attributes does not matter.
Underestimating your competition based on these factors is not only wrong, but in poker you will be punished relentlessly.
Poker Teaches - Thinking in Probabilities:
In order to make the right decisions you must weight the potential gain/loss in combination with the probabilities of different outcomes, good or bad.
This is intertwined with the concept risk and reward.
In order to make the right decisions you must weight the potential gain/loss in combination with the probabilities of different outcomes, good or bad.
This is intertwined with the concept risk and reward.
Poker Teaches – Patience:
It's been said that poker takes only minutes to learn, but years to master.
In order to get better as a player, investor or anything else you will need a long attention span. It's not done overnight.
It's been said that poker takes only minutes to learn, but years to master.
In order to get better as a player, investor or anything else you will need a long attention span. It's not done overnight.
Poker Teaches – Patience 2:
Sometimes in poker you will have to wait for the right situation.
Folding for a long-time can be frustrating, but absolutely necessary.
Here's Phil Ivey not being patient, and gets punished:
Sometimes in poker you will have to wait for the right situation.
Folding for a long-time can be frustrating, but absolutely necessary.
Here's Phil Ivey not being patient, and gets punished:
Poker Teaches – Benefit of Position:
In poker you will make most money at the button.
This is because you will have the informational advantage, always acting last post-flop.
Taking decisions having the informational advantage will make you money. In poker and investing.
In poker you will make most money at the button.
This is because you will have the informational advantage, always acting last post-flop.
Taking decisions having the informational advantage will make you money. In poker and investing.
Poker Teaches - Self Consciousness:
Most people deny unpleasant realities about themselves, other people, and many other subjects.
If you deny reality about yourself (table-image), you will lose.
This is intertwined with concept of adapting.
Most people deny unpleasant realities about themselves, other people, and many other subjects.
If you deny reality about yourself (table-image), you will lose.
This is intertwined with concept of adapting.
Poker Teaches - Adapting to Others:
In poker, you have to deal/play with different types of opponents:
Aggressive and Passive - Nitty and Loose
If someone is playing too tight, you should open up.
If someone is playing too loose, you should play tighter, or fight with fire.
In poker, you have to deal/play with different types of opponents:
Aggressive and Passive - Nitty and Loose
If someone is playing too tight, you should open up.
If someone is playing too loose, you should play tighter, or fight with fire.
Poker Teaches – To Collaborate:
Collaboration is a practice whereby individuals work together as a team, helping each other.
In order to succeed within a field it is really helpful having a
group of people that can help each other.
Collaboration is a practice whereby individuals work together as a team, helping each other.
In order to succeed within a field it is really helpful having a
group of people that can help each other.
Poker Teaches - Play the Hand You’re Dealt:
It is easy blaming others for lack of success.
Some people waste time and energy complaining about looks, their parents weren't rich or anything else.
Phil Ivey would never complain about a bad beat or being card dead.
It is easy blaming others for lack of success.
Some people waste time and energy complaining about looks, their parents weren't rich or anything else.
Phil Ivey would never complain about a bad beat or being card dead.
Poker Teaches - Depersonalize Conflict:
Poker teaches you to depersonalize conflicts because it is based on impersonal conflict.
The objective is to win each other's money, and everyone's money is the same. It doesn't matter whether you win or lose to Joe, Donald, or Bill.
Poker teaches you to depersonalize conflicts because it is based on impersonal conflict.
The objective is to win each other's money, and everyone's money is the same. It doesn't matter whether you win or lose to Joe, Donald, or Bill.
Poker Teaches - Handling Deceptive People:
Many people are EASILY deceived.
Look at the amount of people who gets tricked by info-commercials that promise quick fixes:
Get rich fast
Loose 15 lbs in 14 days
Larger
pills
Love-bombing
- Naive people will get exploited.
Many people are EASILY deceived.
Look at the amount of people who gets tricked by info-commercials that promise quick fixes:
Get rich fast
Loose 15 lbs in 14 days
Larger
pillsLove-bombing
- Naive people will get exploited.
Cont.
In poker you constantly bluff, sandbag, and deceive each other.
You will learn how to recognize when someone is telling the truth or lying.
Those skills can help you to spot and react effectively to deceptive people.
In poker you constantly bluff, sandbag, and deceive each other.
You will learn how to recognize when someone is telling the truth or lying.
Those skills can help you to spot and react effectively to deceptive people.
Poker Teaches - Emotional Control:
Poker players must make decisions based on logic and the information other players are giving you.
You can not control the outcome.
Play every hand as good as you can.
Decisions based on emotions will be a disaster.
Poker players must make decisions based on logic and the information other players are giving you.
You can not control the outcome.
Play every hand as good as you can.
Decisions based on emotions will be a disaster.
Poker Teaches - Long Term Thinking:
Poker players learn that a bad play can have good results and vice versa, but that making decisions with positive, long-term expectation (EV) is the key to success.
Poker players learn that a bad play can have good results and vice versa, but that making decisions with positive, long-term expectation (EV) is the key to success.
Poker Teaches - How to Plan:
In order to play a hand well you must have to plan how to react on future streets, based on the different cards that gets dealt and the opponents actions.
In order to play a hand well you must have to plan how to react on future streets, based on the different cards that gets dealt and the opponents actions.
Summary of some concepts you can learn from poker and apply in real life:
Risk/Reward Analysis
Table Selection
To Go For It
Decision Making
Compounding
Handle Losses
Thinking in Probabilities
Benefit of Acting Last/Informational Advantage
Avoid Prejudices
Risk/Reward Analysis
Table Selection
To Go For It
Decision Making
Compounding
Handle Losses
Thinking in Probabilities
Benefit of Acting Last/Informational Advantage
Avoid Prejudices
Self Consciousness / Awareness
Adapting to Others
Long Term Thinking
Logical Reasoning
Bankroll/Money Management
Handle Deceptive People
Play the Hand You're Dealt
Adapting to Others
Long Term Thinking
Logical Reasoning
Bankroll/Money Management
Handle Deceptive People
Play the Hand You're Dealt
Thanks to @davidperrel for indirectly pitching the idea for this thread, when he talked about the concept of table selection in this thread: https://twitter.com/david_perell/status/1259597744131371008
