top of page

Day Trading & Poker Players

A New era has begun, when it comes to day trading and talented poker players. Giving up the old conventional ways of looking for new Wall Street recruits, firms are now switching the focus on poker skills rather than business experience or connections. This new phenomenon of trade companies hunting down poker pros does not come as a surprise to many. With most firms now acknowledging that a poker player lacks in-the-field experiences, they easily make up for it in their quick decision-making and their number-crunching abilities.

So does a poker player really make a good Wall Street trader?

To answer this question, we must first look at what a trader is required to do when trading at Wall Street. A person, who is classified as a good trader is someone who has the ability to be profitable out of buying and selling stocks at the right time. Although this might sound easy, in actual fact it is not. Many traders take years to perfect their skills in selling and buying and no amount of knowledge will ever truly tell you what tomorrow will bring. They spend hours at end, watching the computer screen all day long, always ready to place an order when an opportunity comes. It is a fast-paced environment, where quick decision-making is a must and the difference between a profit or a loss could sometimes just be a couple of seconds. They have a hunger to increase their profits and are not scared to take a punt and most of all, they can always pick themselves up quickly after a bad day.

They have the ability to constantly work through probabilities in order to determine when another player is betting more or less than makes sense, given the cards on the table.

Considering we now have an overall view of what a stock trader is required to do and what kind of environment they are working in, we must now look at a good poker player, to understand why there is so much interest in them at Wall Street. Any good or professional poker player that is able to make a career or living out of poker possesses the following attributes and skills: They are able to have a successful bankroll management plan and have the focus and drive to improve it. They are able to make good judgments on the amount of money they are willing to risk for the return it will bring. The environment they are in is usually multiple screens and multiple poker tables, just like the traders on Wall Street.The image above shows you how Pro's use selective attention and have a system based on positive expectancy.

Poker players can focus on what they’re holding not only at one table but sometimes even exceeding 10-20 tables at a time with slip-second decisions. It is also important that most of the pro poker players have the ability to bounce back after big losses.

After looking at both a good Wall Street trader and good poker player we can see why so many companies are now considering poker players as their best bet. The crossover skills of being able to have good understanding of probability and algorithms, combined with great judgments, concentration skills, quick decision-making and the ability to come back after big losses would make them a valued team member to any trading company.

"In my opinion, a good poker player could easily make a good stock trader, but I would also believe that a poker player will still need to acquire a deep couple of months or even years of experience on the markets before he can become a real professional trader. It is not a matter of whether a good poker player could make a good trader, I think it is rather whether they want to do it. Considering that a talented poker player is able to pull around a 6-figure wage per year, works his own hours, doesn’t have a boss that puts the pressure on him to hit his targets, doesn’t have to battle traffic each day to get to work.

This make​​s you ask the question: Why would they make the change? Poker and day trading have a lot in common. ​They both are games that essentially focus on taking strategic and calculated risks in an attempt to earn the most profit. They are also both zero sum, so when you are winning money/chips, somebody else is, in turn, losing money/chips. Both games also require masterful emotional and tilt control, as well as a well-developed sense of selective attention and a system based on positive expectancy, which will allow you to pick up on the habits and tendencies of your opponents and make highly probable results.

Oftentimes, profitable day traders are also talented poker players, and vice versa. In the case of MOJO Day Trading, this is especially true, as I used to be a professional poker player. Emphasis on used to. So, why did I changed from a professional poker player to Day Trading?

While poker and day trading are very similar games that draw from the same intellectual and emotional skill sets, there are many differences that make poker a much bigger, luck based gamble.

You see, in poker you are frequently forced to gamble because of limiting factors, such as a low chip stack and high blinds. If you only have small amount chips left and your looking at semi strong hand, you have to move all in, you are essentially forced by game theory. The biggest FACTOR is the RIVER card. See I could go in with AA and play it great sucking in the "FISH" and all his chips to the very last card as he desperately is pulling for that hand he has only a 3% chance of winning. What happens in poker is they pull that 3% more often than desired. In trading there is NO RIVER CARD!! Once your profitable there is NO FOOL going to take your profit away. Simple see!!

In day trading, you are never forced to make a trade. There are no raising blinds or tournament clocks to worry about. THERE ARE NO RIVER CARDS!! Your battle is with yourself in forcing yourself to stay on the reservation, not force trades and remain patient.

The MOJO Poker Club is playing tonight at 9:30pm for the Spring Smash Tournament - held Saturday Night online @ Pokerstars Homegames.

Comments


Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square

Billing & General Support - 

Disclaimer: “Day trading can be extremely risky…You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund day-trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence indicates that an investment of less than $50,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $50,000 or more will in no way guarantee success.”

 

MOJO Day Trading is a provider of stock market education. MOJO Day Trading is not a registered as an investment adviser either with the U.S. Securities and Exchange Commission or any other federal, governmental or regulatory authority. The business services and activities of MOJO Day Trading do not requires any such registrations. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented are for educational purposes only. Such picks, alerts, set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. Any and all information discussed is for educational and informational purposes only and should not be considered tax, legal or investment advice. A referral to a stock, commodity, cryptocurrency is not an indication to buy or sell that stock, commodity or cryptocurrency.

 

MOJO Day Trading may publish testimonials or descriptions of past performance but these results are NOT typical, are not indicative of future results or performance, and are not intended to be a representation, warranty or guarantee that similar results will be obtained by you. Michael Rich’s experience with trading is not typical, nor is the experience of students featured in testimonials. They are experienced traders. Becoming an experienced trader takes hard work, dedication and a significant amount of time. Your results may differ materially from those expressed or utilized by MOJO Day Trading due to a number of factors. We do not track the typical results of our current or past students. As a provider of educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. 

 

Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

 

If you do not agree with any term or provision of our Terms and Conditions you should not use our Site, Services, Content or Information. Please be advised that your continued use of the Site, Services, Content, or Information provided shall indicate your consent and agreement to our Terms and Conditions.  

 

Copyright (c) MOJO Day Trading, LLC. 2012-2025. All Rights Reserved. No part of this presentation, webinar or any of its contents may be reproduced, copied, modified or adapted.

This does not represent our full Disclaimer. Please read our complete disclaimer
 

bottom of page