With permission from Mr Subliminal of Las Vegas I have
reproduced and edited a comparison of trading and poker that he
|Opponents and their numbers are unknown.
|Opponents and their numbers are known.
Once a trade is initiated, a trader can do nothing more to
influence the outcome of that particular trade.
A player, because of the betting structure, may influence the
actions of other players and hence the outcome of the hand.
A trade, once initiated, may be closed out at any time
only by the trader.
A hand of poker, once initiated, may be prematurely completed
by the action of the player e.g. he folds, or by the action of
others e.g. everyone else folds.
|A trade does not have a predefined length of time.
|A hand of poker has a fixed, predefined length (of time).
A trade may be "prematurely" closed for either a profit or loss
by the trader.
|A player can only prematurely complete a hand for a loss.
At all times during a trade, the P&L is uniquely and
At all times during a hand, the player's equity in the pot can
only be subjectively estimated using incomplete information (in
As a corollary to the above, the intra-trade equity curve is
generally smooth and continuous.
|The intra-hand equity curve is jumpy and discrete.
A trader will rarely see profits snatched away from him
suddenly; his pain is of a more gradually built-up nature.
A player will encounter many "bad beats" with their
accompanying psychological pain.
|A trader may predefine profit target and stop loss.
A player will have different losses and profits depending on
the particular hand. In fact optimal play negates the notion of a