This is the Daniel Negreanu.
6x poker world champion and 7th richest poker player in the world.
He said: "If you focus on the result, you're focusing in the wrong place."
Here's my favorite 7 poker concepts that made me a better trader:
6x poker world champion and 7th richest poker player in the world.
He said: "If you focus on the result, you're focusing in the wrong place."
Here's my favorite 7 poker concepts that made me a better trader:
1) Edge is Subtle
At the highest levels, you're not going to find blatant edges to exploit your adversary.
Most edges will be very subtle.
The same happens in the most liquid markets where there are no obvious or easy edges.
Most edges are subtle and not easy to capitalize.
At the highest levels, you're not going to find blatant edges to exploit your adversary.
Most edges will be very subtle.
The same happens in the most liquid markets where there are no obvious or easy edges.
Most edges are subtle and not easy to capitalize.
Here's Jim Simons talking about finding subtle anomalies and putting them together.
If an edge is really obvious, trust me, everyone knows about it.
Which negates it.
All edges have limited capacity, and in a competition, like trading is, everyone's fighting for their share.
If an edge is really obvious, trust me, everyone knows about it.
Which negates it.
All edges have limited capacity, and in a competition, like trading is, everyone's fighting for their share.
2) Cutting losses is hard
What makes really good players is recognizing a situation that is very dangerous, and to jump ship.
Even if their hand initially was really good.
Most people won't cut their losses in a desperate attempt to recover.
That's a very dangerous game.
What makes really good players is recognizing a situation that is very dangerous, and to jump ship.
Even if their hand initially was really good.
Most people won't cut their losses in a desperate attempt to recover.
That's a very dangerous game.
3) Why am I losing?
One of the hardest things know in poker is the why of a losing period.
- Are my decisions not being good?
- Is it because my opponent just being better?
- Bad luck?
Those streaks will get you to question yourself, especially newer players.
One of the hardest things know in poker is the why of a losing period.
- Are my decisions not being good?
- Is it because my opponent just being better?
- Bad luck?
Those streaks will get you to question yourself, especially newer players.
The exact same thing happens to all of us in trading.
We can go through weeks, months even more than a year of drawdown, and that affects us.
Especially if we don't know why we are in a drawdown.
Fortunately, for most strategies, we have benchmarks to compare performance to.
We can go through weeks, months even more than a year of drawdown, and that affects us.
Especially if we don't know why we are in a drawdown.
Fortunately, for most strategies, we have benchmarks to compare performance to.
4) Chasing the wins
Beginners luck can be detrimental.
Never confuse luck with skill.
If you continue to chase down past wins, despite not being worthwhile anymore, you will eventually destroy your finances.
In markets, edges decay all the time.
Adapt.
Beginners luck can be detrimental.
Never confuse luck with skill.
If you continue to chase down past wins, despite not being worthwhile anymore, you will eventually destroy your finances.
In markets, edges decay all the time.
Adapt.
5) Pick your tables
Part of the skill as a poker table, is finding tables where you're profitable.
If you play in tables against the top players, you better be better than them to beat them.
Find where you're not the "sucker", or be good enough to compete against the best.
Part of the skill as a poker table, is finding tables where you're profitable.
If you play in tables against the top players, you better be better than them to beat them.
Find where you're not the "sucker", or be good enough to compete against the best.
One of the things I talk a lot about, is the idea of going where more sophisticated players can't.
If you're looking for super consistent, high returns strategies, in the most liquid markets, you will have to compete with the best of the best in the business.
If you're looking for super consistent, high returns strategies, in the most liquid markets, you will have to compete with the best of the best in the business.
If you think you can't compete, and you probably can't, you should move to "tables" where you can.
Specialize in a niche that perhaps has a lot of risk, or is too hard to work with, and be the best there.
That is a far much better bet, than competing with the best.
Specialize in a niche that perhaps has a lot of risk, or is too hard to work with, and be the best there.
That is a far much better bet, than competing with the best.
6) Losses
Daniel lost $1.1M in 48 days.
There are moments where he says he was broken, hit rock bottom.
There's a feel of hopelessness, even when he was playing really well.
Despite that, he lost every one of them.
Losses are cost of the ticket to play the game.
Daniel lost $1.1M in 48 days.
There are moments where he says he was broken, hit rock bottom.
There's a feel of hopelessness, even when he was playing really well.
Despite that, he lost every one of them.
Losses are cost of the ticket to play the game.
7) Mental game
If you focus on the result, you're focusing on the wrong thing.
You should focus on making the best possible decisions.
And that doesn't mean you automatically win, it just means you're doing your best.
The distribution of wins and losses is random.
If you focus on the result, you're focusing on the wrong thing.
You should focus on making the best possible decisions.
And that doesn't mean you automatically win, it just means you're doing your best.
The distribution of wins and losses is random.
I see a lot of similarities of how a poker player thinks vs a trader.
It's all about having an edge, applying sound risk management, executing well and managing drawdowns.
Seems simple, yet so hard to do for long periods of time.
I hope you've enjoyed this!
It's all about having an edge, applying sound risk management, executing well and managing drawdowns.
Seems simple, yet so hard to do for long periods of time.
I hope you've enjoyed this!
Sources:
1) youtube.com
1) youtube.com
Finding viable ideas for trading strategies is extremely hard.
I've decided to build a database of them.
Here's what you'll find:
- New strategy every week (52/year)
- Python code for each
- Access to the full archive
Join over 4,000 readers here:
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I've decided to build a database of them.
Here's what you'll find:
- New strategy every week (52/year)
- Python code for each
- Access to the full archive
Join over 4,000 readers here:
pedma.carrd.co
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