Thread by @BeSensibull

On a poker table the day before yesterday, a wise man told me Twitter where you give gyaan. Here is my first attempt, connecting the similarities between poker, and trading #poker #trading

Learn to survive
If you don't bet, you can't win. If you lose all your chips, you can't bet. Learn the balance. Survive your initial days until you learn. Don't go against the pros on your first night with a pile of cash. Start small. #poker #trading

Table selection
If you earn less than 100k, don’t play tables with 25k buy-ins against millionaires. If you lose, you are out in one game. Similarly, if you have a 2L trading account, you shouldn't trade 4 Lots of Yes Bank at 20x leverage. Try 1 lot Nifty. #poker #trading

Fold most of the hands.
Great players wait for the right hand. Most of the time, you get cards 3-9, 4-Q, 2-6, etc. They lead to nothing. If you play them and lose capital, you will not have money for a good hand. Similarly, save your money for the good trades. #poker #trading

Patience
Connected to the last one. Pocket aces come once in 221 hands. Same for other big pockets. You will get a great hand once 30-40 hands. The idea is to be patient until that hand comes. #poker #trading

Protect your stack
If you lose all your chips, you can’t bet. Which is why you should protect your chips without going all-in on marginal hands. Much like how you should not buy deep OTMs with all your cash, or bet on uncertain markets hoping to get lucky. #poker #trading

Act after everyone else has acted
In poker, position is everything. If you act after everyone, you have more information. Similarly, in trading, wait until the trend gets clear. Wait till OI builds up, and FIIs unravel their bets. You will miss some initial move, but who cares?

Pot Odds
Betting $100 for a pot of $700 and drawing the nut flush on the flop? That’s great. $500 for $800 pot drawing an inside straight with one card to come? Nope. Markets analogy? Think risk-reward ratio and option premia.
#poker #trading

Understand the math
In the last tweet, the first situation had an almost 40% chance of winning. The second had less than 10%. Similarly, you need to know your breakevens, theta, trading costs, taxes, etc.

One Big Hand Vs many small hands
You don't get rich with Royal Flushes or fours of a kind. You do in many small hands with pairs, straights etc. Similarly its not on some event that you become an overnight millionaire. You do it in many small moves and the occasional big ones.

Stack Size
A big stack is the best thing. If you have it, you can take good risks. If you are short-stacked, you have one or two VERY SELECTIVE all-in moves left. The same goes for trading account size. Your greatest friend is your huge trading account. Make it huge.