If you were unsure about the similarities between poker and trading, take a look at this interesting article about a metals trading prop shop in London that has started a business backing on-line poker players. Here are some quotes from the piece:
Although online poker sites do not announce what proportion of their customers actually win money, professionals estimate that about 95 per cent of players lose.
Daily loss limits are seen as the cornerstone to developing profitable players. Losing your daily loss limit three times means you move down to playing with half that amount until the gods smile on you again.
The hours a player puts in are also vital to making money. Over time, good players will beat bad players, but luck is a factor. “The one thing employing people to play has highlighted is how little most player play,” says Conroy. “Considering it’s a game of skill and luck, you need to put the time in for the skill to show through.”
How much money do you need to play poker? …when it comes to bankroll, most people don’t have enough. The principle is never go broke. Being well bank-rolled means you never play with ‘scared money’. BadBeat’s John Conroy believes most players (probably 80 per cent) are under bank-rolled. They’re also playing at higher stakes than they should. To play $5-$10 no-limit hold ‘em efficiently you’ll need $40,000 to avoid running out of money after a month’s bad run, with a daily loss limit of $2,500.
In poker, a ‘bad beat’ is when you lose a pot against the odds – a strong hand beaten by a lucky one. The response? You just have to play more hands.
Source – ‘Dealer’s Choice’, FT Weekend Magazine, Septemeber 20/21 2008