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Being a great investor is not all about luck and privilege. If you know your way around the stock market, you can make huge gains even without having surmounting capital.
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James Velissaris – Did you know Many Investors are Pro Poker Players? Let’s explore
Being a great investor is not all about luck and privilege. If you know your way around the stock market, you can make huge gains even without having surmounting capital. For most people investing and becoming a street trader seems like a challenging task; however, if you play poker well, there are good chances that you will be a great street trader as well. James Velissaris is an avid player of poker and uses his acumen time and again to further his game and sharpen his investing skills.
The connectionIf you think about it, playing poker incorporates a lot of statistics and mathematics, which are required for making predictions about the nature of the game. Similarly, investing is all about finding the right time to buy assets and sell them, which also requires making statistical predictions about the future. So, there is a good reason that street traders are much better at poker!
In an interesting research study conducted to find the association between the performance of hedge fund managers and their poker playing abilities, it was found that those poker players who have won enormously in poker tournaments, also gained more in investment returns every year. The study also found that fund managers who win bigger prizes in poker tournaments show a significant improvement in their investments as well.
While this has been provided by anecdotal data as well, this research successfully analyses a meaningful data set to come to a conclusion that there is a significant relationship between play poker and investment returns. No doubt that James scores so high in poker as well as investments!
Why does this happen?There are obviously some reasons why poker playing has been significantly associated with investment returns. The most prominent among them is that there are some skills required for playing poker that can be carried over to making investments.
One such important skill is patience. Those who succeed in poker tournaments are more efficient in holding their portfolio positions long hence doubling their investments and making solid profits. Besides, in both situations, a person needs to understand when and how to avoid the disposition effect. This effect can lead to holding onto failing investments for too long but selling financially scoring assets too quickly. Those who are skilled in investment and poker know that this is a mistake. Making investments and playing poker are dynamic trends that necessitate action on the go.
Another interesting skill that is applicable in both poker and investment is the ability to read people. Being able to understand cues and behavioral patterns comes in handy in both these situations and must be duly acknowledged.At the same time, both investors and poker players need to be able to look forward rather than backward. They need to be able to get past their loss and think ahead, planning future moves on the fly.
With these comparisons and commonalities between poker players and street traders, it is no surprise that poker players make great investors. James Velissarisproves this! With time, both these skills can be highly sharpened through the practice of either or both.SOURCE CREDIT: https://jamesvelissaris.wordpress.com/2021/09/18/james-velissaris-did-you-know-many-investors-are-pro-poker-players-lets-explore/
