Why Poker Players Often Become Millionaire FX Traders

This trading tip is all about why poker players tend to make great traders in fact, a huge number of poker players have become trading legends and the reason is simple - the skills you need to win at poker are exactly the same skills you need to win at Forex trading. Let's look at the similarities in more detail.

What makes the poker player such a good trader is the way they are able to trade with patience and discipline which are two traits most traders lack. Before we look at the importance of discipline, lets look at a major error traders make in terms of how and why prices move.

Most Forex traders think the markets move to science or some higher force and can predicted in advance and think the market can be beaten. The markets cannot be predicted in advance of course but you can win, if you play the odds correctly - so how do you trade the odds?

In a game of poker, the good players have no idea what hands other people may have or what order the cards will come out of the deck but what they do know, (by looking at their hand and the cards dealt) is their odds of success based on the odds and they play with the odds firmly in mind.

When a Forex trader starts to lose, he holds his losses and hopes they they turn around, the poker player doesn't, he will pass hands by or folds, until he sees the right opportunity and when he does, he plays his hand. He knows that one good hand, can make up for 5,10 or more folds he had previously. What he is doing is trading with discipline, keeping losses small and being patient and waiting for the right opportunity and running his profits to cover his losses.

Contrast the above, with most how most traders trade - they run losses and trade to often, taking low odds hands and lose. The poker player knows the rules of the game but most Forex traders don't follow the rules they need to win at Forex and the result is disaster.

Forex trading is the same as poker in many ways - you are trading the odds, you will have losers and need to accept them and you need to be patient and wait and hit the big trends hard.

There is an old poker saying and it applies to trading and its this:

" There's a time to hold them, a time to fold them and a time to get out of town fast!"

The above statement is about survival in a game of poker but it also applies to survival in the markets. Any Forex trader to win, needs to trade with the same discipline as a poker player and play by the rules of the market - you cannot impose your will own rules - the rules of the market are the rules!

To learn Forex trading is simple and anyone can learn a strategy which can make money but to make money with it, you need to trade with discipline.