If you’re looking for investing tips outside the box, then you have to look into poker for inspiration. In fact, both have similarities that will help you make better decisions with your resources and assets.
Poker is a game where you balance recklessness and wisdom to win the pot. A professional poker player will not only use his character traits and skills to beat the competition but he or she will also use his resources to push players out of the game.
There are times when a player goes on a win streak and feels on top of the world. However, it’s not rare for a player to incur losses and bring them to the brink of losing all his or her money completely. What separates professional poker players from the rest is their ability to wake up the next day and play the poker game, regardless of what happened the day before.
Without going into further detail just yet, the same principle applies to investing. You don’t just give up after making a string of bad decisions with your resources. If you truly have the passion for investing, then nothing will stop you from getting back up on your head and continue investing all the odds.
In this post, you will learn specific investing tips from poker to help you make wise investments moving forward.
3 Investing Tips from Playing Poker
1. Grow your wealth
Investing is all about increasing your money. Spending money on things that depreciate over time is one way of not growing your wealth. Once your investments pan out and generate lots of income from them, it’s easy to treat yourself by buying things for you for a job well done. It’s even easier to fall down this path of buying things endlessly and showing off your earnings to people.
People who walk the path to consumerism happens aren’t mean to do poker for the long run. While there’s nothing wrong with showing off your wealth, the poker “sharks” are never content with their winnings and continuously play the game and improve their poker strategies to generate more wealth.
For investors, it’s all about finding new ways to make money. Whether it’s finding new passive income streams and creating new businesses, it’s a matter of planting the seeds for acquiring even more profit in the long run. The reward comes from developing enough wealth to become financially free in your lifetime.
2. Play the odds
As mentioned earlier, luck is an intrinsic part of poker. You can only control so many variables when playing the game. Once you have your hand and make a decision, all bets are off. Your destiny depends on what cards will show on the flop.
Therefore, you need to make wise and logical decisions based on the factors right in front of you. Aside from the chances of your hand winning, you need to read other players by determining their strengths and weaknesses and consider them in your decision-making process.
Investors have to deal with the same variables every time they are forced to make a decision. You can only analyze the factors that are presented to you at the moment. Because you can’t guarantee whether an investment will pan out or not, there’s risk involved. However, what you can do is weigh in all the factors and make the best possible decision for your investment. It may or may not be the right decision in retrospective, but it is the best decision at the moment.
This is the beauty of investing – nothing is everything as it seems. Therefore, you need to acquire and develop the skills of weighing your options and playing the odds to make the best decision everything.
3. Reduce risks
In poker, you have to put where your money is. However, is there a line that you shouldn’t cross in poker? Is everything on poker up in the air?
Since poker is also a logical game, you need to control the amount of risk you will be taking with your every move. Since there’s always a chance that you will lose a game even if you have a killer hand, you need to be aware of the money you will potentially lose and need to be okay with that.
The rule you can follow is to never risk more than 5% of your portfolio. As an investor, you need to keep the risk at bay so you can freely make decisions because they are the best ones to make and not due to survival.
Which Investing tips Apply to you the Best?
There are a lot more investing tips that you can learn from playing poker. However, the ones above cover a lot more than enough ground to help you come up with a sound strategy to make the best choices in your investments.