Re: Stock Market as a game of Poker?
Making a trade is just like finding a "good spot" to make a play in poker.
You look for most of the properties you want to see in the scenario before the trade. Usually, you want at least a 1:3 risk to reward ratio minimum. Learning to judge which spots have the ratio you want is part science and part art form.
There are usually many other properties that have to be there (in the situation) to form the complete setup.
No matter what, you must cut losers, ride winners, keep bets small and manage risk. Just like poker, you can do this and still lose (slower) if you have a method with no quantifyable edge.
"If you don't know what your edge is, you don't have one." - Jack Schwager
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