POKER VS STOCKS

[DesertCat]

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You sir are going to be disappointed if you believe you can keep that up.

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Making 1K/day on 200K (50Kx4) of daily margin buying power, is not "unreasonable", if you know what you are doing!!!

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That's a 100% annualized return on your trades (400% on your equity). Out of curiousity, would you be willing to share how it's done? I.e. a specific trade you've done, the rationale behind your decision to make the trade, and the results you achieved?

[MrBig30]

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You sir are going to be disappointed if you believe you can keep that up.

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Making 1K/day on 200K (50Kx4) of daily margin buying power, is not "unreasonable", if you know what you are doing!!!

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Its not unreasonable to do so for a week month or maybe even several years IF YOU ARE LUCKY. Just compare it to running good at poker. The long run is very long. And in the long run only the very lucky or those with insider information beat index by much IMO.

[Sniper]

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And in the long run only the very lucky or those with insider information beat index by much IMO.

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You are wrong! [img]/images/graemlins/cool.gif[/img]

I suggest you take a look at the performance records on marketocracy, for a simple example of many with the demonstrated skill to beat the "baseline" market averages (like the Dow or S&P).

Just like in poker, if you are willing to put in the time to learn "how to do it"... it is "easy".

just you can't do it doesn't mean it can't be done [img]/images/graemlins/wink.gif[/img]

wow havnt looked at this thread in a while and i see that it has grown. i will reread it in a bit but let me ask couple of questions. and clarify some things.

1. yes im obviously talking about a 5 figure bankroll.

i am thinking about investing about 5k to start with in the stock market. currently i multitable 400nl. i am making around 5k monthly. what kind of bankroll will i need to invest in the market to reciprocate the winnings i am making in poker. i jus want to have an idea of what kinds of returns is possible (someone mentioned 10%). and how much i would have to risk.

for the 10% return as someone stated is good. i want to clarify some things. if i invest 5k.. does that mean i can expect a 500$ return on the year? thats very small. please clarify how this works.

well if your doing normal invest in mutual funds then avg return based on historical performance is around 10%, if you actively invest and you become good at it, it is obviously much higher.

[AceHigh]

One point you are over looking is that you can't play poker with your entire bankroll. So if you can afford put some of your bankroll in stocks, it will increase your earnings. Since stocks are pretty liquid it's a lot more convienent to do this with them than real estate or bond's/CD's that mature on a certain date.

[edtost]

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Since stocks are pretty liquid it's a lot more convienent to do this with them than real estate or bond's/CD's that mature on a certain date.

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for bonds, is there any way for a small investor to get into the repo market to actually get a decent return with liquidity?

[Sniper]

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just wondering which on couple things. these questions are for people who played/plays high limit poker and does stocks.

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Based on this, I will assume for these responses you are talking about someone with at least a 5 figure bankroll...

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1. which one is more risky

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The RISK in both Poker and Stocks is controlled by YOU.

In Poker, you determine the level you play, the game style (fixed limit, NL, SNG, MTT, other games, etc) and how you play (TAG, LAG, etc), which directly affect both the mean and standard deviation of your results, in absolute $$ terms.

In Stocks, you determine Position size (100sh vs 1Ksh vs 10ksh), time frame (1hr, 1day, 1mth, 1 yr, etc), stops, risk/reward potential, type of stocks (Large caps, Small caps, Penny stocks, Momentum stocks, etc), which directly affect the mean and standard deviation of your results.

(Note: these are just examples, not an exhaustive list of all factors affecting risk in either case)

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2. which one is more profitable and by how much


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There is significant profit to be made in both Poker and Stocks by people who are willing to put in the research and analysis time to improve their skills and learn what works.

If you are not willing to invest much time in learning the "game", then you will likely have more success in the market. The average investor in an index fund will significantly outperform a "fish" at the poker table.

At high stakes, the Market is potentially far more profitable, if only because you can get your whole bankroll in play much easier.

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3. which one is easier to beat.

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This comes back to knowledge... to a knowledgable player, both are "easy" to beat.

[Warren Whitmore]

You are mixing two different things. Poker is a form of self employment. The stock market is a form of investing. Thinks about it this way if you have your money invested properly you could do absolutly nothing with it and it would be worth 60% more 5 years from now. If you do nothing with your poker bankroll it will be worth 0% more in 5 years.