The Relationship of Stock Market / FOREX / Cryptocurrency Trading to Gambling (and Life) | Part 2 of 3

For those who missed the part 1: I had mentioned that I was a profitable gambler before. In 2011, I wrote notes for tips and strategies (particularly poker). And upon reading again to those notes, I find a correlation between gambling and stock market/FOREX/cryptocurrency trading, and eventually in life.

Click here for the part one of this blog.

I forgot to mentioned that also I got an experience on trading. That's like year 2012 to 2014. Although I admit that I am not so-expert on that field, I can say that still I have a basic to advance knowledge for this thing. I might got some "insider" infos before, which I say is more precious than having technical skill.

(Note: Insider info may be illegal — it's like cheating on a gambling game by peeking on your opponents' cards. . . To prevent this, together with some schemes like pump-and-dump, our SEC made a rule that they capped the day-change of a stock to just +49%. . . Once a particular insider info explodes then it means everyone is late, and that's not insider info. Even if you're early but for someone who is a "fish", the whales are several steps ahead like a drug lord. You know, a typical whale is like Gordon Gecko said on the movie Wall Street, "Greed, for a lack of a better word, is good.")

Don't worry if I don't further discuss on the topic, but I will do it on my later blogs, plus how can there might be a doomsday on crypto-trading. . .

(Another note: Based on my Myers-Briggs Test, I am an ENTP. . . I am not a pessimist but I might know some possible roadblocks ahead.)

So stay tuned.

I hate to say it but as The Oracle from The Matrix had said, "I hate people giving bad news." You can check on my previous blog on how positive thinking can be dangerous.

My apologies. Back to topic:

My friends volunteered to pooled their funds and got me to manage it just to decide on when to pull the trigger. They told me to do penny stocks using the COL Financial Platform, because they don't want on blue chips which are more easier — but boring, long term and less reward involved (my friends were gamblers, too).

But growing up, my advice is we must prioritize investing in good-old fashioned blue chips stocks, or some mutual funds or VUL's handling it.

Ok enough for the intro.

Without further a do, this is the screenshot of page 2 one of my gambling notes circa year 2011:

Poker and luck

On my notes: The irony is that, before I got to learn poker, I believe in luck. But now I don’t. While admittedly, the elements of luck is involved, a good set of skills will get you winning in the long run. Poker is a matter of making good and bad decisions.**

I believe that luck can be created when we do some effort. There is no luck when there is no effort. There is no luck when we don't hustle.

In poker, there are too many strategies that you can apply. It looks so easy, but can be complicated once you got your feet onto it. You can't control the outcome, but if you look at the hand you have and odds and some gut instinct based on what other players' "tell" around you, you can predict the outcome — and with some good calculated risks you will get yourself a higher odds of reward.

Same in trading, it might look easy, because once you understand the basics you're good to go. . . but there are sets of skills that one can use . On using the technical analysis, there are many strategies that one can employ based on the patterns: Pennant, Cup And Handle, Ascending Triangle, Triple Bottom, Descending Triangle, Inverse Head And Shoulders, Rounding Bottom, Flag Continuation, Double Top, etc etc.

The beauty of poker and trading is that no one really knows what will happen next.

But by making the right assessment of the chart patterns, it is now your turn to make the right move with higher chances of success.

It is a matter of making good and bad decisions. In poker, the one who has the large stack of chips (or money) doesn't necessarily means he or she is the luckiest of all the players on the table. He just made more good decisions than those bad decisions. Or he made a big good decision/s and avoided big bad decision/s which put him ahead.

In life, we inevitably made bad decisions in the past, but the gravity, the impact and the totality of good and bad decisions is what made us now.

“Poker is a game you can learn in a few minutes, but will get you a lifetime to master.” Same applies to trading. It can be complicated once you get your feet to far. Especially if you are trading precious metals, hedge funds, derivatives, or CDO's, swaps — to "bet on" is, as far as I know, is still not available to Philippines which is good, with synthetic trades it will be a ticking timed atomic bomb which can devastate an economy.

Tactic vs Strategy

On my notes, implicitly it said: "Strategies always varies."

Yep, it's like paper-rock-scissors. It is like Manny Pacquiao can easily knocked out Ricky Hatton but not Mayweather. Styles varies. You can raise a baby and be effective using a particular style, but that style can't be effective on another baby.

For trading, some stick to fundamental analysis. Some say, "why bother, if there is technical anlysis?" Technical analysis is a reflection of fundamental analysis. But I say, it depends on what stocks you are looking at.

Life goes on

In trading, and in life, you will taste defeat no matter what. No one is immune. No one is so special. But one fact I know is that for those who persist, even on the face of diversity: wins.

The other poker notes on the screenshot is self-explanatory. Trading can be brutal if you make one huge mistake. Again, as I said, don't do anything stupid — just like Steph Curry at a crucial moment on a Game 7 of the NBA Finals trying to be cool by trying a fancy behind-the-back pass:

Don't do that.

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To be continued. . .

PS: Sorry if I might scare you and the serious tone on this matter.

But please stay tuned, bawi na lang ako sa Part 3, as I saw it on my notes it is very funny (and mean.)

Thanks for reading. #steemitpowerupph #steemph #steemitfamilyph #untalented