Just came across an interesting website, http://www.texasholdeminvesting.com . I’ve been playing Texas Hold’em poker for a while now via Facebook/Zynga and unlike past experiences I now really enjoy my time playing it. I’m not sure why in the past I didn’t catch the holdem bug. If I try to think about it then maybe it’s a developmental thing. In the past I was attracted to holdem, and did reasonably well but found it too similar to trading on the emotional side and therefore a bit of a drain while now that aspect disappeared and I can play it for hours.

Anyways, as the title of the post and the website indicate there are countless parallels between investing / day trading and Texas Holdem Poker. In fact the Texasholdeminvesting website came up with a book dedicated to identifying the similarities. I’ve just downloaded it (free intro), and looking through he’s got most of the topics covered, like: managing emotions, thinking in probabilities, performance analysis, and bankroll size and position sizing. I’m hard pressed to find a game with more similarities with trading than poker. Depending on your personal traits poker can be a good way to sharpen some trading related skills or just have some fun during market downtime.

H/T to Meir.

P.S. If you’re playing texas hold’em and haven’t tried Zynga I think it’s one of the nicest free fake money poker out there that I’ve come across. If you’re on my facebook list give me a buzz if you want to play a few rounds.

Tags: Buzz, Day Trading, emotions, experiences, facebook, game, market, parallels, performance, performance analysis, position sizing, probabilities, stocks trading, texas hold em poker, texas holdem poker, trading, Zynga

That this would happen eventually I had no doubt, but the speed by which it happened is still amazing. I still haven’t bought a Kindle 3G so I’m still using my old Sony PRS-505 but I’ve started buying and downloading booksfrom Amazon and loading them into the Sony reader (this sometimes requires a bit of processing). There are a bunch of things which are convenient with the Amazon model and its ebooks (the format not being one of them ;-), I especially like is the free sample you can request which gets sent instantly to either my PC or my Android phone. It’s much easier to check out books this way and look at the table of contents. If I were to change anything in the way Amazon sends the books I would have them send the Amazon customer reviews along with the sample. I usually just ignore the top reviews and go straight to the 1-2-3 star reviews to see what issues and drawbacks people found with the book. Saved me from buying a bunch of books which otherwise seemed like a decent read if you just look at the title and raving reviews.

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It’s been a while since I’ve updated my list of Best Trading Books which I recommend to traders looking to up their game. And there’s a good reason for that, I didn’t see anything interesting out there that would make it as a “Top Trading Book”, that’s till I recently came across this fantastic book. First I need to say this isn’t a paid or incentive driven review, I didn’t get a free book, and I have absolutely no affiliation with the writer. I just think that One Good Trade is a damn good trading book which almost any trader can benefit from.

I did skip the first couple of chapters (mostly prop trading related) but then instead of skimming through to the end like I would do with most new “get rich quick” / secret formula trading book for stocks / futures / options and all other instruments on the planet, I actually started seeing some really good material in it which kept me reading. It’s like one of those gem of a trading book that Dr. Brett Steenbarger publishes (his 2 books Enhancing Trader Performance and The Daily Trading Coach are absolute must read).

The author of One Good Trade, Mike Bellafiore covers almost everything you can think of in terms of the journey to becoming a good trader. From specific advice on Tools of Success:

To real world examples and explanations on sound trading building blocks such as

And more advanced stuff such as reading the tape, high frequency trading, when to press your winners etc.

Even if you’ve read dozens of trading books in the past (who hasn’t..) I would still encourage you to pick up this one.

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I’m reading the excellent book Outliers by Gladwell, it’s a fascinating analysis of success and how it happens, interwoven with biographies, history, psychology, science and social research. As a background work, I found it a good complimenting book to this one which covers more specific tools one can start using straight away.

Some of the most interesting and engaging topics to read about. Reading the paragraph below just now made a lot of sense to me, especially after I was talking to a friend yesterday over some beers and German food. And ended up “complaining” to him that I find it difficult to detach myself from the markets and the research and projects I’m involved in. I tend to only do that when I’m on vacation. This wasn’t always the case. Back when I was working for the man, from 6pm and on weekends I couldn’t care less about work. The following snipet from the story about the Borgenicht, a poor Jewish immigrant family arriving in New York in the turn of the previous century pretty much explains why.

When Borgenicht came home at night to his children, he may have been tired and poor and overwhelmed, but he was alive. He was his own boss. He was responsible for his own decisions and direction. His work was complex: it engaged his mind and imagination. And in his work, there was a relationship between effort and reward: the longer he and Regina stayed up at night sewing aprons, the more money they made the next day on the streets.
Those three things — autonomy, complexity, and a connection between effort and reward—are, most people agree, the three qualities that work has to have if it is to be satisfying. It is not how much money we make that ultimately makes us happy between nine and five. It’s whether our work fulfills us.

Eventually the Borgenichts’ business they started in their $8 a month apartment with one sewing machine became one of the largest manufacturers of clothing in the US.

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Good news for ebook readers, Kindle International Edition is now available to overseas customers outside the US (for $20 extra on top of the US price). Well at least to some of us. A brief check of countries in Asia shows you can get it if you live in: Hong Kong, Philippines, Vietnam, Bhutan and Mongolia but not in Singapore, Thailand, Malaysia, South Korea or China. Probably has to do with the books delivery method over the phone network and working with local providers to support/allow that. Still, it’s a move in the right direction.