The online poker market in India is pegged at Rs 250 crore at the moment. By 2020, poker in India is expected to cross Rs 1,000 crores.
The perception around poker in India is changing rapidly and people are accepting it as a Game of Skill. Way back in 2015, MIT introduced a course on Poker Theory and Analytics.
IIM Kozhikode also offers a course on ‘Game of Poker: Competitive Strategy’, which was introduced in 2014-15. The course on strategy of poker helps students in applying these concepts in business or investment.
Here are 7 investment lessons from a game of poker that will make you go Mad Over Poker as well.
Lesson 1:Calculated risks
Poker is all about taking calculated risks. Depending on your hand that you have been dealt, the stage of tournament you are at, your bankroll (cash) you take calculated risks in hope of winning more. Same skill can be applied to investing as well. Every investment you make has some risk attached to it. The key to a successful investment is taking calculated risks to gain maximum profits and minimum losses. Big gains be it investment or poker come from well timed calculated risks.
Lesson 2: Long-term thinking
A successful poker player is the one who is focussed on long term goals and is patient. In short term,luck may play a role but in the long term, skill plays an important role. But the key to success is to stick around and persevere.
Like in a game of poker, investment too requires patience and can take years to yield any tangible results.
Lesson 3: Knowing your numbers
Knowing your numbers is important in both poker and investing. Good poker players know the odds,outs and are good at number crunching. Same can be applied to investing as well. A good investor knows the fundamental analysis and technical analysis for their stocks.
Lesson 4: Keeping emotions in check
Keeping emotions in control is important in both investing and a game of poker. A lot of poker players get angry or frustrated when they are losing in short term and it ends up costing them dearly. In the same way, keeping emotions in check is important while investing to maximize ROI
Lesson 5: Ability to read the market/opponents
A successful poker player is one who knows his opponents and his playing strategies. He is able to read opponents’ actions, cards that might be drawn and strategy the players will employ.
Similarly, a successful investor is the one who is knowledgeable about the market and gauging trends of the market
Lesson 6: Studying the game/markets
Players make time and effort to study the game when they are not playing. Similarly, investors too need to invest time in studying the market when they are not investing.
Lesson 7: Being disciplined
Discipline is important whether in game or stock market. Good players/investors are disciplined and play within their means.They don’t risk 30% of their bankroll in a single stock/game.
Perhaps the most important investment lesson a game of poker teaches is knowing when to quit.
Amit Kanodia is the Co-Founder & CEO of MadOverPoker.