How Blackjack Can Make You a Better FX Trader
Apr 23, 2014
Blackjack can make a player proficient at a number of areas, however there is a striking similarity between foreign currency trading and the game of 21.
Many games are known to involve a specific set of skills that are required in order to excel at the game.
Sufficient poker play will train a player to become cunning and bluff his way to a win, which will have the capacity to transform a normal player into an international spy.
Roulette can teach gamblers to diversify the numbers they’re betting on, and that way create higher odds for themselves to win.
Blackjack, on the other hand, holds the most similarities when it comes to FX trading. Not only will it showcase how a person can learn from some essential point, but also do it with a certain degree of panache.
Card counting system applied to trading
When a player practices a certain skill, he is destined to eventually become quite proficient at it, which can also help him in other exploits.
• Card counting benefits traders
• Dealer is a business mentor
• Teamwork and disciplined strategy go a long way
The card counting system in blackjack is one skill that when practiced can be highly lucrative for anyone. This is one of the main similarities between the two crafts of money making.
In order to make full use of this strategy, a player has to calculate the odds of the incoming cards, before deciding on how much to bet to make an almost guaranteed win.
The same principle is to some extent applied to foreign currency trading. A trader only goes through with a trade once he knows that the odds are in his favor, at which point he will most likely bet big.
Since the nature of the game is ever changing, so are the wins and losses. In the short run, this practice will not be of much use to either a player or a trader, for that matter.
However, this techniques is designed for the long run, as betting with odds on the player’s side is going to bring about a great deal of success.
A prominent example of when the card counting technique was utilized in both areas concerns a millionaire called Blair Hull. He is a blackjack player turned trader, which has made him millions from employing this scheme.
The dealer serves as a business mentor
Many traders setting out to enter the currency trading business might many times have a person to consult with and seek advice from. That person is generally referred to as a mentor.
If a blackjack player does not have a person of this sort by his side, then the closest thing to a mentor could be the dealer.
Although dealers work for the casino, they would like to get a percentage of your winnings, which comes in form of blackjack tips.
Therefore, if a player is undecided, the dealer may provide decent advice on what to do with one’s next move. If a win occurs, then the dealer gets a nice tip.
Learning from a dealer can be compared to learning from a business mentor telling one how to play the currency market. Visiting the casino to play the game of 21 and talking to the dealers on a regular basis, will give one insight on how the game functions.
If one were to transfer what he learned from the dealer to the trading floor, then he would undoubtedly thrive in the currency exchange business.
Additionally, the prior advice and proper guidance would serve the trader a great deal, as he would be able to detect potential pitfalls, but also more importantly realize success once an opportunity is given.
Maintaining a disciplined strategy and working with a team
Along with other prominent players, Blair Hull also professed how he was far more successful in beating the house, when he would work with a team.
Not only that, but when the team sticks with a predetermined and worked-out strategy, then the odds are substantially increased in favor of the team.
The bet size can increase drastically, if a group of people come together as a team to a blackjack table. By increasing the maximum bet size, this allows for players to wager more money collectively, without increasing the individual risk.
Additionally, the team should employ smart strategies by only playing the hands that have a higher advantage. A technique known as “back-counting” generally involves a group of players working in tandem to beat the house.
Comparing this to FX trading, one can easily spot similarities. Working in a team will effectively decrease individual risk of losing out, and will benefit the group as a whole, as everyone stands to gain, even if one person does end up losing in a trade.
Furthermore, being smart and rational with trades will help a trader experience a great amount of success. Practicing a certain trading strategy that is almost guaranteed to be profitable should be maintained, while irrational “bets” on trades should be heavily avoided.
Having the necessary skills and financial acumen is not sufficient in being a good currency trader. It is highly advisable to also have the know-how of the blackjack game.
It will provide a player with the essential tools and vast experience, which is then easily transformed onto the currency trading floor.
If anything, looking at Blair Hull as an example might benefit a beginner trader a good deal. Starting out gambling at blackjack tables and later taking the winnings from the game to the stock market and turning it into a fortune worth hundreds of millions is certainly the way to go.