All poker players go through a natural process the more they play, evolving with each game. It takes a long while for players to learn the game’s rules and develop enough confidence in their skills before they start winning.
But once you reach a certain level of success, you might find yourself looking for new ways to challenge yourself. At some point, playing the same games and making the most of poker promotions will no longer provide you with the same rush you used to experience at the beginning of your journey.
That is the exact moment when you need to think of the next step you could take! As it turns out, quite a few online poker players use their acquired gaming skills to become better at managing hedge funds.
The most recent example is the story of Vanessa Selbst, who used to be a successful pro poker player until she decided to retire and join a hedge fund.
As it turns out, investing and playing poker has a lot of things in common, and you can learn about managing money from playing the game.
But you don’t have to take our word for it! According to a study conducted by researchers from the University of Alabama, hedge fund managers who win in poker tournaments get better results at work. The bigger the tournament is, the better their funds perform.
Larger buy-ins, more participants and media coverage make for stronger investors, which turned experts to believe that there is a solid connection between poker skills and the ability to manage funds.
Now the only thing left to do is understand the connection between the two!
3 Similarities between Poker and Hedge Fund Management
Dealing with unknown factors – When you play poker online or in a live setting, you have to build your strategy without knowing what kind of hand your opponents have. The same rule applies for investments, as your goal is to make calculated decisions without knowing all the facts. There is a certain element of risk in both activities, which in turn requires a lot of confidence and fearlessness.
Dealing with losses – Both poker players and investors need to face the reality that not every decision they make will lead to a win. Not everyone can deal with the uncertainty that comes with both professions, as it requires you to stay positive when facing perceived failure. Remember, things won’t always go your way, but if you approach every situation with the right attitude, you will manage to succeed.
Adjusting to the situation – To win at poker, players have to learn all about their opponents and use reverse psychology to outsmart them. The same thing goes for hedge fund managers, with a slight change: instead of understanding people, they have to understand situations. They have to figure out how any given situation is going to evolve and act accordingly.
Poker players acquire various skills that can prove to be useful even outside the casino. If you are good at poker and you are looking for a new career, maybe managing hedge funds suits you most!