A bit of poker and a bit of trading

On the subject of using poker to improve my trading, I recently decided to take poker to the next level. Let me explain.

I've kept a P&L sheet for my poker sessions. I would track of the date, buy-ins, and cash-outs. While I tracked my profits and losses, I didn't keep my bankroll separate on a cash basis. This is something I decided to do in order to properly track how capitalized I am playing poker.

Why do I think this will help with my trading? While I've drawn a lot of similarities between poker and trading, I think this is one step in the direction of holding myself accountable. As I reflect on my poker gameplay, I would like to extrapolate the mindset and apply it to my trading.

My approach to poker is very similar to that of trading. Took me a while, but I'm proud to say that I'm following my fakeout strategy by waiting for the right conditions.

I recently spotted this EURAUD trade setup. Price broke above a previous high and failed to break higher. As soon as the price is faking out back under the breakout line, I entered a short position. While this trade may or may not work out, I followed my rules of engagement and ensured that the conditions were right.

I never understood trading breakouts and this is why. As price breaks higher, why should I buy when price is already so high? You should be selling when price is high and buy when price is low. The fakeout with price crossing the critical S/R level is a good confirmation signal.

That's it for me. My next post should be about my trading education regiment.