Small Ball Poker and Day Trading Currencies

Daniel Negreanu is one of the few professional poker players that never seizes to amaze me. He is well know for to reading player's hand on national television (ESPN). If you go through the poker forums, Google, or his vblog...you'll be sure to find that small ball poker strategy is the strategy that successful pros use for tournament poker.

Daniel's tutorial that has shaped my poker play tremendously and I use the same fundamentals on arbitrage.

Small ball in a nutshell:

1. Keep pots small
2. Try to get into as many hands as possible without paying much
3. Play small suited connectors...to see the flop. If you miss...easy lay down...If you hit HUGE pay out.
   
4. Bet out in consistent amounts to hide strength of hands

Uses in day trading (in mini-lots):

1. Risk 3-8% of account portfolio (In my case trade 1 mini-lots until comfortable with Forex)
   
2. Stop loss set at 20 pips I 'cap' my pot commitment to $20 per trade...trading a lot has actually burned me (my broker probably loves me).
   
3. If the trends run the correctly I rake in a 20-200 pip gain. The idea is to risk very little to rake the reward (kinda like drawing on straights and flushes). Reset stops once you're on a run to cap profits...example: set stop at 10 pips once it breaks +20 pips...set 20 pips otb +30 pips...etc. Basically protect your hand.
   
4. Don't get cocky and put the entire fund at stake on a 'hunch'. Play this game by the books and grind it out.