Poker is a game of cards that involves betting between players. A player with the best five-card hand wins the pot (the amount of money bet in a round). To win, a player must either call or raise other players’ bets.

A good poker player is able to quickly assess the odds of their hand, and knows when to fold or raise. They are also able to make quick math calculations, which develops their quantitative skills. In fact, researchers have found that the more someone plays poker, the better they become at calculating probabilities (Newall 2018; Brown and Sandholm 2019).

Moreover, a good poker player knows how to handle failure. They see it as a valuable learning opportunity, rather than something to be embarrassed about. This helps them stay motivated to continue improving their skills. It’s an important lesson that can be applied to other aspects of life, including work and relationships.

Like in poker, many life decisions are made without all the facts at hand. This makes risk-taking a necessary part of both life and business. In poker, playing it safe results in missing out on opportunities that may yield a large reward. However, in real life, over-estimating your chances can be equally dangerous. Fortunately, both poker and business provide an opportunity to practice our ability to evaluate risks and rewards. This is a crucial skill for entrepreneurs, investors and leaders in any field. In the world of finance, for example, some of the smartest minds on Wall Street credit poker as having helped them learn how to weigh risks and profits.