Issue Date: November 8, 2009

Three invaluable life lessons you can learn from playing poker

By Dennis McCafferty

All you really need to know, you can learn from poker. Well, perhaps not everything. But this card game can strengthen skills that are needed in work and life. Just ask Norman Chad, who will co-host the finals of the 40th annual World Series of Poker on Tuesday (ESPN, 9 p.m. ET).

"Some people say poker is nothing more than gambling," says Chad, a syndicated sports humor columnist who appears in the "Chicago Sun-Times," the "Milwaukee Journal Sentinel" and other top U.S. newspapers. "But it requires players to examine risk vs. reward factors, not to mention command an understanding of people and how they tick."

Chad says these three key poker strategies can help you succeed in everyday life, too:

Look for subtle clues. "It's all about 'the tell' in poker," Chad says, so observe the body language of the people around you. "You can use non-verbal clues to determine if someone's hand is strong or weak. You're always studying tendencies of your opponents. It could be the pulse on their neck. Or it could be how they place their chips." He recalls how one player stacked chips neatly when he had a good hand and casually flung them into the pot when his hand was weak, practically giving himself away.

This talent translates seamlessly into real-world needs, both in business or in your personal life. "You'd better know if your boss is aggravated before you ask him for a raise, and non-verbal clues are key to that," Chad says. "In sales, you'll increase production if you can read people and know when to back down or when to be aggressive. Then, after the workday is done, knowing how to read the opposite sex never hurts in a singles bar."

Be objective. Poker players need to put aside emotions and accurately assess the strength of their assets to decide whether it's worth additional investment to stay in the game. A dead-on assessment can mean the difference between a big payoff or a financial plunge. "You need to ask, 'Is the possible return on investment going to be worth the risk?' " Chad says. "It's not much of a stretch between that and trying to evaluate whether you should invest in a kitchen upgrade for your home. How much will it cost, and how much potential value will it add?"

Remember the past. An investment firm will tell you that past performance doesn't guarantee future results. However, past performance often can reveal insights. Poker players study opponents' strategies and store that data. "You'll fill your memory bank with what players will do in a given situation," Chad says. "Do they play it safe and fold early, even if they have an OK hand? Or do they push it and bet higher, even when they don't have much? As in the business world, you have to do your homework. The most dangerous competitor, after all, is the one who's capable of doing something you never saw coming."