Mind Over Poker - Negotiating Chips

Longtime readers know that I frequently make analogies between the business world and poker. More specifically, I find a lot of similarities between negotiating and poker. Many of the skills — such as reading your opponent, exercising leverage, using position, and exploiting weakness — are applicable to both. There are fundamental differences between the two, as well. Most obviously, poker is a zero-sum game. If you are playing heads up, your wins will equal your opponent’s losses. In negotiating a deal, both parties can benefit. In fact, it is extremely difficult to consummate a transaction if both parties can’t see some benefit in doing so.

It is in that light that I came across the following quote from John F. Kennedy: “We cannot negotiate with those who say what’s mine is mine and what’s yours is negotiable.” Kennedy is articulating that if one person is viewing negotiations as a zero-sum game, it is virtually impossible to even have a discussion. I don’t think anyone would want to negotiate with that type of person. Furthermore, if you want to negotiate, you can’t have the attitude of that type of person.

However, if you want to play poker, I think the mindset of Kennedy’s hypothetical adversary is perfect. You don’t want to negotiate your chips. You want to negotiate your opponent’s chips. What do I mean by that?

First and foremost, your chips belong to you, and should never be part of someone else’s negotiating strategy. Don’t commit them without a specific purpose that benefits you. If you don’t know where you stand or how you are going to win the hand, you shouldn’t be putting chips in the pot. That sounds simple, but it is a fundamental maxim that is consistently violated. Value-betting, floating, bluffing, and calling with sufficient pot odds are all examples of using your chips for your benefit. Calling out of curiosity or cynicism, bluffing into a multiway pot, and chasing draws without adequate odds are all examples of allowing your opponent to negotiate with your chips.

Play your hands, not your opponent’s. Poker is a game of imperfect information, so you can never play perfectly all the time. To maximize your winnings, adopt the strategy that if you don’t perceive an edge, get out. That edge can take the form of many things — your cards, position, perceived weakness in your opponent — but if it is not clearly apparent to you, you are playing your opponent’s hand, not your own. You are negotiating with your chips, not his. On the other hand, if you can consistently see why you are committing your chips, your opponent most likely will be the one putting his chips in play without a compelling reason. If you can make the majority of pots that you enter a matter of negotiating your opponent’s chips, you will be a winner. ♠

David Apostolico is the author of numerous poker-strategy books. His book Poker Strategies for a Winning Edge in Business applies the principles of poker to various business scenarios. You can contact him at [email protected].