A couple of guys asked me to write about my life lol. Not sure that is a good idea. It doesn’t matter what my life is like. The question is what would yours be like if you could earn the money you needed in a few hours a day? Nor does it matter how much I make. What can you make?
But every since I was a kid I understood compound interest. And simply by taking 5% per match anyone can build a workable bank and achieve a great lifestyle. I often set my trades up to net 10%. That allows a good margin for error for trade outs and unexpected events. My key skills really are keeping my losses down to almost zero and the patience and discipline to be satisfied with small regular stress free returns. Being able to plan and implement exit routes from bad trades is absolutely mission critical. Once I stopped losing money i started earning money !
But the only way to find out what it is like is to have a go. Good luck.
Why no bet is often the best bet
Trading is technically speaking very simple. In fact it is ridiculously easy to make a lot of money. Some people though find it extremely difficult to get the hang of. The reasons are almost always emotional lol. In particular a lack of patience. Some people seem possessed of an unquenchable thirst to be in the market doing something all the time. The thing is we need to match the type of trades we want to do with the circumstances in which to do them. If we want to be swing traders who back strong favorites when they get behind then that is what we do. We just wait for those. And they keep coming. But it is no good getting in from work, logging in, getting restless and just diving into the first thing you see because you are restless. The suicidal urge just to get into the market because of boredom or impatience is a lethal personal characteristic. If you suffer from this you need to get it under control or quit trading.
Thats it. Patience. A Zen like calm. It’s like fishing. Just wait. Then wait some more.You can train yourself into this type of patience. Each time you do it you become stronger. And once you feel the joy and benefit of receiving far higher odds than everybody else you find waiting becomes second nature. Then you are a Trading Master!
Learning how to get out of poor positions is even more important than learning how to make money. Master the former and the money follows automagically
Lets not get into traders versus gamblers. We all want to make money in the sport. But many of our difficulties in learning how to trade have their roots in our gambling psycholgy. Not only that but everything we learnt about odds, value and markets is reversed in play. Thus faced with a poor situation many new comers freeze or panic. This post is meant to help you get over that.
Training, practise and maths is the key. For every trade we need to know the exit possibilities if it goes pear shaped. These need study or figuring out on a pad in relaxed moments. In play the stress can make it impossible to think clearly.
Example. Lets say you plunged on a cert lol like Safin early doors at 1.5. Some time later it occurred to you that far from winning 50 you were quite likely to lose 100. You now need to reverse course. The main skill is to understand that if you go red it does not mean that you are going to pay at the end of the match. There is still time on our side. Once you recognise that it is far easier to adapt the mindset to change tack. So our Safin bet. What to do when he is behind? Easy. Lay 75 at 2.0. But do it early. You now have 25 red on both sides.
Instead of staring at 100 loss you are looking at 25 loss. Furthermore if 100 was your full bank you still have 75 to play with. Back the winner with 75 at anything over 1.33 and you are home free. Its simple. It just about moving money from below to above the line.
Remember as long as your green is on the winner when the match ends – you win! Where the red or green was a minute earlier or 4 sets earlier makes no difference. We get settled at the end of the match. Not in play. Thank God. LOL.
Lol. Victoria Azarenka was our first trade of the day and delivered massively. A strong favorite at about 1.05 in the tissue she was broken in the first set and moved out to omg 1.58 and upwards. She peaked briefly at 1.8. We traders filled up and waited for the break back. She is trading as I write at 1.08. Now. Just imagine. You are a punter. And you backed aza at 1.05. We are sitting on 40 percent profits. How much have you got?
Our second trade was Murray. Hopeless. Drifted all morning from 1.1 to any price. Massive profits for layers all round. Over 300% easily.
Adam Heathcote has a great reputation. He is a young dude from the UK and has (according to his blog) achieved the enviable feat of turning 6k into 150k in just a few short months by using the Betfair beiing exchange. Wow. What we all want to know is: How does he do it. I did comment on his blog but he didn’t answer yet. I am going to be following Adam and his blog closely. Very closely.
Here we examine how the magic of compound interest can turn a modest stake into serious mega bucks virtually overnight.
If you invest a hundred unit stake at Betfair (dollars, pounds or euros) what might you achieve? LOL. Just firing up my open office spread sheet I see that if a person achieves a modest 25% return per trade than they reach the magic 1 million mark in 42 trades. Tennis matches return 25% quite regularly and 5 to 10 matches can be traded per day quite easily. In 50 trades they have omg – over 7 million in cash! How cool is that? Must tweak my trading techniques a bit!
Seriously though this does show the importance of having a financial blueprint at the heart of your trading strategy. Why not write yours down and pin it up by your computer? Something like”My strategy gives me 10 percent of bank per trade and I do 5 trades a day”. If you are not achieving it start working on your technique. And work on those numbers till they do work for you. Good luck.