The Betfair Tennis Trader

Cleaning up without getting out of my boxer shorts.

Zen and the Art of Flying!

Learning to fly on a flight sim improved my trading techniques and increased my profits massively. Could it it help you?

Some time ago I installed a flight sim. Never done it before. I use a very good open source sim called Flight Gear . It’s not a kids shoot em up combat kinda thing. It’s a serious tool for learning to fly. I read everything. Did my checks. And rolled confidently down the runway for takeoff. Seconds later I crashed badly. I careered wildly off the runway at full power into the boondocks! Tried again. Same thing. Read the manual. Tried again. Same thing. A few minutes later I improved. By now I was getting off the runway first and climbing maybe a hundred feet. Then the aircraft turned turtle and I crashed again. I had traded up to more spectacular crashes. It seemed to me that I  was faced with a few choices. I could quit. I could go on crashing and burning. Or I could set about acquiring the skills to do the darn thing properly. I decided to stick with it and learn. Now my takeoffs and climb out are by now as smooth as silk. Every time.

tomcat

Now this may seem wierd. But I think there are some important lessons in that experience which are directly applicable to learning to trade. In real life we can not afford to crash. Not even once. And in real life we can not afford to lose our trading bank. The real cost of losing our trading bank is not the money. If we have been sensible we can simply lodge further funds and go again. And if need be we can go a third, fourth or fifth time. But two things are likely to happen. Either we are going to get so frustrated, hurt, stressed and embarrassed at being whacked by the market that we are going to give up. Or we are going to run out of funds. And lets face it. Many traders like many gamblers are undercapitalised. So the real cost of starting trading in a half assed way and losing money is that it will probably drive us away from an activity which could otherwise have changed our lives. That is the real loss.

In my case though I mastered the take off even though a short time earlier it had seemed impossible. It can be done. How to do it is the question. But whether we are flying an underpowered aircraft or trading a small bank in both cases we need the same thing. A very smooth takeoff and a steady climb to altitude! The seminars, videos and other training materials I am going publish here can help you achieve just that. Without losing your bank. Or crashing. Just like my take offs, a few subtle adjustments to your trading techniques can stem losses and generate consistent and growing profits.

Successful trading on tennis matches at Betfair does not require much start up capital. Seed corn really. The percentage gains on each trade are so large that even a very small pot can climb quite quickly. What is required is a serious investment and commitment to acquiring the trading skills necessary to become a trading master. Thus the first challenge is not to make money at all. The first challenge is learning how to trade without costing yourself too much money. Ideally without losing any money at all. Just as important is avoiding the emotional damage that unsuccessful, failed and burnt trades will bring. Those bad trades cause incalculable harm to your ego, your confidence and your self esteem which is far worse than the money lost. And like flying, trading is all about technique. It has nothing to do with judgement, luck, skill, prayer or any other shibboleths. Technique. That’s it. Master the techniques and the money will follow by the shed load.

The good news is that those techniques can be taught or learnt without losing or paying a lot of money in the process. You are going to be simply astonished at how much money you will be making in tennis trading. But it seems to me that the critical part to learning anything is first to work out what you need to learn and how to learn it. To learn to take off I set my sim to start me at some altitude and learnt how to control the aircraft in safety. Then I got on to more complicated stuff. Like learning to take off lol. So first you need a safe training environment. And here it is. Trade with the barest minimum stakes until you have the techniques really down and mastered. Trading with a small bank and using a very small portion of your bank on every trade beats any amount of paper trading. Until you experience the market you can’t learn. The trick is to recognise that your first encounters with the market might be painful. The solution is small stakes. Tiny ones. And learning the maximum from each trade. If you are paying then at least learn something. It can be a good investment. In this field there is absolutely no benefit to having large amounts of cash to start with. Just the reverse. Start low. Very low. Learn the trade. And be very very cautious.

May 14, 2009 - Posted by | Tennis Trading Strategy.

1 Comment »

  1. Hi,

    Great post. Very relevant to the new trader. I have copy and pasted it onto my blog. I hope you dont mind. I have also posted a link to you.

    good luck and i will continue to pop in from time to time.

    steve.

    Comment by Steve Lewis | May 22, 2009 | Reply


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