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Tuesday, May 17, 2011

Betfair Misconceptions

Trading SpacesImage via WikipediaI have noticed that many people who start out in sports trading often end up making the same mistakes and some also end up giving up for the same reasons too. It seems there are many misconceptions about Betfair trading and this article is going to identify some of them. If you are just starting out or are on your way to becoming a profitable trader then this article should hopefully help you avoid having the wrong idea of what Betfair Trading is all about!



1) That it’s easy!
Many people will take up Betfair trading after being sucked in by sales pages for a product promising to make them a millionaire within a month or by reading a blog by someone who irresponsibly shows screen shots with incredible earnings and hardly any information on how it’s done. This can create the misconception that this game is easy and it really isn’t. Once you have found an edge then it can be easy but when you are just starting out it is very hard! If you are just starting out with sports trading then don’t expect to quit your job anytime soon. Most traders I know took at least a year on the exchanges before they started turning a profit. It took me two years before I saw the light and this was after many hard hours working and testing out strategies.
2) That Fancy Software Will Make You Win!
I get the impression that some traders who are losing money feel that using software like Bet Angel will all of a sudden make them winning traders. Trading software is a tool and not a magic wand. It is certainly a massive help with certain things however there are many trades that I personally like to do which don’t necessarily require any software so its not always necessary. I even saw a comment on the Bet Angel forum where someone said they thought the whole thing was a scam as they were still losing money. Well that isn’t the fault of the software but the person who operates it. A good workman never blames his tools and a good trader doesn’t either!
3) That every event is a money making opportunity!
When you first start trading sports it can be quite addictive. I will admit that when I first started I made this misconception too as I would sit and try and trade almost everything I could! I would get involved on sports that I had no clue about, everything from Ice hockey to Bowls and even Fishing at one point! Even if you trade only football then you should remember that not every match is worth trading, especially if you don’t have a good idea about its potential outcome! Professionals will tell you it is all about selecting good quality opportunities if you want to succeed in the long run, plus staying up till 3am to trade an obscure Argentinean match certainly isn’t my idea of fun!
4) That you need to make X% per day
As soon as many traders start turning a profit then a common misconception is that they need to hit a profit target for each day. For example, some will suggest that they make 1% profit of their bank every day. This sounds like a good plan in theory, however in practise it doesn’t work out that way and you shouldn’t expect it too. What if there aren’t any good trading opportunities? Also, if you are in a losing position for the day are you going to go and trade something you shouldn’t be trading in order to make that 1%? When you trade its important that you trade good value opportunities and not purely for the sake of it. You should really be assessing your trading profits on a monthly basis in the very least.
5) That it should be fun!
Finally, getting paid to watch your favourite sports sounds like a lot of fun however eventually you might find that you don’t look at your favourite sports in the same way. I have taken time out to watch football matches with friends when I am not trading and I find myself constantly trying to work out where the odds would be within the match and finding trading angles which can take away from the casual enjoyment of the match. I know I am not the only trader that suffers from this form of “tradervitis”.  Trading can be fun however it won’t always be fun. Some events can be a drag and having a losing run can be a very stressful experience too. Some of the more secure and profitable trading strategies can actually be some of the most boring!

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