subject: Ten tips for improving your sports trading activity [print this page] Ten tips for improving your sports trading activity
1.Trading bank - An amount suitable for the type of trading you intend to participate in. The trading bank should be large enough to absorb the inevitable losing runs you will encounter and should be money you can afford to lose. Please note trading banks differ from betting banks because whilst you may use your entire bank during a trade the amount risked is not the stake being used, but the profit/loss exposure for that trade. For instance when trading tennis it is not unusual for a sports trader to use their entire trading bank to initiate a trade, however the risk associated to the trade is where you have decided to place your stoploss, which is measured either in ticks or monetary value. Therefore if a sports trader has decided that for every trade initiated the maximum exposure/risk they are willing to take is 5, then the trading bank being used should be large enough to cope with a number of failed trades.
2.Planning - Like all business ventures the key to success is planning. Every successful sports trader before entering a trade must have a plan in place; this plan will identify where the entry and exit points are prior to placing any trade. Simply put every sports trader should know what trades to make and how to trade them in order to maximize profits and minimize losses. Planning properly prior to any trades has two very distinct advantages, firstly the sports trader knows exactly what to do in a particular trade and secondly if you know what your liability is before you enter a trade then your heart should not take a beating. However if you are worried then you have set your liability to high.
3.Accepting Losses - You will probably have heard the old adage cut your losses and let your winners run. However more important is the ability to accept a loss and move on without emotional hesitation when the next trading opportunity presents itself. The key to getting this right is understanding that you will always have losses to contend with, but how you deal with the losses will be the difference between success and failure. Remember no one, not even the best sports traders have a 100% success rate.
4.Never settle for less - If you have set out your trading plan and the market does not fit or the opportunity is not right, move on there is always another opportunity. Never, never, never force an opportunity, if one is not available according to your criteria then walk away. Getting involved when the market is not right is the fastest way to lose your trading bank.
5.Patience - We have all heard that patience is a virtue and the rule in sports trading is simple sometimes you have to wait a long time.
6.Effort - Like all businesses and jobs the people that succeed are the ones who put the time and effort in to learn the craft and sports' trading is no different. Learning a new craft will take time and a lot of practice, but the rewards for individuals prepared to put the time in, are great. Effort in sports trading can be summed up as the ability and willingness to work hard to gain an edge on the competition in the case of sports traders this is the betting public and takes various forms.
7.Play to win, not lose - Sounds obvious doesn't it, well how many times have you left a trade open in the market when you should have accepted the lost and hedged out. How many times have you entered a trade because you were bored? Or how many times have you traded when you shouldn't have, like when you are drunk or in a rush. There is a big difference between a sports trader who plays to win and one who is simply playing. A sports trader who trades to win will stick to a plan and ignore trading opportunities where there are too many variables for a confident trade or doesn't fit the criteria. They will also avoid throw-away gambles and will protect their trading bank at all times.
8.Confidence - Is having the belief in your own decision making process and avoiding the influence of so-called experts and 'smart money'. The key to confidence is once again planning and knowing what you will do when you enter a trade and more importantly what you will do when it goes against you. This can only really be achieved through good preparation and practice.
9.Emotional control - makes up probably the most important part of trading and learning to control your emotions is the key to success. You must learn to disconnect your emotions from losing sequences as well as winning sequences. The art of sports trading is to remain emotionally detached and implement a strategy. Remember as a sports trader you cannot know what the price movements will be in the future, but you can play the probabilities of future outcomes.
10.Belief - If you believe you can win and we mean truly believe you can win you'll then have the confidence to make the decisions, which in turn will make you a successful sports trader.
Good luck with your sports trading and here is a little quote from the great J.P. McManus:
"Racing is a great leveller. The day you think you have mastered the game, you will be made to pay for it the following day. What you must do is build up a bank of experience that allows you to reduce and eliminate as far as possible the factors that make for foolish betting. In a word, you act to strict ground rules always and you endeavour to become an investor rather than a pure addictive gambler..."
