Mistakes to Avoid When Trading on Betfair
Here is an interesting fact: All of us make mistakes. Such is the human folly. However, the difference between a successful person and not-so-successful one is that the former knows how to bounce back by creating different strategies when they know the first ones didn’t work, while the latter does not change their stubborn ways.
Many traders on Betfair create so many mistakes and the problem is not their mistakes, per se, but their unwillingness to adapt to the changing of the times.
Below are just some of the common mistakes that are present on Betfair that you should definitely avoid.
1. Not Trading When the Opportunity Presents Itself
Now, before I explain this point, I want to say that all of us have different personalities and we employ different tactics based on our risk threshold, feelings, among other things.
That being said, some of us are patient and some of us are active in trading towards future option trading.
But the problem is that no matter what your trading style is, if an opportunity presents itself, it is best that you take it no matter what.
Here’s why: the market is so random and if you wait and wait for a better trade, that opportunity might not come. It is much easier to take on the trade that is currently available than to wait for something that has no chance of ever getting materialized.
2. Inputting the Wrong Risk Size Parameters
As any professional trader would say, you need to come up with some measures that will help safeguard your assets from possible market downturns.
One way to hedge your capital is to create stops or limits so that even if you did not win the trade, you’re still only going to lose a small portion of your money.
That is much better than not having any stops at all. People tend to lose big bucks if they don’t. So be sure to have a countermeasure to help protect what you currently have.
3. Taking Away Your Stops
So, you’ve taken my initial advice of putting some stops to hedge your assets, but there comes a point where you take it away too early. While market conditions are random, it is best that you do not take the stop away at all.
Imagine this. Say that there is a trade that you could potentially win for $100. You did not put a stop and the race that you thought you could win ended up in a loss instead. So, you not only lose $100, buy you also lost your initial bet as well.
On the other hand, if you’re given the same trade, but this time, you’ve put a $10 risk threshold, even if you lose the trade, you will only be losing your initial investment and the extra $10. That is way better than not having any stops at all.
4. Being Late to the Trade
I know that patience is a virtue, but the thing that you have to remember in this type of market is that you need to be able to adapt to the circumstances. If you waited patiently and the race is about to end, what do you normally do? Do you just let it slide or do you do some things that will probably change the profits that you’re going to lose or make?
5. Making Trades that Are Not in Your Trading Plan
This is probably the pinnacle of stupidity. A good and successful trader should always come up with a plan of action. No one gets rich on Betfair without using a good set of tactics. Making trades that are not in your trading plan is just totally absurd. Why risk it, right?