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Money Management has never been a strong point of mine. It’s not because I don’t understand it or because I’m not disciplined enough to stick to a plan, but because I’ve never really had the need for it – I seem to be doing just fine without it.
My approach to trading is not that of a day trader/scalper/cold trader whatever you want to call it. All trades on Formula One are entered through knowledge of the sport and because I think the price is wrong. I have a set amount of money I’m happy to loose over the course of a race weekend (never happy to loose but you get what I mean). From that I base stakes on each individual trade based on instinct and nothing more. The more confident I am the price is wrong, the more I lump on it and vice versa. Sometimes I will get close to my limit and other times I will be nowhere near it. It’s probably an amateurish method but it works for me. There’s so much variation in my methods I have probably have an argument for not using a staking system or management strategy.
The more I look into trading football the more I’m beginning to think money management will be critical for a return in these markets. Luck is far more influential in football trading so managing the pot of money you trade with could make the difference between profit or loss – it’s possibly more important than the strategy itself. This should be a warning light to me and I really ought to be thinking about why I’m going to bother trading football at all. Not wanting to give up that easily I will continue researching, but with about 1 month to go before kick-off and still no idea of what my ‘plan’ is things aren’t looking great.
In all honesty it’s not looking like I will be able to trade football but I feel I should at least test some methods before I give in. I have a few ideas so I’m off to look for articles on money management to find the best way to put those into practice and avoid loosing my pot before the end of August. Who knows, I may even find a money method which will improve my F1 trading, which had I of used before, would have made me a millionaire by now!
My approach to trading is not that of a day trader/scalper/cold trader whatever you want to call it. All trades on Formula One are entered through knowledge of the sport and because I think the price is wrong. I have a set amount of money I’m happy to loose over the course of a race weekend (never happy to loose but you get what I mean). From that I base stakes on each individual trade based on instinct and nothing more. The more confident I am the price is wrong, the more I lump on it and vice versa. Sometimes I will get close to my limit and other times I will be nowhere near it. It’s probably an amateurish method but it works for me. There’s so much variation in my methods I have probably have an argument for not using a staking system or management strategy.
The more I look into trading football the more I’m beginning to think money management will be critical for a return in these markets. Luck is far more influential in football trading so managing the pot of money you trade with could make the difference between profit or loss – it’s possibly more important than the strategy itself. This should be a warning light to me and I really ought to be thinking about why I’m going to bother trading football at all. Not wanting to give up that easily I will continue researching, but with about 1 month to go before kick-off and still no idea of what my ‘plan’ is things aren’t looking great.
In all honesty it’s not looking like I will be able to trade football but I feel I should at least test some methods before I give in. I have a few ideas so I’m off to look for articles on money management to find the best way to put those into practice and avoid loosing my pot before the end of August. Who knows, I may even find a money method which will improve my F1 trading, which had I of used before, would have made me a millionaire by now!
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