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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!
For the last two games of the Euro’s I simply backed Spain and left them as outright bets. Not really a ‘strategy’ but there was value in the odds and at no point did I feel the need to trade out, so they were left to run.
The funds therefore in profit but for no reason other than luck. I have been trying to think of a way to reduce the ‘luck’ factor and find some edge but it’s not easy - my main issue and the reason I believe it’s so hard to make regular profit (note the regular part) from football, is because most ‘strategies’ rely on you cutting your winnings.
Take the well known Lay The Draw method, which involves laying the draw and then backing when/if either team scores. What are you really doing here? As soon as the advantage moves in your favour (the game is not a draw) a green-up bet is placed – in other words you are cutting your wins short. If there’s no goal what do you do? How do you know when to exit? Most of the time you would be leaving your losses to run for a far greater extent compared to the winnings you are cutting short – the exact opposite of what you should be doing. Yes you could take out insurance on 0-0 but then your reducing your profits on the winning bets again, to the point you don’t actually make a profit.
A far better ‘strategy’ would be to do some research. Find a game you believe will not end 0-0, or even better would not end a draw. Compare the odds with the real probable outcome and determine if there is some value in the odds form a lay perspective. Then Lay the draw and let the bet run. Of course that’s not a strategy – it’s a gamble on a pure outright bet. If you got your research correct you should make a profit, unless you were really unlucky, but it’s not the way to make a regular income. This is the hard part about finding a football ‘strategy’. Trading results in you cutting losses and gambling is …a gamble.
I’ve still not decide on how I will ‘play’ the football markets although I already know it won’t be through some ‘strategy’. Each game is different so why would I want to apply the same method to each one. At the same time I don’t want to rely on luck, so I have to find the middle ground somewhere. If you thought I had some plan or strategy when I start this blog your wrong - It’s a good job I have some time before the start of the season because at the moment I really have no idea of what I’m going to do!
The funds therefore in profit but for no reason other than luck. I have been trying to think of a way to reduce the ‘luck’ factor and find some edge but it’s not easy - my main issue and the reason I believe it’s so hard to make regular profit (note the regular part) from football, is because most ‘strategies’ rely on you cutting your winnings.
Take the well known Lay The Draw method, which involves laying the draw and then backing when/if either team scores. What are you really doing here? As soon as the advantage moves in your favour (the game is not a draw) a green-up bet is placed – in other words you are cutting your wins short. If there’s no goal what do you do? How do you know when to exit? Most of the time you would be leaving your losses to run for a far greater extent compared to the winnings you are cutting short – the exact opposite of what you should be doing. Yes you could take out insurance on 0-0 but then your reducing your profits on the winning bets again, to the point you don’t actually make a profit.
A far better ‘strategy’ would be to do some research. Find a game you believe will not end 0-0, or even better would not end a draw. Compare the odds with the real probable outcome and determine if there is some value in the odds form a lay perspective. Then Lay the draw and let the bet run. Of course that’s not a strategy – it’s a gamble on a pure outright bet. If you got your research correct you should make a profit, unless you were really unlucky, but it’s not the way to make a regular income. This is the hard part about finding a football ‘strategy’. Trading results in you cutting losses and gambling is …a gamble.
I’ve still not decide on how I will ‘play’ the football markets although I already know it won’t be through some ‘strategy’. Each game is different so why would I want to apply the same method to each one. At the same time I don’t want to rely on luck, so I have to find the middle ground somewhere. If you thought I had some plan or strategy when I start this blog your wrong - It’s a good job I have some time before the start of the season because at the moment I really have no idea of what I’m going to do!