Many Betting Exchange Traders Trade Without A Stop Loss
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On a betting exchange if you risk a selection at 11.0 with a £10 stake, your profit could be £100. But the price then needs to come in to a point for you to lay the same selection at odds which would mean you can’t lose money whatever the outcome. To “green up” a second lay bet is needed. This is calculated by dividing the potential profit by the lay price. This figure is what you lay the selection at.
You will then see that all the selections in the event or market you’re on will turn green. Zero risk. So, whatever happens in the race, you will come out with a profit.
You could also figure out how much you need to stake in order to green up by dividing your return, if the selection were to win, by the lay odds. This is the sum you then need to lay. Simple maths but do you want to be bothered? Why risk getting it wrong?
The challenge is, however, finding the right selection in the first place. More on that next week.
Use A Stop Loss
Many betting exchange traders trade without a stop loss. Really, on BetTrader, there is no excuse for this. It’s easy to set one. A stop loss is to protect you against a trade moving against you. It can be as many ticks below the current price as you like. I suggest that you activate a stop loss automatically on every trade you place. Alternatively, you may set it manually as and when you feel.
The value of a stop loss is that it closes out a position or trade automatically should the price move a number of ticks against you. Beginners on Betfair should use it every time. But traders of all levels of experience find it useful too.
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80% of private investors trade the wrong way and that is why they lose money trading. Worse still, they spend thousands with “teachers” – mostly charlatans who have been sacked, failed in finance or are just internet marketers.
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