The Easiest Way to Be A Profitable Trader
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If strategy was the true determinant of success than most traders would be wildly rich. But in reality all of trading on betting exchanges can actually be reduced to two strategies — trend or fade. To be profitable you either buy the highs in hopes of momentum moving forward or you sell the highs in hopes of a reversal.
There are a many variations on trade management. They will increase or decrease your odds of success.
90% of all successful trading is not to trade when your strategy is wrong for the Betfair market. There will always be another horse race. As many traders say — being flat is a position.
Pilots can make profitable traders. They are trained to be extremely thorough and follow a checklist.
Process — not performance — is at the root of all long term success in betting exchange trading.
Let’s have a look at a small sample of error trades:
- Not taking a trade when your system provides a signal.
- Rushing to enter and being early to the trade.
- Missing the entry and being late to the trade.
- Putting in the wrong size for you risk control parameters.
- Lifting your pre-set stop.
- Putting in the wrong take profit.
- And the ever popular — taking a trade that is totally outside of your setup.
How many of us are guilty of making error trades?
I would say 100%.
Note that the error trades have NOTHING to do with the actual set up. They are in fact all trades taken outside of the setup and may not become profitable.
You can’t go into first gear until you move through neutral. In other words, the easiest way to improve your profitability is not by constantly tweaking the parameters of your strategy, but by actually trying to eliminate the screw ups you are making.
Once you are settled then all you do is stick to the rules you developed for yourself relentlessly tracking any “errors” you make.
Then use a virtual account – most software today has the ability to not trade with real money, including BetTrader – where you can make all the errors you want as you experiment with new ideas. You’ll be amazed at what a difference it will make.
The next step could be to watch a successful trader live tomorrow trading Betfair in the RacingTraders webinar at 2pm UK time. See you there.