Volatility Stops On Betfair? Equity Stops On Matchbook?

2004 was the year when I realised that you can't trade more than two or three sports

1. Less volatility, less stops.

Less trades, less mistakes, less stops. 2004 was the year when I realised that you can’t trade more than two or three sports and expect to keep your focus.

This still applies in 2018. It doesn’t matter how much money the trade would have made. Volatility matters. Getting out early by hedging was, for me, always a much better choice. It saved my automated strategies from countless disasters throughout the year. When in doubt – get the fuck out and reassess after.

2. The only stop that matters.

Volatility stops? Equity stops? Who are we kidding? In the heat of the battle you are always going to modify your trades or just dive in unprotected as you either chase the move or fight the market. There is only one stop that works because its absolute. The money stop. You need to find a number that you are willing to lose on every trade and size accordingly. For simplicity’s sake make it £10.

So anytime you do a trade make sure that whatever stop you have on is 10 quid or less. That is literally the only thing you should care about for the rest of the year and into 2019. Because here is something I will promise you – almost guarantee you . If every trade has a £10 stop you will not lose £500 next year. On the other hand, no money stop and you are almost certain to do so on whatever fight-the-market-because-this-move-is-bullshit trade that comes along.

We are not trading ticks, currencies, stocks, pips, dips, rallies or anything else. We are trading money. So make it a money stop. Always.

3. The most powerful trading tool is your pen.

Pilots do it.
Surgeons do it.
Wedding planners do it.
Every professional no matter how skilled, how experienced, how good they are at their job does this one thing.
The checklist.
It doesn’t matter if you’ve done the thing a thousand times, if you don’t use a checklist you will lose money unnecessarily this year.

4. Trust your set up

Once all the stat work is done. Once all the trading tweaks have been adjusted. Once you have seen the strategy do its thing in real market conditions, you need to trust it. Let the trade come to you and take it.

5. Collaborate

The Lone Ranger is long dead. The future of capitalism is collaboration. No matter how good you are, your teammates will always make you better. The future of trading is team. So trade with like minded people who will help you get better every single day. So why not join TradeChat? The biggest community of daily Betfair traders and gamblers. TradeChat will always be free.

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