Yes, of course, I'm talking about your trading experiences. When we first discover the concept of people making money by backing and laying, we're all feverish with excitement, and are like children with new toys that we want to play without end. We see this veritable sea of money swishing and swirling around in the markets and we hold our hands out in yearning, as we want some of it. And it all looks so easy. We think we've found a straight, open path paved with riches, and it will just be a case of strolling along it and gently gathering up all the pots of gold that line its length. Yes indeed, this is Shangrila and, thankfully, we've discovered it.
Unfortunately, jumping feet first into our very first trading experience will, more often than not, result in complete disaster. Those that do jump in feet first but don't crash and burn immediately are only delaying the inevitable, for they will also happen upon a punishing wipeout on subsequent attempts using the initial, unthinking Kamikaze method.
"Okay", you say to yourself after hitting a wall two or three times, "I'll take it a bit more steady. Maybe I'm going in too hard and too fast".
Well, yes. Quite. And perhaps this is the first real step on the road to some kind of realisation or recognition of what it takes, or even what it maybe takes, to actually make some money doing this crazy, solitary, isolationist hobby of ours.
But even then, this is a lesson that many need to keep learning over and over and over again. And for many, it's a lesson they will never learn. Sadly, for many the message will never seep in, and they will keep experiencing the same thing endlessly until they either give-up entirely or go through their lives haemorraging money at, what to them, is deemed an acceptable level of loss.
Some people, however, (the fortunate ones) will eventually allow this harsh lesson to finally permeate through into their stone-like consciousness, and trigger a change in their behaviour patterns. These people are then on the real road - the road where they can, perhaps, start making some money. But even then, it's a hard journey that no one will thank them for going on.
Right, well, I've probably depressed the hell out of you all by now, but I was struck by something today that caught my eye. And, for me, it is VITALLY important when it comes to betting or trading. I popped along to the http://tradingtennis.blogspot.com/ this morning, just browsing blogland to kill some time, and I came across this short sentence:
the patiant (sic) traders who know when to get involved and how to control them selves after a big win also and just get back to their jobs/routines are on the right track in trading. it's great to work with intelligent people here.
Really, it was this part: "... traders who know when to get involved" that caught my attention as this is one of the most important lessons that any trader must learn - and be willing to learn.
As you will have seen from my short posts on the subject here, I know very little about tennis; but I would now consider myself a half-decent trader of football - yet I believe the same maxims apply across all sports when trading, and the one highlighted here is absolutely imperative. I'll say it again:
patient traders who know when to get involved
Take football (this is, afterall, a blog on that subject). If you trade football, are you one of those people who jump right in? Do you sit down at your computer, set everything up and then just start clicking away immediately? If so, then you are probably a loser with a negative P&L.
A football match lasts some 93 minutes or so, with a fifteen minute break in the middle. This is one hour and forty-five minutes of potential trading (assuming for a moment that you are not pre-match trading). There is an average of 2.5 to 3 goals in a match, with each goal taking perhaps 10 to 30 seconds to score from first build-up to the goal hitting the back of the net. That is no more than 90 seconds of importance in 93 minutes of action. Do you assess a match like that? Do you look for the important times to get involved in a game? Do you look at when and where you can be most effective for the least amount of risk? Do you even bother to ask yourselves these types of questions?
So the message must be "Don't jump right in. The water's not lovely". Look at the sentence from the Trading Tennis blog once again. I make no apology for repeating it as it one of the foundations to being successful:
patient traders who know when to get involved
In all honesty, are you one of these people? Do you know when to get involved and when not to? Do you pick and choose your moments? If the answer is "no" or "I'm not sure", then I'd say you are not yet in a position to start making money trading.
I had a very good day today and was able to trade more than I had initially envisaged (as I didn't do as much DIY as I was supposed to!). I took a steady, disciplined approach and got involved at appropriate times in the matches I traded. I believe that I'm doing this more and more now, and am starting to reap the benefits. And it's also nice to know why this is happening!
I say again: getting involved at the right times is the key. Don't be impatient. Let the opportunities come to you rather than you trying to manufacture them. Keep your powder dry and choose the times you trade - and do so carefully. Look at this aspect of your trading and improve your performance because of it.
Football: £194.49 | Tote: | Total P&L: £194.49
Football Showing 1 - 20 of 21 markets
Market Start time Settled date Profit/loss (£)
Football / Juventus v Udinese : Correct Score 28-Jan-12 19:45 28-Jan-12 21:40 20.31
Football / Juventus v Udinese : Match Odds 28-Jan-12 19:45 28-Jan-12 21:37 4.28
Football / Juventus v Udinese : Over/Under 2.5 goals 28-Jan-12 19:45 28-Jan-12 21:06 3.72
Football / Brighton v Newcastle : Correct Score 28-Jan-12 17:15 28-Jan-12 19:16 16.80
Football / Brighton v Newcastle : Over/Under 1.5 Goals 28-Jan-12 17:15 28-Jan-12 19:14 10.43
Football / Brighton v Newcastle : Over/Under 2.5 goals 28-Jan-12 17:15 28-Jan-12 19:14 11.31
Football / West Brom v Norwich : Match Odds 28-Jan-12 15:00 28-Jan-12 16:59 0.35
Football / Hull v Crawley Town : Match Odds 28-Jan-12 15:00 28-Jan-12 16:54 0.91
Football / Bolton v Swansea : Match Odds 28-Jan-12 15:00 28-Jan-12 16:52 0.52
Football / Blackpool v Sheff Wed : Match Odds 28-Jan-12 15:00 28-Jan-12 16:52 0.00
Football / Millwall v Southampton : Match Odds 28-Jan-12 15:00 28-Jan-12 16:51 1.32
Football / H Berlin v Hamburg : Correct Score 28-Jan-12 14:30 28-Jan-12 16:24 16.93
Football / H Berlin v Hamburg : Match Odds 28-Jan-12 14:30 28-Jan-12 16:24 1.50
Football / W Bremen v Leverkusen : Match Odds 28-Jan-12 14:30 28-Jan-12 16:22 2.25
Football / B Munich v Wolfsburg : Correct Score 28-Jan-12 14:30 28-Jan-12 16:22 0.35
Football / Augsburg v Kaiserslautern : Match Odds 28-Jan-12 14:30 28-Jan-12 16:21 2.64
Football / Liverpool v Man Utd : Over/Under 3.5 Goals 28-Jan-12 12:45 28-Jan-12 14:40 1.41
Football / Liverpool v Man Utd : Correct Score 28-Jan-12 12:45 28-Jan-12 14:37 27.90
Football / Liverpool v Man Utd : Over/Under 2.5 goals 28-Jan-12 12:45 28-Jan-12 14:32 18.22
Football / QPR v Chelsea : Correct Score 28-Jan-12 12:00 28-Jan-12 14:04 50.46
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