Trading bank - An amount ideal for the type of trading you intend to participate in. The trading bank should be huge enough to absorb the inevitable losing flows you will encounter and should be money you can afford to drop. Please note trading banks are different from betting banks because whilst you may utilization your entire bank throughout a trade the amount risked is not the stake being used, but the profit/loss exposure for that trade. For instance when trading tennis it is not unusual for a sports trader to use their entire trading bank to initiate a trade, however the risk related to the trade is where you have made the decision to place your stoploss, which is calculated either in ticks or monetary value. Therefore if a sports trader has determined that for every trade initiated the maximum exposure/risk they are willing to take is 5GBP, then the dealing bank being used should be large sufficient to cope with a number of failed trades.
2. Planning - Like all business projects the key to achievements is planning. Every effective sports trader before entering a trade must have a plan in place; this plan will recognize where the access and exit points are prior to placing any trade. Basically put every sports trader should know what trades to make and how to trade them in order to maximize profits and minimize losses. Planning effectively prior to any trades has two very unique advantages, firstly the sports trader knows exactly what to do in a particular trade and secondly if you know what your responsibility is before you enter a trade then your heart should not take a beating. However if you are worried then you have set your liability to high.
3. Accepting Losses - You will most likely have heard the old proverb cut your losses and let your victors run. However more essential is the ability to take a loss and move on without emotional doubt when the next trading possibility presents itself. The key to getting this right is understanding that you will always have losses to contend with, but how you deal with the losses will be the difference between success and failing. Remember no one, not even the best sports traders have a 100% success rate.
4. Never settle for less - If you have set out your trading strategy and the market does not fit or the chance is not right, move on there is always another opportunity. Never, never, never force an opportunity, if one is not offered according to your criteria then walk away. Getting involved when the market is not right is the quickest way to lose your trading bank.
5. Patience - We have all noticed that patience is a virtue and the rule in sports trading is simple sometimes you have to wait a long time.
6. Effort - Like all enterprises and jobs the people that realize success are the ones who put the time and effort in to understand the craft and sports' trading is no different. Learning a new art will take time and a lot of practice, but the incentives for individuals prepared to put the time in, are great. Effort in sports trading can be summed up as the ability and willingness to work hard to gain an borders on the competition in the case of sports traders this is the betting public and takes various forms.
7. Play to win, not lose - Sounds clear doesn't it, well how many times have you left a deal open in the market when you should have approved the lost and hedged out. How many times have you entered a trade because you were bored? Or how many times have you traded when you shouldn't have, like when you are drunk or in a rush. There is a big distinction between a sports trader who plays to win and one who is simply playing. A sports trader who trades to win will keep to a plan and neglect trading possibilities where there are too many variables for a confident trade or doesn't fit the criteria. They will also avoid throw-away gambles and will protect their trading bank at all times.
8. Confidence - Is having the thinking in your own choice making process and avoiding the impact of so-called experts and 'smart money'. The key to confidence is once again preparing and knowing what you will do when you enter a trade and more importantly what you will do when it goes against you. This can only really be achieved via good preparation and practice.
2. Planning - Like all business projects the key to achievements is planning. Every effective sports trader before entering a trade must have a plan in place; this plan will recognize where the access and exit points are prior to placing any trade. Basically put every sports trader should know what trades to make and how to trade them in order to maximize profits and minimize losses. Planning effectively prior to any trades has two very unique advantages, firstly the sports trader knows exactly what to do in a particular trade and secondly if you know what your responsibility is before you enter a trade then your heart should not take a beating. However if you are worried then you have set your liability to high.
3. Accepting Losses - You will most likely have heard the old proverb cut your losses and let your victors run. However more essential is the ability to take a loss and move on without emotional doubt when the next trading possibility presents itself. The key to getting this right is understanding that you will always have losses to contend with, but how you deal with the losses will be the difference between success and failing. Remember no one, not even the best sports traders have a 100% success rate.
4. Never settle for less - If you have set out your trading strategy and the market does not fit or the chance is not right, move on there is always another opportunity. Never, never, never force an opportunity, if one is not offered according to your criteria then walk away. Getting involved when the market is not right is the quickest way to lose your trading bank.
5. Patience - We have all noticed that patience is a virtue and the rule in sports trading is simple sometimes you have to wait a long time.
6. Effort - Like all enterprises and jobs the people that realize success are the ones who put the time and effort in to understand the craft and sports' trading is no different. Learning a new art will take time and a lot of practice, but the incentives for individuals prepared to put the time in, are great. Effort in sports trading can be summed up as the ability and willingness to work hard to gain an borders on the competition in the case of sports traders this is the betting public and takes various forms.
7. Play to win, not lose - Sounds clear doesn't it, well how many times have you left a deal open in the market when you should have approved the lost and hedged out. How many times have you entered a trade because you were bored? Or how many times have you traded when you shouldn't have, like when you are drunk or in a rush. There is a big distinction between a sports trader who plays to win and one who is simply playing. A sports trader who trades to win will keep to a plan and neglect trading possibilities where there are too many variables for a confident trade or doesn't fit the criteria. They will also avoid throw-away gambles and will protect their trading bank at all times.
8. Confidence - Is having the thinking in your own choice making process and avoiding the impact of so-called experts and 'smart money'. The key to confidence is once again preparing and knowing what you will do when you enter a trade and more importantly what you will do when it goes against you. This can only really be achieved via good preparation and practice.
