A horse race or a game of soccer are examples of sports events where Betfair trading methods are often applied, allowing you to “back” or “lay” the results of such centralex events working in enormously liquid markets often consisting of many millions of pounds.
Backing and laying is usually applied together each time you assume a movement in the price towards the positive direction which in the end means a profit, assuming you backed and laid correctly of course! This may be compared to buying something then selling it for a higher price in the event that its market value goes up. The chances available on a sports trading event are the same as the market value for a commodity, and the prices move in much the same way.
Trading exchanges like Betfair or Betdaq are the only sites where buying and selling the outcome of a sporting event is possible, while using back and lay functions on the exchanges. So it goes without saying that sports trading exchanges need both buying and selling of trades within a specific event to create the fundamental working of an ‘exchange’.
Depending upon the likelihood an event resulting in a certain outcome, backing odds are always higher than laying odds; and these two sides of a trade can be taken in either order, just as with any trade of any commodity.
Betfair trading as a full time career is totally different from hobby trading which many people are involved in since the inception of these trading exchanges. Professional betfair trading is quite complex and is very hard to master fully. Bots and software have already been developed to help simplify the often complex process of entering and exiting trades.
You should be aware of the existence of individuals and even companies who manipulate the markets just as happens on the world’s financial markets, utilizing spoof money. This phrase refers to trades which are entered, usually very large trades, simply with the intention of spooking the markets and other traders into jumping on board a trade. Just as with commodity trading or financial trading, large funds suddenly entering a market in either a buy or sell direction can have the result of making other traders quickly follow the big money, in the hope they are onto a winner. However with spoof money, it disappears as quickly as it arrived and you are left exposed to a position you had no rational reason for taking, hence why professional traders are well-versed in such matters and don’t fall for it, or at least shouldn’t fall for it anyway!
It is actually quite hard to identify spoof money until you have a few years experience, but when you notice an abrupt increase in the amounts being placed in the market (either back or lay) only to vanish after some time, then that is the most obvious tell-tale sign to look out for. Such positions are taken with real money however the trader who placed it in the market only meant to use it for the effect it has on scaring others concerned, rather than as a genuine trade he intended to see through to the outcome of the event in question.
In Betfair Trading, there are a huge variety of types of trades available. Your final choice will completely rely on your trading preferences and risk tolerance, or perhaps some specialist knowledge of a particular sporting event, such as horse racing or football statistics. Pro traders tend to be experts in a specific event, and avoid all others like the plague. This is not a game for people with a hunch! Just like financial trading, if you don’t study the news, fundamentals, charts and all other indicative factors, you will soon get burned by those with more knowledge than yourself.
There’s scalping which is a short-term trade, making a lot of small profits by just buying and selling at very close prices, just like scalpers do with the stock markets. As noticed in games particularly where goals are scored by the home team, Swing trading is the approach being used by traders where they predict final results by looking at the algorithms and statistics to be able to choose on which side the marketplace is most likely to move. Because you become unsure when the swing will take place or if it can ever occur, there can be more risks associated with swing trading than scalping.
The more time you stick to the trade, the more chances of failing. As the name implies, a technique known as Cross Market Betfair trading is something that entails placing back and lay orders on numerous markets all at once. Because of the presence of varied markets, this trading is a lot more exhausting and challenging as you have to do an investigation on each market and evaluate various possible developments and outcomes according to a plethora of factors which all have a role in determining the eventual outcome. What causes it to be more tedious is the fact that it can only be accomplished manually, no software can take the place of a seasoned trader.
Right before you start trading on Betfair, be sure you have another bank account for trading purposes which is separate from your savings or general use accounts. As a trader, you must develop discipline and be sure that you simply make deposits and withdrawals on this account on matters regarding trading, nothing else. In this way you can track your progress more accurately and take the necessary action if things are not going too well for a while.
For beginners, Betfair trading will probably be really challenging, and expensive too; which is why you need to be firm enough and avoid being easily disappointed or depressed as failures are common in trading especially if you are still learning. When you make profits in your early days with Betfair trading, then consider that a reward and enjoy the spoils of it.
Your state of mind in the course of trading is vital as this will impact your overall performance. Stay calm, focused, and free from distractions. As a trader, bear in mind that in this business, money is never guaranteed. With so much risk associated with this business, keep in mind to maintain your stakes at low levels until such time that you have already learned the techniques of your preferred trading method, and achieved notable successes which you can replicate.
To be able to learn the various types of Betfair trading, it is suggested you start with football trading as this only involves two teams making it simple to comprehend the limited number of variables and outcomes.
Don’t focus on the money you have lost, but on the money you have attained. Losses can be put down to a business expense, as you do learn from each losing trade.
Above all, don’t get emotional when trading as this will only give unfavorable effects on your self-discipline, so make trading your pastime at the beginning, and be content with trading money only within your means. This will give you peace of mind and the courage to make the right decisions at the right time, which is the only real rule to making profits in this business.