This article will look at the top 5 Betfair Trading Mistakes that beginner sports traders tend to make and look at ways that beginners can use to avoid making the same mistakes yourself.
Top 5 Betfair Trading Mistakes
1. Stake Size Too Large
I am a member of a couple of sports trading groups and this is definitely the number one Betfair Trading mistake I see beginner sports traders commit time and again.
Often they see some Football Trading Guru, trading with £100, £200 or £500 stakes, and then use those same stakes for their own trading.
This is a recipe for disaster as it is likely the Football Trading Guru was very “selective” when choosing the trades he lets his followers know about.
When the inevitable happens and a trade goes wrong, beginners are more likely to compound their error by increasing the risk on the trade in a desperate attempt to avoid a losing trade. It doesn’t take too many trades like this to blow an entire sports trading bank.
My recommendation is to concentrate on improving your sports trading knowledge when you first start getting involved in sports trading. I wouldn’t even put any of my own money at risk at first.
Instead, I would suggest you create or find some sports trading strategies (concentrate on ones with a good risk to reward ratio to start with) and then paper trade these strategies for at least 100 trades.
I know that the vast majority of people reading this will not have the discipline to do this but if you want to be a successful sports trader you need to be able to do this.
Once you have paper traded at least 100 trades for each strategy, you will have some idea of which strategies suit you better and which are more likely to be profitable over the long term.
You can then start trading the strategies with your own money, but again I would recommend that you start out small using the minimum stake amounts on Betfair (currently €/£1). Once you gain confidence in using your trading strategies, you can up your stakes gradually over time.
2. Chasing Losses
Probably one of the hardest things to accept as a beginner sports trader is that you will have losses and not all your trades will be successful.
This is especially true if you have come to sports trading from a matched betting background as with matched betting as you are used to making a profit on every matched betting trade you do.
So many beginners waste time, trying to come up with a strategy that will win every time but trust me when I say no such strategy exists.
In Sports Trading, you have to learn that accepting losses is just part of the game and that you need to focus more on whether the strategy is profitable over the long term.
If you have an attitude, that you need every trade to be at least a scratch trade, then this is only going to lead to you taking on unnecessary risks and having bigger losses than if you just learned to accept the smaller initial loss.
My advice would be to have a predetermined exit strategy before you enter any trade. This can be at halftime when a goal is scored or by x number of minutes into the game. Just make sure that you have a clear exit strategy before you enter a trade and that you stick to it, as this will help minimise your losses.
If you are letting trades run until the final whistle even though your strategy says you should exit on 70 minutes, then you are not trading, you are simply gambling.
3. Giving up too soon
This mistake will probably surprise many people but giving up on a trading strategy too soon is one of the main reasons new sports traders fail.
Many who have 2 or 3 losses in their first 10 trades of a particular strategy often think, this will never work and give up on that strategy. However, if they were just to stick with it, they may find that they were just unlucky in their first 10 trades and that over the long term, the strategy is profitable.
Again this is where I think paper trading a strategy can give you an advantage. As you aren’t risking any of your own money, you are more likely to give a strategy a proper go.
4. Trading too many matches at once
To be a successful football trader, you need to be highly selective with the matches you choose to trade. This is especially true on a busy Saturday where multiple European leagues will be playing at the same time.
You need to focus in on the best selections for your chosen strategy so that you can give the time needed to properly trade these matches.
If you are jumping from one trade to another, then you are likely to miss trading opportunities or exit signals as you don’t have time to focus on each individual match.
Instead, If you are a beginner then I would only focus on one match at a time until you gain more experience with sports trading.
5. Trading without an Edge
Trading with some sort of edge is the key to being a successful football trader. Just doing simple things like pre match research, using trading software e.g. BetAngel and using in play stats software (e.g. Live Stats Module) can help you gain a small edge over the average football trader on Betfair.
Obviously, there is more to developing a trading edge than the above but every little thing helps.
Just remember that no football trading guru (no matter how expensive their course is) can give you an edge with your trading, you just need to discover it for yourself by building your sports trading knowledge and experience over time.
I hope you enjoyed our article on the top 5 Betfair Trading Mistakes.
If you did then you may also be interested in our article on how to keep track of your sports trading.