Compounding profit

[Iron]

Nice article from Peter's blog - http://www.betangel.com/blog_wp/2013/04 ... on-parted/

I've created a spreadsheet that shows what happens if you increase your bank size at the rate of 1% per race, with a starting bank of £10. After 500 races, your bank would stand at £1433. OK, in practice, you're going to hit liquidity issues eventually (but it must be nice to get to a point where that's an issue!).

Let's say, to begin with, you're focusing on easily scalpable races. We're talking about making 10p from a tenner stake, which isn't massively difficult if you're disciplined.

This begs the question of why I don't adopt such an approach myself. Watch this space...

Jeff

[spreadbetting]

Nothing seems "massively difficult" when results go your way Jeff, it's only when they go wrong you realise there are no easy ways to win at this game.

[Iron]

So maybe the key is to work out why things sometimes don't go your way. For example, if there are some markets in which things tend do go your way, why not focus exclusively on those markets?

Jeff

Nothing seems "massively difficult" when results go your way Jeff, it's only when they go wrong you realise there are no easy ways to win at this game.

[PeterLe]

Do you remember one of Peter's early blog postings -Ten Pound trader? Worth a read

[LeTiss]

I remember the £10 trade idea very well, Peter.
However, I don't recall why he scrapped the experiment, I suppose PC had a mjaor impact

My advice to many newbies is stick to something you know, as your passion & knowledge will give you an edge over other traders

Since June 2012, I have cleared £48k from sports trading (after PC), yet 97% has come from just Tennis, Football & Darts. I only dabble on Horses on major races or when the favourite is very short, as the liquidity allows me some margin for error.
The point is, I could happily watch Tennis, Football & Darts all day & studying form is a pleasure. I reckon my knowledge exceeds the average punter, and even exceeds bookmakers, who only employ people to do what I do

Your example is fine, Jeff, but you don't take losers into account. For a novice starting with £10, they will probably have 100 losing races out of 500, and those 100 losses will wipe out the 400 winning ones. There's no shortcut in this game, it involves lots of homework

[Iron]

Possibly, although I would say that's due to lack of discipline rather than lack of knowledge.

If they are scalping and losing 1 in 5 races wipes out their profit, then I would say that they aren't choosing suitable races for scalping and/or they aren't cutting their losses quickly enough.

Jeff

For a novice starting with £10, they will probably have 100 losing races out of 500, and those 100 losses will wipe out the 400 winning ones. There's no shortcut in this game, it involves lots of homework

[PeterLe]

I remember the £10 trade idea very well, Peter.
However, I don't recall why he scrapped the experiment, I suppose PC had a mjaor impact

My advice to many newbies is stick to something you know, as your passion & knowledge will give you an edge over other traders

Since June 2012, I have cleared £48k from sports trading (after PC), yet 97% has come from just Tennis, Football & Darts. I only dabble on Horses on major races or when the favourite is very short, as the liquidity allows me some margin for error.
The point is, I could happily watch Tennis, Football & Darts all day & studying form is a pleasure. I reckon my knowledge exceeds the average punter, and even exceeds bookmakers, who only employ people to do what I do

Your example is fine, Jeff, but you don't take losers into account. For a novice starting with £10, they will probably have 100 losing races out of 500, and those 100 losses will wipe out the 400 winning ones. There's no shortcut in this game, it involves lots of homework

Hi LeTiss
I think Peter was just showing how it is possible to churn your money and how very small amounts add up.
Sometimes I use a 4 figure sum on the horses, but often hesitant to fire an order in. I have found it better to use smaller sums and get more of them through. Its just easier on the heart rate! Its just my personal attitude to risk

NIce work on the P&L by the way. Than puts you on a similar salary as the PM (after he has paid tax!)
I just find Football trading hard work to be honest. It just goes to show what you can achieve with hard work though.
I think anyone who is making regular profits on Betfair these days are having to work at it. Its not paved with Gold anymore; but there is still money to be made at it
regards
Peter