Using Minimum Stakes

[Bluesky]

I found PWs post regarding starting out as a sports trader very interesting. It would be good to get some feedback on some of my thoughts outlined below.

I have just started pre off horse race trading with £2 stakes. I have spoken to several pro and semi pro sports traders, who say trading this small is a waste of time as the money has to mean something in order for one to take it seriously.

I appreciate that trading with such small amounts I don't need to worry about (1) getting filled, (2) my order affecting the market and most importantly (3) trying to make correct decisions when significant money is at risk.

The way I look at it however, is that trading is so difficult for the newbie that trying to learn to read the markets as well as having to take into account (1), (2) & (3) listed above is too difficult for most people. Hence the reason why most people (95% plus) fail at sports trading.

I also think it comes down to discipline, and self knowledge. If you can't take it seriously with tiny stakes then there is not much point using them. Although it's impossible to find out, I would really like to know how many of the huge majority who fail at this, start out with minimum stakes. I suspect very few of them, most people want to make decent money quickly.

It would be good to hear of any pros who started out with trading minimum stakes and if you found the experience useful for when you moved on to trading larger amounts.

[spreadbetting]

I have just started pre off horse race trading with £2 stakes. I have spoken to several pro and semi pro sports traders, who say trading this small is a waste of time as the money has to mean something in order for one to take it seriously.

I think the only point to take from it is "in order for one to take it seriously.". With trading you'll always have to tailor it to your own mindset to make it work, something that concentrates their efforts may not do the same for you.

When I started trading I had a well paid but boring job I was looking to leave. I played with decent stakes mainly because I could afford to and for me it was all about making a living rather than some intellectual challenge or hobby. I'm sure if I'd have played with small stakes I'd have let so many bad trades run unclosed because the losses would mean nothing to me. But just because it helped me focus my efforts to succeed it doesn't mean it'll help you.