To green or not to green?
A further question from a novice scalper. If you achieve a scalp, you have the option of letting it run (essentially having a bet to nothing) or greening up to guarantee a profit. Are there any circumstances when you would take the first option? Are they mathematically equivalent, in that in the long run they would even out?
I always green up
I'm sure Peter could give extraordinary amounts of data supporting this, but my reasons are more psychological
If you have traded a profit on a selection below 1.50 in price, then greening up doesn't eat away much profit anyway, so you may as well take the money on offer. However, for selections that are bigger in price, you're basically hoping it wins, or nearly wins - that's taking you down the mental path of punting. It's this gamblers instinct that leads to horrendous decisions like chasing losers, or leaving a bad trade to go 'in play'
Greening up gives you a traders mindset instead! Also, it's frustrating and disappointing when you've made some good trades, but then allow that money to slip through your fingers.....disappointment and frustration often tricks the brain into making bad decisions
If you have a £20 green on a selection trading at 5.5, then greening up for a guaranteed £3.63 is brilliant. You can then sit back knowing you're doing something right with this trading lark - what a great feeling it is when you don't give a shit who wins, you've made money regardless. This positivity has an amazing impact on your ability to keep moving forward
I'm sure Peter could give extraordinary amounts of data supporting this, but my reasons are more psychological
If you have traded a profit on a selection below 1.50 in price, then greening up doesn't eat away much profit anyway, so you may as well take the money on offer. However, for selections that are bigger in price, you're basically hoping it wins, or nearly wins - that's taking you down the mental path of punting. It's this gamblers instinct that leads to horrendous decisions like chasing losers, or leaving a bad trade to go 'in play'
Greening up gives you a traders mindset instead! Also, it's frustrating and disappointing when you've made some good trades, but then allow that money to slip through your fingers.....disappointment and frustration often tricks the brain into making bad decisions
If you have a £20 green on a selection trading at 5.5, then greening up for a guaranteed £3.63 is brilliant. You can then sit back knowing you're doing something right with this trading lark - what a great feeling it is when you don't give a shit who wins, you've made money regardless. This positivity has an amazing impact on your ability to keep moving forward
Thanks for the separate justification. My problem has always been acquiring the trader's mindset. My reason for going along the automated route was to try and eliminate the impulse trades of the punter. It's a salutary warning that you can still have to be mindful of introducing 'gambling' to an automated system.