5 Things To Avoid When Trading

5 Things To Avoid When Trading

 

  1. Distractions
  2. No exit plan
  3. FOMO
  4. Get involved in markets that haven’t matured
  5. Letting previous trades influence you

 

 

Distractions

You will have read similar words from me before on this subject. If you are some sort of Zen warrior, you may be able to build some mental barriers to block out outside distractions. However, for us mere mortals we need to put extra steps in place. Just having a quiet area to work in, without the influence of any outside interference is something I consider very important. Imagine taking the family to work with you and then try to do your job!

 

Having No Exit Plan

Or even no plan at all! I am often staggered by traders’ lack of planning. A bad plan is better than no plan. One of the very first things I do when formulating my trading plan for a market is to identify a potential exit route. I have different routes for back and lay trades. But before I commit my money into a trade I want to know I can exit that trade with a minimal loss if I have got it wrong.

 

FOMO (Fear Of Missing out)

My pet hate, but a powerful emotion. Jumping on that bandwagon because you are scared to miss out is always punished harshly as I am sure many of you know. These band wagons or glory trains never last forever, and the later you get involved the more likely you will lose money. Spotting the beginning of a move and having that exit plan in place is so important. It does not matter what the twitter heroes are doing. Or any other traders you have access too. It’s important to realise that there are few that want to share their shite trades with you but are very happy to wave their cocks about when things are going well for them. It sucks you in, is destructive and I strongly advise you to do your own thing without any regard for what others say they are doing.

 

Get involved With Markets That Have Not Matured

What do I mean by this? A great indicator of a volatile market is to watch the candlesticks, what we are looking for is a smooth progression, and a build-up of money traded at each odds point. If the market is jumping up4 ticks and then down 3, then I do not consider the market safe enough to enter. If you watch the video below I hope this will make sense.

Be Affected By Previous trades

The impact of a previous trade is something we all feel. That includes a winning trade or a run of winning trades as well as losing ones. Trading can be severely affected by confidence. So when you are flying you can feel almost invincible, and when you are losing it can drag you into a dark place. This opens up a huge can of worms such as over trading, chasing losses, increasing you stakes unrealistically when you are doing well. All are destructive. Keep a calm, level head and don’t let your emotions carry you away in either direction.

5 Things you need to be a successful trader

Successful Trading: Five things you need:

 

  • Mental toughness
  • Focus
  • Toolkit
  • Process
  • Support

 

This list is by no means exhaustive, but it’s a good start. I could spend ages talking about each subject here. If I get asked enough then I probably will!

 

 

  • Mental Toughness

Let me be blunt. Trading is a real mind melter. It really gets inside your head and messes with it. Making what are normally rational decisions become very difficult in the heat of the battle. When you have your hard earned money involved it changes everything. Some people are over cautious. Others think they are invincible. It’s not until after the event and they see the result of their actions that reality kicks in. The key skill is to be able to manage your emotions, keep them in some sort of control. This enables you to apply the focus and processes you need to make a successful trade. Learning to trade is a long and arduous road. Even with a high level of training, it will take lots of practice and screen time. Lots of knock backs, false starts and disappointments. It is no coincidence that the guys I have been involved with long-term are mostly successful. The ones that lack the mental toughness to “dig in” are the ones who don’t quite get there.ind melter

 

  • Focus

Focus is something I think many of us overlook when it comes to planning a trading session. A lap top in the front room while eating your tea, listening to the days news from your partner and having a couple of excitable kids jumping all over you is not ideal conditions for a successful trading session.

Make sure you have a quiet place to trade with no interruptions. Imagine being Neo when he plugs into the Matrix – You won’t go far wrong.

BUT, do not exchange trading for spending a little time with your family.

 

  • Toolkit

What do I mean by a toolkit?  The tools of the trade. Starting with a bank. This should be money put aside specifically to trade with. Money that you can afford to lose, (who can afford to lose money????) i.e You won’t need it back to pay your rent or mortgage at the end of the month. It doesn’t have to be a huge amount. Even £50 can get you started.

 

Second on the list is hardware/internet. A mid-spec PC will be fine to trade with, as long as you have 10MB internet speed you will be fine. The most important part of a hardware set up is a decent sized screen. The bigger the better. (I use a 27”).

 

Third on the toolkit list is a third party App. This is essential. It enables you to see the signals that the market provides and find your trades. You can execute them quickly with one click mostly and enable protection systems like “Take SP”.  I am not going to recommend an App, but the most popular ones are Bet Angel, Gruss Betting Assistant and The Geeks Toy. All slightly different and all top class products.

 

  • Process

Sitting there blindly clicking away may well make you a few quid. But in general, knowing what you are doing is a good idea! The markets throw up signals that help you to work out what may happen next. Your mission is to find these signals and interpret them.

What is vital is to concentrate on the process and execution, NOT how much profit you are making. That will come with time once you have mastered the PROCESS.

Training is an excellent idea. Whether that is with me or with someone else. Going alone isn’t always the best investment in your time or bank balance. Invest in yourself!

 

  • Support

This comes into two parts really.

 

Part 1 – Partner and family

You must have the support of your partner when starting this journey. They will soon get fed up with you being away from the family unit every spare hour you have, possibly losing money too. Partners expect instant results!!!! This is very unlikely. However much you make, it isn’t worth losing your partner for.

 

Part 2 – Other Traders/Mentors

From my experience running MGW, our Mastermind Program is a great success. It brings like-minded folk together, lets them learn from each other in a friendly and creative environment. Having a shoulder to cry on. Someone who understands what you are actually talking about means a lot. It’s hugely beneficial both in terms of learning and your mental health too.

 

My next Workshop runs on 24thSeptember in Coventry.

There are still a few places left.

Workshop Link

 

F.O.M.O

F.O.M.O

Fear Of Missing Out

 

The fear of missing out is one of the biggest hurdles we face as traders. We see it on a daily basis with our Mastermind Group and on all the social media platforms too. It’s a monster alright.

 

So what is FOMO? How many times have you seen the old bandwagon leaving town? The urge to jump on is sometimes just too great to overcome. So you just manage to get on as it sails on by. Just as it slams into reverse gear and makes you giddy with the pace it reverses at!

 

During the Workshops we do, the very first thing that is said is to do with finding a SAFE place to put your money. It’s almost “exit first” then see if you have an entry point. Many times FOMO takes over, and all common sense and safe entries are forgotten.

 

The secret is to learn how to get on that Band Wagon before it leaves town. In fact even better if you can drive that bastard! Then when you have got as many as possible along with you for the ride. You jump off and leave it to find its own way.

 

The alternative is when you miss the initial move, find the driver. Who is driving this Band Wagon? When I say that I mean which other runner (s) are moving in the opposite direction due to the BW move? Watch them very closely. The candlestick graphs may be a mirror as in the diagram below.

See the collation of the candlesticks?

FOMO pic

 

 

 

 

 

 

This may suggest that the drift on the fav is being primarily caused by the steam on the 2nd favourite. So who is the driver? Which is driving which?

The way we look at it is the Favourite always wants to be backed. Everyone wants a winner, don’t they? So where better to start than with the fav?

So if it’s drifting, this must be caused by another runner(s) – Usually more than 1. In this case, I take it that the “driver” is Ladder 2. I have layed the favourite. So when is the exit point? That’s either to exit the lay trade or even an opportunity to grab that reverse gear I spoke about if you missed getting on the Band Wagon.

Wait until the driver stops, there will be signs it’s slowing down. There is almost always a delay before the odds start to react on the connected runner. In this case the fav. That’s the signal we are looking for.

 

Just remember next time you jump on that Band Wagon. Here in MGW, we are waiting to get off at just about that time.

 

If you are serious about Trading and would like to learn. Please take a look at our Workshops (LINK) and Mastermind Program (LINK)

 

Add us on Twitter at @itsamugsgame and @Headgamestrader or perhaps visit the Facebook page at https://www.facebook.com/ItsAMugsGame/

Tap Tap Boom?

Something happened to one of the guys I Mentor on Saturday that I want to share with you.

The trade(s) were on the Newcastle Utd v Wolves match in the Championship. So quite a strong market.

There were bets placed prior to kick off.

In Match Odds and also cover bets in the Correct Score market.

After the 1st goal to Wolves further bets were placed in the Match odds and correct score markets. Finally at half time a couple of other bets were placed in the same markets.

At 4.06pm. Just after Half Time the market was suspended and then closed. The bets were settled. No explanation.

So my Man the turns his attention to other markets and forgets the Newcastle match as the markets is settled. It’s over in terms of trading.

At 16:40 he notices that his balance was down and investigated why. To his shock and dismay he discovered that the Newcastle market had reopened and his bets had re appeared. There was no liquidity in the market and no way to exit these open positions. He was unable to trade out of his position and he ended up with a loss of almost £500.

If the match had not had closed when it did, he would have ended up at worst with a scratch position as the strategy he uses ensures this.

Betfair altered this account at 16:19, but did not notify him. He claims they could have easily have done this as he had already had a conversation about this it on Twitter.

After complaining to Betfair about this he received this email.

Hi *****,

 Thanks for getting in touch.

 Please accept our sincere apologies for the issues you experienced with the Newcastle game today. As you are aware, we settled the Newcastle markets prematurely as 1-0 during the second half. You can see this in your account statement where the 1-0 bet has been paid out as a winner initially.

Once the error was realised we unsettled all markets and they were eventually restored for trading. I appreciate your frustration in this matter as by the time the markets were active again you would have lost the best chance to trade your positions. It’s an unfortunate situation and we apologise for any inconvenience caused by this. Please be aware that if you place a bet with the intention of subsequently placing a separate bet to reduce the liability incurred by the initial bet, there can never be a guarantee that the Services will be available at the point you wish to place the subsequent bet (this is the case regardless of whether or not the unavailability of the Services is due to a matter beyond our reasonable control). Although we will offer this facility whenever possible, we aren’t liable to refund losses if there are technical issues which prevent this. As a goodwill gesture I have added a £25 free bet to your account, please be aware this is purely a gesture to you as a customer not an admission of any guilt regarding the issues today.

 Let me know if there’s anything else I can help with. Or maybe our FAQs will come in handy?

 Thanks,

*****

Betfair Customer Service Manager

 

So a Free £25 bet and a no admission of guilt caveat, even though the admission of guilt is glaringly obvious! Oh, plus a handy hint to read the FAQ’s!

Whenever I read the words “inconvenience and “unfortunate” in this context (he just lost £500 quid!!!!!) it really pisses me off.

In a previous Twitter message Betfair said this:

“Unfortunately our live service provider auto settled the game early, we have had to re track the markets and bets as such and settled accordingly. Apologies for this”

Tap Tap Boom eh?

After further complaining and a threat to take this to IBAS the response was this:

“Thanks for getting in touch.

We’re very sorry to hear about your dissatisfaction with the matter.

The market would appear as closed however this is with the complete intention of having it reopened as my colleague explained we would still settle according to the result however to opportunity for further trading and cashout would not be a possible as a result of circumstances beyond our control.

Despite this you would notice your bet has been settled according to the result however subsequent may not be a possibility as a result of the occourance. Unfortunately our position on the matter has not changed and whilst we can understand the inconvenience this may have caused, we will still be able to provide with the same free bet amount however would not be able to provide much more I’m afraid.

Let me know if there’s anything else I can help with. Or maybe our FAQs will come in handy? “

My question to Betfair is this. Do you understand how a Betting Exchange works? You change the interpretation of your Ts & C’s to suit YOU. This is a clear error on your behalf. Even though you hide behind a “3rd party service provider”, how is it possible for customer to be close to £500 out of pocket due to something that he has no control over. If you are saying that that’s the way it goes  – “sorry for any inconvenience” how can anyone trade with any sort of confidence? Do you accept that when TRADING you open up positions with much larger liabilities than if straight betting (as on the Sportsbook). We do this with a view to locking in profit or Loss. It’s the fundamental part of TRADING. 

I am totally disgusted by both the condescending attitude of the Consumer service “managers” that replied to my friend, also the total lack of understanding of their own business model and how THEIR customers use it.

So here are the facts, You make up you own mind.