Today I wanted to look at and re-visit how trading works and what a simple process it is once we know what we’re doing. I think a lot of punters are put off because there’s a certain amount of effort required in order to make it work.
I want to quote someone I spoke to recently about the subject and it made me smile because it’s so true!
‘The downside to trading is that you have to spend so much time in front of the computer’. You might as well say ‘I make great money from a well-paid job but the ‘downside’ is that I have to spend eight hours a day in an office to get it’.
Now I’m not suggesting that we have to spend eight hours a day trading but to some degree we do have to spend a certain amount of effort in making the “game” pay.
So let’s simplify what trading is and the way we should look at it before we put that “effort” in.
Like anything in the betting world, it’s a numbers game. This doesn’t have to be overwhelming or complicated it’s quiet simple maths once we’ve understood it.
Let’s use an example using the old and understood principle of buying and selling. I have tried to lay this out in a simplified manner –
We back a horse at 9/1 in the market first thing in the morning for £50.
The 9/1 needs to be seen as a percentage. These odds state that the horse has a 10% chance of winning. So in theory we’ve “bought” the horses chance of winning the race at 10%.
Later in the day we see that the horse is now 4/1 in the market. We can now “sell” its chances at 20%, double what we “bought” it for.
The horse wins and we pay collect our profit of £450 plus the £50 staked.
We layed the horse at 4/1 so we need to pay out £250.
Our profit should the horse win would be £250 (this is before commission of course).
However should the horse not go onto win then we lose our £50 stake but as we layed it off we get to keep the other punters £50 (that punter “bought” the horses chance at 20%) meaning we have lost nothing.
So I hope that you can see, trading is simply buying and selling a horses chance within the market.
There are now so many ways of trading that it can all seem a little overwhelming. One of the most popular forms and one that I use on a daily basis, is in-running trading. This is where we back (buy) the horse before the race and then lay it off (sell) it at a greater chance once it’s off and running.
I have published a video below of me trading pre-race to give you an example of how with a little bit of effort you can be making money from trading. It is a little cringy to watch as it was one of the first video’s I ever made so with a deep breath here it is –
I hope you enjoyed watching the video and got something from it. Please leave any comments below and I will get back to you.
So in the video you saw me trade on the second favourite in the 16:20 Windsor. To arrive at this selection I simply went to oddschecker and clicked on the relevant market. Scrolling down the screen I looked at the pie chart at the bottom and looked for the horse that had received the most bets as you’ll see in the image below –
So Calm Attitude was the most bet on horse and was steady around the 10/3 price. This enables us to take one tick profits within the 5 minutes before the off.
I hope you enjoyed the video and if you have any questions please leave a comment below and I’ll get back to you as soon as I can.