How To Make A Profit From One Simple Method – Part IV of Trading
Over the last couple of weeks, we've looked at various aspects of trading including, WOM, percentages and having the right set up. I've linked all of the previous articles, below –
Part Two – Don't Get Pissed And Trade
Part Three – Weight Of Money, It's All On The Other Side
Part Four – Trading The Percentages and How To Understand Them
So, now we have a basic understanding of some of the principles of trading, we can move onto some simple methods that can be used to trade.
One of the most common, least risky and easiest methods of trading is scalping. There are several degrees of how we can scalp but in today's article, we're going to look at the easiest.
This method can apply to any sport and we're looking to secure a profit before the event starts. We'll use a horse race as an example –
The first thing we need to do is to look at our WOM principles.
We head over to Oddschecker and look at an upcoming race –
We'll concentrate on the favourite.
Using the pie chart below the market we can also see that the favourite, Ranch Hand is the most backed horse –
So far so good.
Now we need to look at the money available to back and lay on Betfair –
There is £1,761 on the Lay side and £1,066 on the Back side. This means that there is more money wanting to back the horse than there is to lay it.
For a more detailed explanation as to how this works, read this article from earlier this month.
This would suggest that the price of the horse is going to go down. In this case, we would now Back the horse at the current price and then lay this off when the price shortens up.
As you can see, I actually got matched at one tick lower. That fine and here's what you'll see –
You can see in the image above, that the price immediately shortened up. I simply used the cash out facility on Betfair to make a guaranteed profit no matter what happened –
That whole process took me less than 1 minute to execute.
Now, I appreciate that £0.40p is hardly life-changing but once you've mastered the skill of scalping, you could use larger stakes. A £100 stake would have returned £1.60. If you were to do this over 5 races a day, 6 days a week, you would have £192 extra in your betting bank!
There will be trades that go wrong of course, and next week, I will take you through a trade that drifts rather than shortens up and what we need to do in those situations.
Until then, have a play about with some racing and paper trade some selections. Get used to this simple method, make sure you use the WOM and percentages mentioned in previous articles and you'll be well on your way to profiting from your trading.
There is £1,761 on the Lay side and £1,066 on the Back side.Hi eddie where on the betfair exchange does it give this info.It says 1.97 to back and 1.98 to lay.
We simply add up the sums of money that appear in each box. I have a calculator next to me when looking at the markets. If you use software (something I will be covering next week), it will display the total figures for you.
Hope that makes sense and let me know if you have any further questions 🙂
Thankyou so much eddie