What’s a realistic return you can generate with £1,000 in your trading account? A common query that’s submitted.
Such an amount of money in your account is a scary thought for most. Especially if it’s at risk.
But in this article, we’re going to take a look at the possibilities and expectations attached.
Wart’s n’all, here’s a little perspective…
Being Blunt: Trader’s Truth
Unfortunately, this might not be what everyone wants to hear. But I’m comfortable enough with being unpopular if it means helping you…
The truth is; these questions kill me on the inside each time I see one. However, they’re that regular – it’s time to take the bull by the horns.
The reason they make my heart sink is quite logical when you think about it. It’s a highly subjective and variable question, yet the person asking is in search of a fixed unfaltering answer. I appreciate people just want to know is it worth their time or not, but giving a fixed answer is almost impossible.
With reference to trading being worth your time, my answer is: Undoubtedly. It’s completely transformed my life.
However, asking how much you can make from a grand needs extra input. For a start; How profitable is your edge? How often are you trading? Are you disciplined?
Eventually, over time you could make a fortune. But it’s not likely, without knowing what you’re doing. In the early days, I started with banks of around £600-£1,000 (and that was enough to get me where I am now).
You have to be realistic. Whilst £100,000 is possible in the first year, only a few will achieve it. Starting with the end in mind is always good, what are your aspirations? How much time have you got to devote? How many markets and at what average return would you need to achieve the end goal?
Thinking like this is productive, there are no two ways about it. But it’s very different to having a ‘daily target’ or looking for a quick cash grab with your £1,000 bank. In the scheme of things, that’s not a huge amount… even if it’s adequate, to begin with.
In no uncertain terms, I’m suggesting – think long term. It helps. Why? because it completely changes your behaviour towards the task at hand – for the better.
Think about it; if you’re setting out to make £3,000 a month – you’ll behave very differently to having a goal of £36,000 a year. The reality is, they’re the same.
Still looking for a figure? Of course you are.
Having got the previous explanation out of the way, it’s probably safe to give you some kind of ballpark figure. One that I know can be achieved, even if it’s not typical. So, with £1,000 trading balance (pre-race horses) I’d say a practical figure is £200-£250 profit over an afternoon, for someone who knows what they’re doing. If you’re trading in-play it could be a lot higher, but at the same time – there’s often more risk involved.
This leads me on to another point; you have to be ready for varying results.
Trading isn’t a job, with an hourly rate or salary. Sure winning traders make a lot of cash, but to do that they take the rough with the smooth. Exchange trading is more like running a business, there will be bad days, good days, the occasional expense and sometimes the odd freak occurrence (good and bad). Pinning all your hopes and dreams on one afternoon is likely to end in disappointment.
Every Exchange Traders Reality?
….but there’s more. The next assumption is that every edge is there to be scaled up. I wish they were, I’d have been on a desert island years ago. But not all situations are equal, some have the ability to scale very well – such as court-side betting. Others tend to break once you crank up the stakes. Just because it’s possible to make £250 with the use of £1,000 on a Saturday afternoon it doesn’t mean you’d make £2,500 with a £10,000 balance.
Does that mean you can’t earn more than the suggested ratio? No, hell no. I’m not the biggest earner on Betfair and don’t claim to be.
I think you probably should get it by now, but answering the direct £1,000 question is tricky. Hopefully, you have a more grounded way of thinking about practical returns on a limited balance.
In most cases I the initial question is always about one thing…
How Successful Can You Really Be? Maximum Results:
The answer; I don’t think many will ever know. Because those who are really successful rarely appear in the public domain, they’re far too busy for that (and they don’t want the attention).
However, of the remainder – you don’t have to go far to get an idea!
This very blog has shown it’s possible to make profits into the tens of thousands each month. To be part of the 2014 Betfair traders campaign it was a requirement. A promotion that Gruss Software users, Steve Howe and Peter Webb of Bet Angel also took part in.
In fact, when interviewed by the register in 2010, Peter boasted a betting bank of £250,000 (and turnover into the billions). Breathtaking sums, even if you’ve got an army of bots chipping away!
…and then there’s the Portuguese football legend, Paulo Rebello and Geeks Toy user Psychoff. Both take thousands from each football match they trade.
Sure, for every one success story there’s a 50 cynics – but that happens everywhere you go in the world. Furthermore, you’re not limited by previous success stories’ results. Everyone has to start somewhere after all.
Ultimately, daily targets and focusing on what you ‘should’ be making is never a good idea. You’re far better focusing on the task at hand – safely exploiting your advantage in the markets…
Top Update: [NEW] 10 Video Tutorials Added (+1 Hr 14 Minutes Worth)
great post mate
Thanks, Andy. Hope you’re well. Always good to hear off you!
Does it all comes down to skill and knowledge? As is success in many walks of life. And I guess getting trading skill and knowledge is down to finding out what works and what doesn’t? Is that it, or part of it? I don’t know, that why I’m asking you. (I suspect though there is truth in the definition of insanity as keeping on doing the same thing and hoping to get different (better!) results.
Excellent post, I doubt this question will stopped being asked… Bank, all you need to start with is explained in https://caanberry.com/bankroll-staking-strategy/
I am still struggling to grasp the scalping method, 4 trades so far, 1 successful and it was done in training mode. I’m not concerned yet at all about how much money I “could” potentially make, more concerned about my execution.
Thanks Stephane, execution is key. Rarely do people focus on this as much as the money… the right path for longer term success IMO.
Im bad at gambling and trading as well. Would find it hard to make the sort of sums you are talking about, though I work with very small banks. Trading seems to be just gambling with prices. I might make small amounts for several races and then lose it all when one trade goes bad. I admire those who make it pay
The key to winning is not guessing. Good trading is not guesswork…
What do you think of productivity targets instead of profit targets? My results improved drastically when I set myself a weekly turnover target by scalping football matches.
Hey AB, productivity targets would be very different! Love the game, not the result and all that… 🙂
Great article and I appreciate why the question is asked. For me the the starting point is all about acquiring the necessary knowledge and skills and that will determine how much you make – together with market liquidity.
Sure, thanks for the comment Andrew!
Making money on betfair has never been much of a problem for me my problem has been the discipline of not going on tilt/chasing losses etc. I’m currently working on some mindset stuff for myself
The biggest obstacle for all – when you have an effective edge though that feeling does subside a little.
At my best I can turn 1000 into 2000 in a day. At my worst I can turn 1000 into -5000 haha. Still have trouble when in Tilt. Can master the trades, but unfortunate cannot master myself a lot of the time
Sounds like punting, Rich! Self discipline is a big one.
What staking would you be using for a £1000 bank to be making £250 a day?
There’s a better staking post here, Dan. https://caanberry.com/bankroll-staking-strategy/
You’re question is answered, and with some examples too.
Great blog again only surprised you missed out your feeling on people jumping straight in using large banks and large stakes, cold reality if you can’t make a profit with a £400 bank, you are not going to make a profit with a £1,000 or £4,000 bank risking money you possibly can’t afford to lose.
Sure Mike. To be honest, as a long time reader you may have noticed that some things become a little repetitive! That would certainly be one of them. Pure and simple common sense as you say mate, cant win small – you certainly won’t win big.
Always a pleasure and a privilege to read your blog articles, Caan. It certainly whets the appetite to hear what can be achieved when armed with the right knowledge, tools, discipline and cognitive abilites. One day I’ll give this a good go. Just can’t commit the time and consistent effort needed at this time due to my domestic caring responsibilites. The only thing I can do right now is read, study, watch and learn.
Sure, Rob. You might not realise it – but that’s the best starting position as you won’t be tempted to make foolish financial mistakes, yet you’re open to learning.
Hi Caan, awesome post.
Get your mind right before worrying about getting your money right!
Listening to trading in the zone on audiobook mate. What a book it is!
Hi Caan, really useful to know what can be earned to help expectations.
Just starting out in the field, gaining knowledge 1st before dipping my toes in.
I am having 10000 bank roll and without trading am able to make 7000 in a year. All pre match selection and no trading. Is it considered good return?