(Click image to enlarge)
After the last post where I mentioned the fact that, for every strategy there is an alternate one I thought it would be a good idea to post up something slightly different. Most of the full-timers, myself included. Find themselves posting about the bigger events like the grand national as, for the main part they are the better opportunities. The markets behave differently to normal and they can be a good chance to get some larger stakes through the market. It’s not all about turning over huge stakes though, sometimes the thinner, poorer quality races can throw up a good opportunity. The key to making a success of it is avoiding making ‘maybe trades’ as I like to call them.
This afternoon there was some thin racing markets on offer, not the best quality at all. But I was using the time to try a few different things when this opportunity cropped up!
Look at the market overview chart on the left. It’s a short-term chart, you’ll see the line plotted for Mohaayed has plummeted from 3.10 into 2.66 in a matter of seconds, crazy. Prior to the chart it was trading in the market at 3.25. It doesn’t take a lot of common sense to realise that’s pretty un-realistic (19 tick movement). To add to the mix of things there was some large money chasing it down, possibly somebody caught out or on the wrong side of things, who knows. Although it’s fair to say there would have needed to be a significant amount of market support to keep it there after such a move. If you’ve read the guide too you’ll of identified this as a poorer quality affair, and a point at which you wouldn’t expect the price action to be fluent or ‘true’. So it made absolutely perfect sense to lay it at the bottom, when the flurry of movement subsided.
If you look to the right hand screenshot, you can see exactly why I say this. Possibly one of the easiest trades all day. Admittedly I have laid it for just under 500 quid, which is more than most aspiring traders stakes will be. But you can’t argue with it… the result being £26 in 26 seconds (£27 by the time I got my whole stake out). If only every return was so quick!
So much like the big events are great to whack huge volumes of bets through the markets, there are plenty that can bring a handsome return for the complete opposite reason! I think the only mistake I made here was not to back the original favourite Zafilani too… but maybe that’s me being a bit greedy. Over-exposure, using too bigger stakes is often the downfall in weak quality markets as there is not just the volume to limit the risk of using them so much, but when a move as extreme as this example it’s not all that bad.
For a Sunday, which I don’t trade as much as I used to the markets felt pretty sweet. Some funny business going on mid afternoon with huge stakes sitting around although that’s becoming the norm now (more so than before). It’s a good time to learn and gain some experience if you’re in a mon-fri job, that said with the evening markets here too now there is loads of opportunity, so make the most of it!