Betfair Swing Trading: Traders Holy Grail?
- What Betfair swing trading is
- Why it’s so important
- How you can get started
Swing Trading on Betfair Explained
Why Swing Trading?
Screenshot at the top of this post shows a swing trade I caught at Ripon this week (June 2011). A decent move, I had to sit on my hands towards the end!
I remember this trade vividly. Right now, because it’s a fair result for me on average. But mainly because I was burning to get out of the trade for an age, it seemed like an hour although was probably just a minute. I hadn’t used a huge stake either, looking back, maybe I should have.
In the end I got out and it continued to shorten, which is just typical. But I think my actions were right thing at that point in time. A little “market noise” scared me into thinking I’d loose a chunk of ticks which prompted exit. In highn sight, that’s the very reason that catches out others that aren’t as far down the path as me just yet.
The main entry and exit I’ve underlined in green. You’ll see at times there’s a little scaling in and out with the odd cheeky scalp too. These were based around how I felt with the price action at that point in time.
One thing’s quite obvious though; for a £150 initial stake and ten minutes of trading it brought a £40.26 return. Where else do you get a return on money like that?
What Prompted Entry?
By now your probably burning to know what gave me the confidence to wait?!
First off, I’d had a look at the market for a minute or so. Bookies odds checked just to see if there was any stand out moves. A couple of prices in the market looked pretty weak, as they drifted this runner had closed but only slightly. Bookies odds were a little shorter than Betfair, nothing unusual.
I thought on it a little and watched money entering the market, doing nothing. Initially I entered for half my stake, it didn’t really look like a move was imminent. But then a little flurry of cash appeared, the market started to ‘form’ and so I went in for another £75 catching the last few quid at that price. Almost instantly I was a tick or 2 in hand. I was thinking of taking part of my position out to move my green/red crossover. If it had it not moved a little more I may have been tempted, it was still that stage of market development where things weren’t clear.
As cash started to pour in it seemed to be the only real runner attracting support in the market. Quite simply I waited, constantly re-assessing the situation and asking myself ‘is it changing?’ Sounds simple eh? it was…
The biggest hurdle was my mind. Seeing and perceiving what was happening, while believing in it without feeling attached to the outcome. Or loosing out if it didn’t quite go as expected. You can see from the Betfair graph there was a few quid for that one as it didn’t really drift back out!
Getting Started Swing Trading
Betfair Swing Trading Only Requires Small Stakes…
The main aims were to show it’s not impossible to make a fair return off a small stake.
Each day there is usually at least one good chance of a move. It may not always be the case there are loads, sometimes there are but it’s a bit like that saying about busses – you might have to wait for ages one time where as another they all come at once! Probably one of the most fitting phrases to describe Betfair swing trading.
If you don’t look at it like that; Betfair swing trading will probably have you checking into some form of mental institution sooner or later…
It’s hard to say when all the best opportunities will come, or when to enter and exit. It’s not always possible to get the very best points as I say somewhere in my rambling.
If you can find a move like this each and every day for just a small stake it wont take long to build up the bank.
Betfair swing trading is the most difficult approach to master in my opinion, although as with everything in life the best results often come from the discipline that is the most difficult, otherwise everyone would be doing it! That said, finding one or two opportunities a day shouldn’t be too hard if you look enough.
Swing trading is a long-term approach. Keeping that in mind might make things a little easier…. Good luck!