Betfair Trading v’s Forex Trading Analysis

Market Analysis…

Market AnalysisBearing in mind market principles learnt in Forex trading can help to improve trading in the Betfair markets.

For those that trade Forex you’ll probably know most of this, but if you don’t it could help a lot

During my relentless search for ways to make profit in the markets I looked towards Forex trading, why? Because there was next to nothing in the way of Betfair education. Surely they can’t be that much different either, right?

Actually I learn’t they are, but there’s plenty that does apply to the Betfair markets as-well. It opened my eyes somewhat.

The 3 Pillars

In the image above Market Analysis is represented by the stool bearing three legs. The idea being if you was to take away one of the legs or even worse, two, your analysis is likely to go crashing to the ground. It’s the reason it’s often hard to identify a good trade based solely on one indicator, but more on a collection. Obviously if it’s a very strong indication it may only be one that is needed although for piece of mind and better trades its best to be aware of all three.

So, the three legs….

Technical Analysis

The theory is that a person can look at historical price movements and determine the current trading conditions and potential price movement.

The main reason for using technical analysis is that; theoretically, all the current information is reflected in the current prices.

It’s a bit like that old saying that says ‘history repeats itself’. On Betfair that doesn’t necessarily mean all in one event or race and holds true to a degree but this kind of analysis can’t tell us when somebody is about to log in and place a large bet for example.

Technical analysis (usually with graphs) is the thought of looking for similar patterns that have formed in the past in the view they will form and act the same way once more.

Fundamental Analysis

Fundamental analysis is a way of looking for price movements based on outside influences that are likely to influence the ‘crowd’ – for example TV coverage. A great example of this short-term may be a horse rearing up on entry to the stalls! what happens? the price drifts rapidly as traders scramble for a free ride. Just watch next time it happens! The more the horse plays up, the better.

Sentiment Analysis

This one I like to refer to as the ‘domino effect’ and you’ll all of seen it in the markets already! When a price starts to move if the sentiment is strong, the move may be aggressive. You’ll see it going in ‘waves’ almost – it’s a pretty important one for Betfair trading, particularly if a huge bet is dropped in the market! (see below).

Big Lump Dropped

With Betfair being a betting exchange the latter two interest me most. Not everyone is looking to trade or cash-out their position after-all!

Hopefully that gives you something to think about!

Related Post: Swing Trading [Video Post]

3 thoughts on “Betfair Trading v’s Forex Trading Analysis

  1. Hey Caan! Have you thought of running a trading session via twitcam? I follow you on twitter but I keep missing your tips there. I don’t think you can share your screen but all the same it’d be interesting to know how you look at the markets whilst you do it live seeing the prices on Betfair at the same time.

  2. Thank You for this awesome comparison between betfair and forex trading. I really like your article. I am actually a binary options trader. For the kind information of the readers who are also interested in binary options trading, you can open an account with lxmarkets. It is a very good broker with fast payout. It is also a regulated broker. Go to their website and have a look of their services.

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