A lot probably. But we will see…
I’ve answered it over and over. But the main questions in trading always centre around the same thing:
- How much can be made?
- What amount can you start with?
- Realistically, how fast can you make money trading?
Given we’re entering a slightly duller period than usual. Let’s see!
Why Do It?
To answer the above points for a start. But to not only answer them, show it can be done realistically.
Also I think with various sites and twitter accounts you see bouncing around now, realistic expectations and reality of winning as a trader, pre-race, has slipped to the side. It’s all about consistency, doing the right thing and consistently picking up some profit. Not a roller-coaster ride, taking excessive risk and thrill-seeking.
When I started out, I completed a challenge thread on the GeeksToy Forums. Discipline and avoiding the urges to over-trade or over-stake (sometimes through boredom) were the objective. For this it’ll be much the same.
I think half the battle of using a smaller bank is just the fact you won’t have big wins, race on race. Which inevitably leads to over-trading and over-staking, I’m sure many can relate!
So what’s the deal? I’ll be starting off with a tiny bankroll (just £400), so the objective is to manage risk as much as possible. Keeping small and consistent gains while limiting potential losses.
It’s quite likely that most results will be a couple of pounds at a time. Exactly as I suggest new traders begin.
Starting Bank: £400
Time Period: 3 Days (Wednesday to Friday)
Objective: Profit, hopefully. 30-45% bank increase maybe?
I haven’t used such a small bank for a long time, so I’ll need to make sure I don’t get sucked into over-staking for the size of bank. In most cases I suspect I’ll be using stakes of £10 – £75, maybe a little more when the time is right.
The main problem I foresee will be the amount of unmatched lay money I can have in the market at any one time. £400 exposure doesn’t amount to a lot at prices over 4.0. I won’t be able to leave so many bets lying around as I might usually.
It’s a reasonable amount that others would start with. When asked, I often say around this mark is enough to make some money. If you cant make money with a £400 bank, a £4,000 or £40,000 isn’t going to be any extra help. It’s just going to hurt more when you lose.
To the majority, having much more than a few hundred quid to play around (available to blow) is just unrealistic. There are also some myths around you can’t make money with a small bank, lets clear them up!
Why 3 Days?
At first I thought I’d just do it for a day, but then results could just be luck. Three days seems to be long enough to expel the luck of variance, but not quite so long that I become completely bored with it… maybe I will anyway, who knows. It just seems about right for a mini-challenge.
What this is not about:
- Unrealistic expectations – I like to keep it real. Too many expect monster wins off a small bank on day one, it’s rarely how it works.
- Swinging my dick – Consistency is key, and should be the main aim for any new trader. Excitement is a fools game.
- Showing earnings – The ex-wife and a couple of others would love that I’m sure. Not happening.
Green On, Go!
Not much else to say, other than check back for updates on the blog!
Ohh and a quick snapshot of me emptying my account prior to the start….
Related: Previous 21 Day Challenge
*Disclaimer: While this challenge may show what is possible, it does not mean others will achieve the same results.
You can now see each days challenge posts here: