You don’t need massive stakes to make a fair profit.
New traders often get tangled up in talk of £1,000+ stakes and big green’s online, although successful trading looks quite different. Consistency and low-risk trading is way more important.
Sure it’s inspirational for those following and great ego-massage to share select wins that are above average, but what use is it really? I’d be far more interested in how and why you can generate a good capital to ratio return. Hence this short video blog…
Low Stakes Mean Low Returns?
There’s a limit to your upside when using reduced stakes, although I’d advise thinking about the potential downside first.
It’s an important question – do the stakes fit?
Have a look at this low-key example in a betting market with poor quality liquidity. By focusing on one undeniable truth, managing stakes and being patient, you can see why it works…
At £10 a click, it’s a fair return when you consider it was a few minutes of trading.
Volatility: Friend or Foe?
Trading a volatile market can be a scary experience when you’re starting out, although it should be viewed as the complete opposite. Volatility is our friend!
Volatility and prices reaching points they shouldn’t provide us with value to exploit as traders. Focus on the area’s where you are comfortable, and at low risk. As mentioned in last weeks blog. If there isn’t a situation like this, just watch – it’s free!
I hope you enjoyed the video and it was a clear example, feel free to let me know if you’d like to see more in the comments below.