Aug
Money Management on Betfair From a New Sports Traders Perspective
As a new sports trader, I thought I would share my experiences with regards money management. At the start of this year (2011) I continued my Betfair journey with renewed effort and energy. On January 1st I had a Betfair balance of £12.14, I could only place trades (bets) of less than £2(good job for the geeks toy), I traded by laying first up to the value of my whole balance and then backed once the odds had moved up, making 6 or 7p per race. Slowly but surely my balance has increased and now it is over £60 just three weeks later and now I trade with a 10% stake of my bank, I am confident and able to trade at odds of up to 10.0.
Going forward from this point I will continue staking at the same level until I reach £100 and future staking will go as follows-
Bank size Stake
Up to £100 10%
Up to £200 £10
Up to £500 5%
Up to £1250 £25
Up to £2500 2%
Up to £5000 2%
Up to £10000 £100
Up to £25000 1%
I have put together this money management staking plan to maximise the profit in the early days and to reduce the risk as the bank grows in size. I don’t think you would be being fair on yourself if you compounded your Betfair returns each day without ever taking a penny out, therefore- I will soon be withdrawing a portion of my my profits each day, as a reward for the effort that a sports trader has to put in. From the end of Feb 2011 I will I have projected my trading bank to be approximately at £250. I have worked this out by aiming to increase my balance by 5% a day in Jan and 4% a day in Feb, although I have exceeded this figure on most days up to now and hope to in the future.
To recap from 1st March I will be aiming to earn 4% a day profit, withdrawing 3% and compounding 1% for interest. At 1% a day increase it will take approximately 73 days to double my bankroll and this is how I will continue for the remainder of 2011.
Good luck sports traders
Keep it green