Betfair Trading: Three Golden Rules To Developing A Successful System

Over the last few years, many people have tried to make profits by trading on the sports betting exchanges, primarily Betfair and Betdaq. However, only a small percentage of traders on those sites ever make a long term profit. The rest fail - they either quit, or continue losing money time and time again.

The main reason that people fail is that they either do not have a trading system to follow, or the system they do follow does not generate long term profits. In this article, I will give you three golden rules that you need to follow in order to develop a Betfair trading system that works.

Rule 1: Specialise

You've probably heard the saying, "Jack of all trades, and master of none." This applies to your trading business as well. A common mistake made by new traders is to try to do too many things at once.

When it comes to developing your trading business, do not be tempted to spread yourself too thinly. In my experience it pays to specialize and find yourself a niche. It's much better to follow a helpful or strategies well, and then keep on doing them and churning out profits, than it is to do many things badly.

If you're designing a trading system for yourself, just choose one or two markets which you want to specialize in, and get to know them inside out. Before long you'll know exactly how your market markets work, and how to trade them for maximum profits.

Rule 2: Keep it simple

If you study the online betting marketplace, you will see lots of people selling all manner of weird and wonderful trading methods and systems. It's amazing how some people like to over complicate things.

Some people swear by their systems like "buy the US dollar when line 1 is above line 2 but below line 3, and only when it's a full moon and the weather forecast is good" - it looks as though the more rules they have to follow , the more they feel a system or strategy is worth.

My rule is - keep it simple. Have simple, easy to follow trading methods that you can apply quickly and easily whenever you like, and then spend the rest of your time worrying about something more interesting. Life does not need to be complicated, and if you try to over complicate things, you are more likely to make mistakes.

Rule 3: Pass the test of time

Just because something happens once, does not need to mean it will happen again. Personally I want to see evidence that something has happened again and again in order for me to be confident that it will keep happening in the future.

In other words, I want to make sure the trading methods I use are not just a flash in the pan because that is no good to me - I need to know they're going to stand the test of time.

So if your trading business is going to succeed, you need to make sure that the methods you're using will keep on making you a regular profit over the long term.

If you've come up with your own idea for a trading method, you must back test it thoroughly to make sure it would have made regular profits in the past, and then paper test it for a suitable period of time to make sure it will continue to profit in the future.

Maybe that sounds like too much hard work, but that's what separates successful traders from all those who try and fail. If you do not put in the work at first, you do not have a system to follow, and that means you will inevitably fail.

Follow these three rules and you have a good chance of developing a profitable system that you can rely upon to make you money for many years to come.

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Source by Martin H Davidson