Virgin Galactic The Sultan posted an interesting blog over at Centre Court Trading this week, with the general gist being that after a challenging month, some of the members to his new Tennis Betting Trading Academy were starting to get restless from what they perceived as a lack of progress.
In particular, this bit caught my attention… “The general theme I find (and I’m seeing it with some academy members), is that aspiring traders expect that the pros all make similar amounts of profit every month and it never deviates much.” After being on Twitter for a while, I’m now fully aware from speaking with others that there are many ways to skin a cat.
Each of us handles risk in a different way and it’s because of this we end up with different variances to our results. But is it okay for aspiring traders to have the goal of being able to rake in similar, consistent profits each month? Or is this an unrealistic objective? Does the trading style we choose to adopt and our appetite for risk have the biggest bearing on what we get out?
This got me thinking back to when I started my journey. I could see the opportunity but realised that for me it would need to be a long and steady process. Why long and steady? Well I pretty much had nothing – no assets and standard liabilities like a car and a mortgage – so armed only with my investment fund of £250 I knew I’d have to do things slowly and manage things closely. My plan would have to be to accumulate wins (whilst trying to avoid big losses) and re-invest in my trading bank as much as possible so that the sums I could ‘play’ with would increase over time.
If this happened I’d be able to keep risk levels the same but hopefully at the same time my profits would go up as my stake levels increased. So how did things pan out? I’m not at the end of my journey just yet but were these expectations realistic? Was I right about it being a long process? If I look at how my monthly profits have grown over the last 7 years it paints a picture:
Monthly Profits - End Sep 2013 So you can see that making thousands of pounds in profit each month isn’t a realistic goal from the start. At least it wasn’t in my case. Instead it’s been a process of win, win, lose and then reinvest. Over and over and over again. What is also apparent, is that since I went full-time (the red columns) I’ve been able to focus my energy and on the whole it’s paid off with better results (even if I take into account that I no longer receive the salary from my old job.)
There’s no doubt in my mind that a very crucial part of this plan which can’t be overlooked is the re-investment of my winnings. Until I built up a pot of £10,000 I didn’t take anything out at all, every penny went back and that really helped accelerate my returns. To illustrate how important this has been, here’s how my trading bank has grown gradually over time: Trading Bank
End Sep 2013 So why am I sharing this all now?
Simply because I hope it helps anyone starting out. Trading on Betfair offers a great opportunity to make some money, especially as you can start on a part-time basis, BUT, if you manage your money correctly things can really grow. You just need learn to be patient and try not to get ahead of yourself, which admittedly at times can be difficult. Just concentrate on doing things one step at a time. “The good news is that most people in life quit. So, staying in the game puts you light years ahead of others” - Robert Kiyosaki