Profitable sports trading requires a combination of skill, knowledge, discipline, trading strategy and a solid trading system.
Do you know why a franchise works so well? Because it already has a profitable system. It gives you steps that you just have to follow.
Systems are critical in our lives. See, for example, the systems of the human body – digestive, respiratory, nervous, etc.? It’s all about systems. They are perfect frameworks that must be respected without deviation. Otherwise, problems arise.
You need to have a solid trading system! It will help you make better decisions. You will have to think like a robot in most situations.
In this lesson, we’ll share some insights so you can develop your own profitable sports trading system.
General tips that can help increase your chances of success
#1. Trading Plan
Start your journey by defining your sports trading goals, your risk tolerance, and your first strategy. Your plan should also include a set of trading rules, such as entry and exit points, stop-loss limits, and position sizing, as you will learn in this lesson.
And stick to your plan. Don’t try something for a short period of time and jump to another cool strategy that you saw on Youtube.
#2. Rule of One
Your system must include the “Rule of One”. One sport, one market, one strategy. Focus only on this strategy until you master it.
Don’t get involved in all sports. Don’t try to alternate the strategies. 100% focus! Study every move until you easily anticipate the next moves in the market.
Once you master one, you can advance. It may take years before you build a strong portfolio.
#3. Trading Schedule
Sports trading is your job. You work from home. But you don’t have a flexible schedule. You must be there when big competitions and matches are live.
So, schedule your day ahead. When it’s time for trading, forget about video games, chit-chat or other distractions.
#4. Constantly improvement
First, you must know the fundamental terms – ticks, dutch, crossover odds, etc.
Then, it is important to have a deep understanding of the markets you are trading in. This includes understanding the factors that affect the markets, such as player and team performance, weather conditions, and any other relevant news or events.
Once you have basic knowledge, make time to constantly improve your trading. Else, you’ll lose your edge. If you don’t increase, you decrease.
#5. Proper Risk Management
Successful traders know how to manage their risks and limit their losses.
You should not risk more than 1-5% from your bankroll on one trade. Use flat stakes. A progressive staking plan is too risky.
This also means using stop-loss, position sizing, and tools to control your exposure to the markets.
#6. Track Performance
Keep detailed records of all your trades. What sport, what match, what strategy, what starting odds, when was the goal, what happened, how odds reacted, what did you do good, what did you do wrong?
Regularly review your trading results and analyze what worked and what didn’t. This will help you refine your strategy and make adjustments as needed.
#7. Respect the system
Stick to your plan. Respect your money management.
If your schedule says it’s time for trading, then it’s time for trading, with no distractions.
If your strategy involves watching the match live, then do that without exceptions.
Conclusion
Overall, profitable sports trading requires patience, discipline, and a willingness to learn and adapt. By developing a solid trading system, you can increase your chances of success over the long term.
Yes, systems are boring and ugly. Maybe that’s why only a few become full-time professional sports traders.
You can be one of them.