When you are hunting some fowl, you’re pretty much going to be using a rifle, right? It is more precise, hits hard, but the problem is that it only hits one target at a time. To add to that, you can potentially miss the target when you fire the gun; leaving you with no room for error should you miss the mark.
That is why in theory, a shotgun is best suited for that occasion. Yes, it doesn’t have the same range to that of the rifle, but each shot hits multiple points. The same principle can be applied to Betfair trading as well. Most people make the mistake of placing only a single bet or one entry point and when they lose, they cry and sulk about it.
The better approach would be to make sure that you have multiple entries so that any point, you can exit with some amount of money in your coffers. What I typically see when I look at other Betfair traders is that they just try to average down on their initial trade. This is the idea of where to invest money (or buying a stock) and then buying some more when the price goes down making the price of the bet even lower than what you’ve wanted initially.
They do this because they do not follow a solid plan; they just go to war without ever applying any strategy whatsoever. The result? They die, or in this case, they lose their capital. When you trade on Betfair, you have to have the mindset that you can potentially lose on every bet. Armed with this thinking before placing any bet, you’re already thinking of ways on how you can mitigate the damage on your capital.
This is a much safer approach because having this mindset will give you the willingness to hedge your assets beforehand rather than panicking after the outcome has set (hence, why people average down). The best way to trade on Betfair is that you do not use the rifle approach as I’ve said earlier. You want to use the shotgun approach where you put multiple entries with a pre-
determined size so that in the event that you do lose, you’re only going to lose a portion of your assets.
Averaging down, although it is a way to somehow mitigate your losses, is not a good way to safeguard what you have because you could potentially lose a lot. Market prices are never static and they move depending on the ebb and flow of the traders that are involved in the exchange. You have to understand that yes, we humans have the propensity to become greedy, but we also invariably do not want our money to just evaporate in front of your eyes.
As parting words, I just want to say that you need to have a humble attitude when trading if you want to earn more profits in this platform. Trade as many as you can with pre-determined sizes.