What does it mean 'to protect your bank?'

[aubergine]

Hi All

So I've seen lots of bits of advice floating around but people never explain why something is a good bit of advice, which is really the important thing. If you don't know why you should or shouldn't be doing something how can you learn hey?

I have heard people say 'protect your bank'. My guess is this means don't take massive losses when you don't need to, and don't risk too much in one go, but I'm only guessing - any explanation of what this means and why it's a good thing would be appreciated.

Also, why do people say 'don't go in play' - what's wrong with in play? I figured that was the time to make money?

Cheers!

[nigelbleddfa]

Your guesses relating to "protecting your bank" are correct. We all trade in the hope of making money and we cannot do this if we lose our initial stake. Of course, all of us have lost many banks in our time and this has been necessary as part of our learning curve.

I have had my current bank since the beginning of December and this is the longest running bank that I have had. I must be doing something right

The advice about "not going in play "relates to trades involving horse racing. Traders attempt to win money by backing and laying horses as the market changes before the race is run. The markets are at their most volatile in the last ten minutes before the off and this is the time when most traders operate.

The aim is to win money before the race starts. Sometimes, if a trader is facing a loss before the race starts, he is sometimes tempted to allow his bet to "go in play". That means that he does not trade out and accept a loss but, instead, allows the bet to run in the hope that the market will move in his favour and turn his loss into a win. Such a tactic, if employed regularly, is a sure way of achieving big losses. It is, effectively, just gambling.

It is for this reason that the most important rule of trading is never to allow a bet to go in play. You should note that this is wholly different to another type of trading in which the trader deliberately both backs and lays a horse in a race which is being run. If you know how to read a race properly, it is possible to trade and make a profit, however, very few people are blessed with this skill. Even men who, themselves, have been top class jockeys can rarely predict the winner of a race until it nears its end.

[aubergine]

Thanks, I get you. When I've been 'in-play' I've been on football matches, I don't know anything like enough about racing to go near the horses yet.

Just out of interest, if all the traders are going at it before the race, are they not just trading against traders? That's a pretty scary thought..

[nigelbleddfa]

Thanks, I get you. When I've been 'in-play' I've been on football matches, I don't know anything like enough about racing to go near the horses yet.

Just out of interest, if all the traders are going at it before the race, are they not just trading against traders? That's a pretty scary thought..

Nearly all my trading is in play in football matches and i have been lucky tonight. I did the Over 2.5 goals market in the Crystal Palace v West Brom game and was lucky to have two comparatively early goals. I backed at 1.99 and was able to lay at 1.16 giving a profit of 76% of the maximum achievable had there been three goals. Whenever I am able to take over 60%, I always trade out as it is simply not worth risking my stake and already made profit to secure a greater profit.

I started this a few years ago and it was very much easier to trade horses pre race. Traders were the competing with ordinary punters. as time has gone by, more and more traders have become involved and it is much more difficult now. A trader not only has to compete with others like himself, but has to trade, sometimes, against others who have huge banks and who are able to influence the movement of markets. Automated betting is also more common now and bots are everywhere.

The word "scary" is appropriate. My stakes are never more than £200 but it is still possible to have swings in the market which seem to eat your money. It's great when you win, of course. Even more experienced traders are now finding it very challenging to make money this way. I would advise you to try this form of trading using minimal stakes. Then, when you think you know what you are doing, bump up the stake. Now, the nerves will kick in and things you did easily with £2 stakes become much more difficult

I've just about given up this type of trading. It needs a lot of concentration and you must work in an environment where you will not be disturbed. I rarely find myself in this position so cannot do it with the care it deserves.