Swing Trading on Betfair Using Geeks Toy Trading Software...

Catching a substantial swing in price ahead, of time isn't the easiest thing to do...

However the potential to bag a hefty profit is significantly larger when swing trading.

In this article I'm gonna take a little look at swing trading on Betfair with the Geeks Toy.

There are many things that can cause a swing in price. However in most cases it comes down to three main areas. Now we'll take a look at each one of those areas one by one.

Breaks In Resistance:

Within any one betting market, there are several points of support and resistance. How strong a support and resistance point is depends on a whole host of other factors.

However, it's plain to see when a resistance point is broken within any one betting market - it then becomes an alternate point of support.

When you think about it logically, chances are there's a whole host of other traders that believe that this resistance point would hold. Although now, being on the negative side of their position, they need to exit, reinforcing a point of support.

The longer this goes on for, the more the break in resistance is reinforced, giving the market time to continue in one direction, thus producing a longer term swing in price.

Even more so, when you consider the initial gamble may still be unfolding.

Significant Change:

It stands to reason. Every time there is change, there is an opportunity to make some money on the betting exchanges, particularly whilst swing trading.

Regardless of sport, be it football, tennis or horse-racing, the principles are the same. Those who react first are often rewarded the most. But only if they're willing to ride out the swing.

The point to make here is the bigger the change is, the more likely a swing is to occur.

So for example if a horse throws a jockey off down at the starting stalls with two minutes before the start of the race, there's a significantly higher chance of a swing in price on Betfair than there would be if the horse had simply reared up and been a little bit jittery.

If we were to relate that to football, there's every chance there will be a swing in price if a star player is injured. However if they were to break their leg and be removed from the pitch altogether, the odds will have to react.

Just think about how big the opportunity is, and then worry about reacting quickly. Although it's important to say you don't have to be the first one to the market, as with swings in price, catching the middle two-thirds is usually more than enough.

Lack Of Information:

It's no secret that this is an all-time favorite of mine...

When there is a lack of information in any betting market, regardless of sport, there is additional opportunity for a swing in price.

Why?

Because there is less resistance within the market. You'll find less people are willing to take on a price in a situation where there is significantly less information on offer. Quite obviously that would be a foolish thing to do.

In one sense it's the complete opposite end of the spectrum to a scalping trading style, where we want lots of information, the market to be solid (with a higher turnover).

When you think about it like this it becomes a lot easier to sift out potential swing trading opportunities throughout the day.

Only once then you have identified those situations where you can reliably pick a swing trading opportunity, can you begin to scale up your stake in, increasing the bottom line.

Related: Laying the Draw on the GeeksToy Blog