The Psychological Pitfall of Reading Adam Heathcote’s Blog

Horse Racing Trading Psychology

Adam Heathcote came to prominence in 2008 when he started a blog challenge to make £150,000 profit in just one year from trading the Betfair pre-race Horse Racing markets. Not only did he achieve it but he smashed it so much he had to raise his goal… twice! Firstly to £250,000 and then finally £350,000.

As you can imagine, Adam caused quite a stir within the sports trading community as everyone wanted to know how a 24-year old could become such an expert and make profits that some professionals can only dream of.

Here is Adam’s screenshotted profit and loss overview. It is quite staggering how quickly he was able to scale up.

Adam Heathcote's Profit and Loss Record (Source- Bet Angel forum)
Adam Heathcote's Profit and Loss Record (Source- Bet Angel forum)

Adam’s Blog

You can find Adam Heathcote’s blog here: http://adamheathcote.blogspot.co.uk/. The link provided even takes you to the first page so you can read through it from the beginning – it really is a fascinating read. Whilst Adam doesn’t give too much of his knowledge away he does reveal some titbits of information that are useful for beginners to learn.

Adam had already made a substantial amount from trading Betfair before he started the blog and you must keep it in perspective that a lot of hard work in learning trading is not talked about in his posts. Plus, I’d hazard a guess that his degree in Computer Science may have laid a lot of the groundwork for his analytical thinking which undoubtedly would have helped him grasp trading more easily than your average person. His first foray into trading was in 2007 where he attended a Peter Webb course.

Many people questioned whether Adam Heathcote was real, or whether he was a marketing ploy by Bet Angel – Peter Webb’s Betfair trading software company. I very much believe Adam and his results are real and believe the alternative claims were just jealousy on many people’s part. If you want proof that Adam Heathcote exists he appears in a video for one of his friend’s series called ‘Blag A Million’.

In the video, Adam makes £1,225 in the space of an afternoon. It all sounds so great – doesn’t it? Cue the dreams of you making that much money when you get good enough at trading.

I hate to rain on anyone’s parade, but there are many pitfalls to this way of thinking – and reading the Adam Heathcote blog can do more harm than good for beginners to this game.

The Psychological Pitfall for Newbie Traders Who Read Adam Heathcote’s Blog

A lot of traders read Adam’s blog at the start of their journey and get so excited by it that they set themselves a challenge.

I did. And I’ll freely admit that I failed.

What I didn’t know at the time was the psychological edge a Betfair trader of this level needed. I fooled myself into thinking that I could learn sports trading within 9-12 months and be proficient to the point where I was making astronomical profits. Why am I telling you this? Quite simply I don’t want you to make the same mistake yourself.

For most people, giving yourself a financial target is a foolish idea for a couple of reasons:

  • It puts pressure on you from the very beginning

The last thing you need is pressure when trading as you’ll make all the wrong decisions

  • It makes you think of your trading goals in financial gains

When you first start out trading, your goal – although it sounds rather counter intuitive – should not be about making money. It should be about learning the dynamics of the markets, ironing out your trading processes, getting your mentality right…and then focusing on NOT losing money. It was a lesson I had to learn the hard way – but you should always play the defensive game first when it comes to trading.

Adam Heathcote’s blog is meant to be inspirational, but it is not realistic – especially for those just starting out on their trading journey. Do not take it as standard that this is the level many people reach after a few years of learning the markets. Adam was an exceptional case by all standards.

Read the blog post: Trading Psychology: 5 of the Best Books for the 5 best books that help every trader overcome the psychological challenges that come with mastering trading. Mark Douglas’ Trading in the Zone is a must.

Trading in the Zone - Mark Douglas
Trading in the Zone - Mark Douglas

So, what happened to Adam Heathcote after he hit £350,000?

Rather surprisingly, Adam gave up trading after a few years. From reading his blog and some other sources I think Adam had a larger goal in mind when he started making so much money and that was to start his own business. He also seemed to get annoyed at the unfair Premium Charge that Betfair introduced in 2009 which would have been taking a large chunk of his profits. His business is a health and wellbeing holiday company called Health and Fitness Travel which you can check out here http://www.healthandfitnesstravel.com.

Links:

Adam Heathcote’s Blog: http://adamheathcote.blogspot.co.uk/

Adam Heathcote’s Business: http://www.healthandfitnesstravel.com

Betfair Trading Software

Betfair Trading Software

Matched Bettor of 3+ years. Loves helping others find their path to what they really want to do in life. Started my Sports and Cryptocurrency Trading journey in June 2016. Bitcoiner.
  • Lewis says:

    Thanks for that. I’ve been learning horse scalping for 12 months and still consider myself a beginner. The bit about avoiding losses is paramount and the one I’m still working on, particularly when a sudden ‘spike’ breaks through my trades. Regards.

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