Today we’re talking about edges. This is important because the ‘edge’ is the thing that will allow you to become consistently profitable in the markets.
Firstly, What is an ‘Edge’ and How Do You Discover Your Own?
This question dumbfounded me at the start. I googled it so many times to find out what this mysterious ‘edge’ was in sports trading and how I could develop my own.
Put simply, your ‘edge’ is a combination of factors which give you a consistent advantage over the sports trading markets.
If this combination of factors stand the test of time and sees you churning out consistently profitable weeks and months then you can say you have discovered your edge.
Isolated Examples of Edges
Example of an Edge Through Use of a Resource (TV Pictures):
Situation: You have access to the TV pictures for a race you’re looking to potentially trade and see that one horse is playing up badly and causing a bit of trouble for its jockey. You know after watching the ‘Misbehaving Horse, Keen to Post’ video in the ‘Market Awareness: Situations and Market Dynamics’ module in Caan Berry’s Advanced Video Pack that this will concern anyone in the market who is looking to back the horse to win the race and as such it is therefore likely to drift in price.
Action: You lay the horse and hedge up for a profit after it drifts for a few ticks.
Example of an Edge Through a Learned Trading Skill (Ability to Stop Yourself from Overtrading):
Situation: You’ve done your research on the Over/Under 2.5 Goals market on this weekend’s football. You find 9 potential trades which fit your criteria. However, you decide to trade only the very best 5 of these as you’ve realised as a trader that quality of trades is more important than quantity of trades.
Action: You only focus on the 5 best potential trades and come away happy with your weekend’s work.
Example of an Edge Through Using a Sports Trading Tool (Goal Profits):
Situation: You’ve done your research on potential Lay the Draw trades in this weekend’s upcoming football games using the Team Stats Software on Goal Profits Football Trading Community. You’ve found 4 potentially excellent opportunities due to the ‘Teams Likely to go 2 Goals Ahead’ criteria filter that the Goal Profits’ Team Stats software has provided.
Action: You lay the draw in the 4 games that you have researched and hedge up for a profit if/when the odds have gone in your favour.
A Trader’s Edge Is Not One Single, Magical Thing
- Having utilised and educated themselves through the best learning resources and tools
- Use of Betfair Trading software
- Using a tool, or tools, to help inform their trading decisions
- Doing in-depth research of potential trades
- Implementing a staking plan
- Showing restraint and having the ability to not overtrade
- Shown consistent profitability over a large number of trades