31st December 2011, 12:59 PM
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Member
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Join Date: Jan 1970
Posts: 4,432
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Thanks for posting this Schmile.
Been a pretty bad year for me allround, so am looking forward to what can only be a better year.
I found these trading tips quite pertinent to another angle I've been using successfully.
Trading in running on UK Hurdles and Steeples only.
Using small stakes to make lots of little trades with a trailing stop loss.
As opposed to the fast picture players and live viewers, I'm trading only on movement, rather than what I think a horse will do or not do.
The hiccup of course is a fallen horse, but with lots of little trades rather than two or three big trades, the damage is tiny by comparison.
There is also (unless a rider is unseated or a faller) plenty of time to take positions over and over again.
*I would never try this on a flat race.
So here are my variations in relation to in running trading:
Principle No.1: Always Invest with a Margin of Safety
Always have a stop loss, do not rely on your own decisions, it's too easy to hope the odds will come back in your favour. Most of the time it won't.
Use small stakes to make numerous trades, rather than exposing one lump sum.
It will happen that a horse will fall and you can end up losing the lot.
It will also happen when you least expect it.
Principle No.2: Expect Volatility and Profit from It
Prices never go straight up or straight down.
They trend up or trend down.
Set a limit to how far you let a loss go and set it as a stop loss, regardless of how things "look".
Principle No.3: Know What Kind of Investor You Are
Know your weaknesses (speaking for myself), if greed is a problem, lock in a profit and move to the next race.
Never mix trading with backing or laying, or do multiple trades at once without first closing all open trades.
Too easy to get mixed up when you're running out of time in the flurry.
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