Originally Posted by Bhagwan

OK , we have read about the things we should not do.

One may notice that the folk who write these articles originally , don't seem to offer how it should be done.

Its like reading an article on what Psychologist think is abnormal but never write an article on what is normal.

Cheers.

Originally Posted by crash

A bit harsh there Bhagwan. A simple check [ 'Marcus Padley-The Melb. Age']
to see if he or does or doesn't give some good advice to winning [he can't do it for us though] wouldn't have been hard [?]



What I originally put up here was not the whole article, just the common traps. If you want the whole article or many others by Marcus Padley who writes weekly [mostly to do with share trading]. http://www.theage.com.au/execute_se...com.au&x=15&y=8

Here is some positive advice from the same guy regarding things we should be doing to improve our lot. Equally relevant for a good trader or punter, laying or betting:

Your 'part 11' Maurice :-)
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Marcus Padley
June 6, 2009

"PUT a bet on through a bookie and the reality is, if you win, they lose and, more importantly, if you lose, they win.

Work that out and you will realize that behind that flashy smile and flirtily comment the bottom line is that they want you to lose. It is in their interests that their customers lose. An ethic that would doom most businesses to the graveyard, yet after centuries of losing customers money, the bookies are still in business.

They stay in business because everyone loves to punt, needs to punt even. They stay in business because they provide an "essential service". But if they didn't make money, they wouldn't exist. So, how do they make money? Why do they make money? Learn that and maybe you too can win.

Well, it's simple. Two things.

The first is risk management. Not losing money. Bookies succeed because they put structure around risk. They manage risk. It is the same in the sharemarket with the new breed of sharemarket bookie, the contract for difference (CFD) providers. They too take the opposite side of your trade.

They will tell you that controlling risk means knowing when to hedge, who to hedge. You probably have the idea they hedge everything, but they don't. It would cost too much. Instead they simply identify people who have a habit of winning and when a winner takes a position, they hedge the risk and move the price. With CFD providers it means they differentiate between the good traders and the bad. That's why they ring you up, to suss you out. Otherwise, they just watch what you do. The winners, they hedge. The losers, they don't.

Which brings up the second reason they make money. By taking bets off losers. Off Joe Public. Off the majority. Off the people who don't take their betting seriously. People who fly by the seat of their pants. People who "love having a punt". "Love to Punt" means "Love to Lose". This is where the real money is.

There's no need to hedge losers, all they need to do is to encourage loser activity with a host of bait. Like glamorising the life of a trader - telling them how sophisticated they are. By trumpeting winners with hindsight examples, offering sexy software, free. And, most importantly of all, by making it really easy and terribly tempting to just "click and trade" and place that bet.

Amazingly enough, when it comes to making money as a do-it-yourself trader it is not the product you are up against. On the contrary; CFDs are a fantastic product for winners. What you are up against is something far more dangerous: it is you, with your feeble mind that is in no position from a standing start to be trading highly leveraged products against professionals.

So, what do you do? How do you narrow your odds?

Well, it's what you don't do first. You don't trade just because you can. Just because you can trade shares or CFDs from your kitchen doesn't mean you should. What you do do is educate yourself about what it really means to be a "trader".

Ultimately trading is a business activity. It is not glamorous or exciting.

It is methodical and routine.

It is boring. Half the game is handling risk, 40 per cent is discipline, 9 per cent is vigilance and the rest is picking winners. You can't do it part-time.

"Trader" is a title you will only gain through many losses and much experience; through constant effort and an appetite for education. As you elevate yourself from beginner to "trader" you have to try not to get wiped out. Something few achieve. That means start small, start on paper even and, meanwhile, get educated. It means doing what the professionals do and learn how to put structure around risk.

Trading is many great things: interesting, fulfilling and challenging. But it is not punting and it's not sexy or glamorous. It is business. Learn how to do it. Don't just do it".

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Crash: Plenty of good advice there I reckon.

Originally Posted by Mark

Everyone will get something different out of this article, but the most important for me was this.....The first is risk management. Not losing money. Bookies succeed because they put structure around risk. They manage risk.

Originally Posted by crash

A classical example of 'loss aversion' today. Zoe picks YASEYNITALL 27.30w r5 [?] at Kyneton [likes Linda Meech]. Halves her usual win bet because of the odds. Does the same on Sunday for a $21w and last week again on a $54 winner! I seem to be having a run of outs.