Wednesday 7th November 2007

The Sports Trader had a good day after trading on 11 UK horse races and 1 Football match with no losing trades.

My first 8 race trades all resulted in small profits. The best result of my day came in the 14:55 at Nottingham where I backed Cuban Missile for £555 @ 1.03 to result in a profit of £83. My next race trade resulted in another small profit.

The last race trade of my day was in the 16:10 at Chepstow and here I laid Charlotte Street for £200 @ 5.84 and then backed back £150 @ 6.09 and a further £9 @ 12.00 to result in a profit of £41.

My race trading had produced a profit of £146.

I had an interesting evening of trading on football as my eldest son Oliver (21) brought his lap top round to my house and wanted me to start teaching him how I trade. As you know, I always advise new traders to start trading on the under 2.5 goals markets, with small stakes and profit targets, to build their confidence and banks. We decided to trade the Barcelona v Rangers match. Oliver had deposited £100 into his account so I advised he used no more than £10 stakes at any time, which is a lot bigger percentage of a bank than I would normally use. I also advised that he should be looking to make 1% of his bank. A 1% profit / day may sound very low, in particular with a small starting bank, but the original £100, as in this case, would grow into £3700 after 1 year and over £140K after 2 years. By then end of this match Oliver had produced a profit of over 3% as he traded in and out of the market a few times riding the steep price declines that happen at particular times of most matches.

I started the match with a back of the unders for £100 @ 2.46 before kick off. I had put up a lay @ 2.30 but by the time the first goal was scored none of my lay had been matched. I therefore backed the unders for £50 @ 4.40 in the reformed market. I then started to lay off @ 3.40 and all the way down to 2.66. I partially greened up with a lay @ 1.80 for £20. In the final minute of injury time I backed the unders again for £520 @ 1.15 and laid off within 20 seconds @ 1.06. This had resulted in a profit of £82.

My day had finished with a total profit of £228.

Comments

[keane from fareast]

hi ray,

u did mention with 100pound & winning 1%/day from bank roll will hit 3,700 after a year... still don't understand how u can reach 3,700??

can u explain more.

tkz

keane from fareast

[Ray]

Hi Keane,

I have sent you an email with all the workings of how to start with £100 and by adding 1% profit / day, you will end a year with £3700.

It is just a matter of compound interest and the way that if you always reinvest your interest/profits the amount will grow expotentially.

Ray

[Jon]

Hi Ray,

Just a quick question about percentage of bank to be used, when you started with £200 how aggresive where you in your staking? did you start using 1% with that size of bank, or did you go all in to build up funds? ive only a small bank and using 1% wouldnt yeild much of a return for me.

Cheers
Jon

[Ray]

Hi Jon,

The appropriate phrase to use would be 'Don't do as I do, do as I say'. When I started I tried to make £25 / day and in the most part I managed but it was a bumpy ride and as you will have seen in an earlier post I had built my bank up to £3.5K and went all the way back to £300.

One of the best lessons I have learnt is to go for small percentage gains as they are easier to achieve and you will not feel the need to chase big losses. You will also build your confidence much quicker.

If you stick to 1% on a starting bank of £100 you will still be a millionaire within 3 years. Good Luck I hope you get there.

Ray

[Jon]

Hi Ray,

Thanks for your response. My staking is an area i definately need to improve on, im happy with my strategy (2.5 goals and test cricket)but i feel i let myself down over staking and im always interested in peoples views on the subject.
Anyway i hope your son gets to grip with his trading and becomes a chip off the old block.

Cheers
Jon