Sunday, 25 September 2011

Turning Pro

"Amateurs look for challenges; professionals look for easy trades. Losers get high from the action; the pros look for the best odds."

Dr Alexander Elder from 'Come into my Trading Room'

I really liked this quote from what is an excellent book. I felt that it summed up what I'd learnt recently - that the best traders are trading the market (looking for the best odds) and not the match. Although I do think sports are different to the financials in one respect, in that watching a game and being able to read it can give you an instant edge which will present value that isn't necessarily noticeable from just looking at the prices.

That said, I'm now firmly of the belief that you must be able to read the market and spot value in tandem with having a strong, in-depth knowledge of the sport. That might seem obvious to many of you reading this but I can guarantee you, it isn't obvious to most people involved in the market and isn't something that most traders have, whether they know this or not. I'm realising now that this is a blessing because it enables me to make the most of the over-reactions that the majority are making by taking good prices.

The couple of days since my perfect 24 hours have been a little more in and out. This is mostly because I've still been ironing out a few things in the strategy that I was unsure about. As such, I've made frustrating mistakes but ones which will not be made again. I have to remind myself that I'm still changing over from a strategy that I've been using for over a year that is very different from the approach I have now. Exit and entry points have been revamped, as have redding-up and greening-up percentages and stake sizes. I've been tweaking and experimenting this week but I now have everything in place so that I know 100% what I'm going to do in any given situation.

I now have a big week ahead of me as I look to see whether the new approach will produce a solid, consistent week of results. I have been given a new lease of life in the last 2 weeks, at a time when I felt it was almost over for me. But I'm looking at the markets in a totally new light now and spotting so many more openings and so much more potential for my trading to develop onto another level. It's time for me to step up and become a true professional.

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