Taking Candy From A Baby

I was rather annoyed with myself this morning for losing my bottle. I'm not a financial expert by any stretch of the imagination, but when the news broke over the weekend that the US government had arranged to bale out two of it's most troubled financial institutions involved in the 'credit crunch', then even I could see that the stock markets would get a boost from that.

I foolishly forgot all about it though until this morning when BBC Breakfast News mentioned it again and indicated that the markets in the far east had already reacted favourably to the news. So, at 8:30, I logged on to Betfair, opened the FTSE 100 Hourly market for 9:00-10:00 and placed a £25 bet at evens for the FTSE 100 to be up.

There was plenty of money sitting at 1.90 waiting to be backed, just as there was plenty sitting at 2.1 waiting to be laid. I let my money sit there for 15 mins, yet nothing moved, so inextricably, I canceled my bet, went downstairs and made myself a cuppa.

I came back at 9:10 and the odds had steamed in to 1.10! Why oh why did I not grab some of that money sitting at 1.90? It really would have been like taking candy from a baby.

I actually dreamed up today's post title before news of Betfair's latest wizard wheeze became public. I received an email saying I won't be effected. This is of course good news as well as bad. Good because I don't have to pay the additional commission. Bad because it means I'm not as successful on Betfair as I'd like.

I'm not going to say much about these new charges - there's plenty enough to read about the subject on the Internet already. However, I cannot understand what Betfair are doing. Sorry, yes I can. They are doing what any other business would do - maximising their profits through any means they can. To be honest, I do not have a problem with that. What I take issue with is the blatant way in which they are abusing their monopolistic position. They will have upset a large proportion of the customer base. Unfortunately, those customers have little alternative but to accept it due to the lack of competition - and Betfair know it.

20% commission? Nice work if you can get it. A bit like taking candy from a baby.

Anyway, through all of this, I did manage to have a successful day trading, preferring the greyhounds and staying away from the horse markets that I have been struggling with recently. I had a good 3 hour session this morning before the horse racing started when what limited liquidity there is lessens still further. For the rest of the day, I nipped in and out as I felt up to it as I have been suffering from a head cold the past 2 days.

To cut a long story short, I made £53 trading 55 markets. I only had two losses that amounted to £6.45. In both I got caught by a reversal that didn't bounce back. That's the first time I've made this amount in a day for some considerable time. So to say I'm chuffed is an understatement. More of that will do nicely thank you very much.

4 comments:

Chris said...

Really glad to see your doing well on the greyhound markets after your recent struggles in the horse markets. I was wondering how your approaching the greyhounds, im thinking the weight of money approach might be relevant since the liquidity always seems fairly low, anyway I hope your success continues.
Chris

Anthony said...

A good day on the greyhounds my friend. Didn't know it was possible to rack up a good total on those thin markets. Well done.

The final furlong said...

Glad to see you making better progress, i have been trying things on the dogs and just laying the favourite and so far had one loss on 11 bets with a profit of £53.24, the prices do fluctuate quite nicely and so not surprised to see you doing well trading them.

Alistair said...

Hi guys and thanks very much for the comments.

Obviously, I'm delighted with the results I've been getting in the greyhound markets, but it's very early days. I've only been looking at them since last Thursday so I'm keeping my feet very much on the ground.

Chris, at this early stage, I'm not sure if I'm in a position to give advice on, what is essentially a new market for me. However, it is clear that my trading style appears to be more suited to thin markets. I cannot put a finger on any one particular thing that makes these work for me. It just seems to come naturally.

As for WOM, I'm always wary of it, especially in thin markets, as it can very easily reverse big time in the blink of an eye. I do however, follow the graphs to help me judge whether a trend is likely to continue or not.

Sorry for the somewhat vague answer. Perhaps in a month's time, assuming I'm still making decent profits, I'll be able to give you something more definitive.

Alistair