This is a Guest Post by Paul Street an ex-Betfair trader who moved on to pastures new once the premium charge began to eat into his profits. Enjoy!
My time on Betfair was an interesting one.
I was fortunate enough to be there from the early (good) days when it was easy to make money but it soon become much harder and I called it a day several years back apart from the odd dabble on the long term markets.
During my time I did meet many of the early professionals and those who benefited from the early gold rush on Betfair which led me to discovering a few dirty secrets that I am sure the professionals would rather no one knew…
1 – Speed really is the key to easy profits
Do you want to know where the EASY money is to be had on Betfair?
It is by being the first to the market by way of being live at the event and “courtsiding” your way to vast fortunes. In recent years, Courtsiding has been exposed to the world in more detail and the vast sums that are being made by these guys is literally “millions”. The fact that some of those caught up in the courtsiding storm were ex-Betfair employees should tell you a lot. This does not mean it is impossible to profit from the markets long term, these days it just requires match reading and lots of hard work. If you want to skip all that then you should try and become a courtsider.
2 – Big stakes really can make it easier
You sometimes hear some say that if they had a bigger bank then they would do much better at their trading. The usual response is that if you are a loser with a £100 bank then you would be a loser with a £10000 bank too.
However, there is some truth in that having a big bank can make things easier but this applies to pre-event trading more than anything. The fact is if you have a 5 figure bank in a low liquidity market then you are not just participating in the market, you ARE the market. If you have a bank big enough to absorb most of the money in the markets then it makes perfect sense that you would be able to “move” the market in whatever direction you want. For example, if there was money available at a horse from 1.55 to 1.60, I could hoover up all the money on the lay side and then put in a Back order @ 1.61 and the fear that my market move just caused would probably mean I would then get matched by all the smaller fish looking to get out. It can be risky yet but this is how the whales make their money on the pre-event markets on Betfair every day.
3 – Ebooks really CAN help
If you go on forums related to Betfair you will find a few old pros on there who will always say there is “no point” to buying ebooks or courses to learn trading from since they learned all by themselves and surely no other trader would give away their edge.
Well, they are saying this mainly for the reason that they simply HAD to learn by themselves when they first started since there were no good quality courses available at that time. They are also worried about competition. The older pros learned the hard way and so they fear the fact that these days someone can learn what took them a few years in just a few months. No wonder they try and warn the newbies off buying ebooks and tell them to just learn by trial and error. They want them to remain as fish. Sure, there are some bad quality products out there but those that have been around for years have usually stood the test of time for a reason and are worth checking out.
Before I go here is one more.
There ARE loopholes and guaranteed ways to make money on the exchanges through market inefficiencies but they do not last for long. As soon as they are discovered by someone they are rinsed for all they are worth and there is never usually any BIG money to be made from them anyway. They were lots easier to find “back in the day” and these days it is definitely not worth your time trying to look for them. Focus on statistical angles, reading the events in-play and having a genuine edge rather than wasting time trying to find a loophole. Believe me I have been there!