Knowing how much to trade with on Betfair is always a tricky subject. If you have a small bank to trade with then your profits will not be very significant but at least you are not risking too much. Whereas if you want to make significant profits then you need a bigger bank but not everyone is comfortable with risking bigger money.
So how do you know just how much is the right amount to commit to your Betfair bank?
Well, the first thing you should ask yourself is… how much can you afford to lose? This answer will be different for everyone and even when you think about it you won’t know the real answer.
Here are signs that you might actually be playing with stakes that are too big for you:
1 – You over-think your decisions
When trading you should never usually have to over-think your decisions. You should just spot an opportunity and put your money into the market. If you have to stop and think about just how much you want to put in then chances are you are playing with stakes that are too big for you. When you have to think twice about an opportunity then there is a good chance that opportunity can pass you by. I can relate to my very early days and having a bank of a few hundred pounds. I was trading comfortably putting £10 into the market every time but one weekend when I had the bright idea of increasing it to £20 every time I suddenly began to think twice about everything. Decision I would make easily at £10 suddenly became big debates at £20. Seems funny now but looking back now I was staking more then I was comfortable with at that time. I am sure many reading this can relate to this at some point.
2 – You get an uncomfortable gut feeling when you see the “red” number on the screen
Back in my early days I was not very professional at all, mainly because I had little guidance. There was a point when I began trading with £100 stakes way ahead of when I should have and I will never forget it. Mainly because as soon as I put the money into the market I felt very uneasy about it all. I would put that £100 in and then see the -£100 in red on the Betfair screen and feel a bit nervous about it all. In those days, £100 was a lot of money for me and I would begin to think about other things that could have been bought with that money which is not the right way of thinking at all. I would even feel my hand sweating as I touched the mouse and then when I finally got into a winning position I would feel my heart beating hard as I locked in the cash much earlier then I should have. Clearly, I was trading with a bank that was way out of my depth. The amount you put into the market should be irrelevant to you if you lose it all.
3 – You consider withdrawing some money to pay for a bill or other expense
I am happy to say I never got into this position myself but I do shake my head when I hear it mentioned to me. I often read about someone who had to withdraw a bit of cash from their Betfair bank in order to pay for something like electricity. This is a big red flag and shows you are trading with money you simply can not afford and you need to stop or scale down significantly. As mentioned earlier, the money you put into Betfair should be “disposable” and considered as gone. It is not a bank account after all!
When you trade on Betfair you need a bank which does not make you think about the “numbers”. You need to be trading with amounts that you can comfortably put into the market without thought and, if the worst happens and you lose it all you need to be able to shrug or even laugh it off. That is when you trading with the right amount and this amount will obviously grow as your bank and experience grows.