That lesson is called the "value of money"!
It may sound obvious to ask people to consider the value of their cash, but I found that this was one of the concepts which I really struggled to grasp. I am pretty sure I’m not the only one, so I write in the hope that this provokes thought rather than preaches, and assists rather than offends. If it helps just one person become a better trader then this article will have been worth writing.
What better way to kick off than with a personal truth?
Early on in my Goal Profits journey, I was trading a correct score match. I had £80 of green on a target score and decided to lay the whole thing off in anticipation of a late goal and an absolute monster profit. After all, it was never really my money, I started the trade at point zero, so I was never actually going to lose anything… right?
Well actually, wrong! As soon as that screen goes green, it is your profit, heading for your trading bank. Therefore, always treat it as such.
As bettors and traders, we always speculate to accumulate – that is betting in a nutshell. However, there is a huge difference between speculating to accumulate, and throwing your hard earned profit back in to a market aimlessly, praying for a big pay day.
You won’t be surprised to hear that there were no more goals and I finished at scratch. Make no mistake, I had just lost £80. I had taken four crisp new £20 notes out of my wallet and flushed them down the toilet. Think about that for a minute.
These days, before I place any bet I consider the value of money. When looking at numbers on a screen, humans have a tendency to disassociate, particularly with the value of money: “What’s a tenner when my bank is a grand?” Well, actually it’s 1% of your bank and you need to treat it with respect and consideration.
My first golden rule when remembering the value of money is never to throw yourself back in to a market through greed, like I did on my correct score trade. This may sound simple and obvious, but let me clarify exactly what I mean here:
By all means, if the fantastic Team Statistics point to a late goal and you have considered the chance of a late goal against the available odds and determined value, then make a reasoned decision and place a reasonable stake.
But if you just fancy a late one, don’t splurge your money on a punt!
Another great tip – and I’m afraid I don’t know who to offer credit to here although I heard it from another Goal Profits member – is to actually have a £10 and £20 note out on the table in front of you whenever you bet or trade football.
Every time you place a stake, just take a moment to examine that note. If someone stood in front of you offering you what Betfair are offering, would you hand that note over? By examining the physical cash, your mind can associate that cold and disassociated figure on your screen with its actual value. It is a remarkably powerful tool and one I always utilise.
My final value of money lesson is, I hope, just as eye-opening.
Now this may be presumptuous of me, but I do believe that many members, if asked how they would feel about making £10 at the end of a busy Saturday, might be a touch disappointed. A handful might even say it would not be worth the effort. Some may even take the drastic step of cancelling their membership!
It seems a reasonable next step to say that if we polled all the members as to whether, using the huge resources available at Goal Profits they would be able to make £10 a day most days, I would imagine many would say that they could.
I’m going to take further still and suggest just £10 every three days. Surely the majority feel they could make £10 every three days consistently with the statistics, strategies and value at our fingertips?
Well, as always with this game, we should be looking long-term. So that’s exactly what we are going to do.
Starting with a £1,000 bank, making £10 (or 1%) every three days would leave your closing bank at the end of Year One at £2216.67.
If you could then make £20 (1% of your new bank rounded down to the nearest £1000) every three days, your closing bank at Year Two would be £4650.
- Year Three would be £9,516.67.
- Year Four is £20,466.67.
- Year Five is £44,800.
Now, we all know it isn’t quite as simple as that, but all of a sudden that tenner after a busy Saturday isn’t looking so bad after all!
Goal Profits member: Chris