Money Management

I have spent the last few days scouring blogs and betting forums to try and pick up some tips on how to manage my betting bank.

Talk about opening your eyes. My previous attempts at trading have been laughably naive.

I regularly risked over 50% of my betting bank on any given event and fell into every trap available for the novice trader.

This strategy (or lack of it)led to some decent wins, but also regular visits to my current account as my betting bank ran dry.

Everyone has their own threshold to risk, and in the past mine has been gung-ho to say the least.Things have to change this time around.

They say the quickest route to success is to model someone who has been successful in your field, so my own plan is unashamedly based on the advice given on the excellent Betfair Trader website (see links)

My starting bank of £300 may be modest for a lot of heavy hitters but is an amount I can afford to risk without impacting my life in any major way.

The plan is to limit myself to a maximum liabilty of 10% of my starting bank per trading event.

If any profits accrue, over and above the £300, I will take 50% of the profit out of my account and let the remaining 50% swell my betting bank.

At this stage I don't plan to top up my betting bank if I hit a losing streak.

Clearly this staking plan is not going to give me overnight success, but hopefully a steady stream of small profits will see myself sunning myself in a more exotic location than Bournemouth for my 2012 summer holidays