Common mistakes made by new traders on betting exchanges
Nothing denying that ability to book huge profits can be overwhelmingly appealing to new traders, they must tread cautiously when starting out in the trading world. They should be aware that betting exchanges are the playgrounds of some of the sharpest minds in the betting business, traders having decades of experience, people having much better understanding of the highs and lows of not just the contests, but also the markets themselves. It’s pretty easy for traders to commit strategy and judgement-related errors when starting out in the trading world. You can’t expect yourself to turn into a professional and profitable betting exchange trader overnight if you’ve placed only a handful of pre-match bets at some online casino.
Let’s go over some of the common mistakes you’ll see newbie traders making:
Failing to react in time
One very common mistake that new traders make is that they don’t react during the sudden market movements. If you’re backing an early goal from a particular team, but the opposing team scores first, it’s only natural that the odds will suddenly shift against you. You must react accordingly and quickly in such circumstances.
The same holds true when the tide isn’t going in your favour. If you strongly expect a team to score a goal in the first few minutes of a match, and it indeed does, you must book your profit instantly, and reassess your strategy for the remaining part of the match. This is the reason why seasoned traders are highly successful on betting exchanges. They’re well aware of the importance of making instant moves during sudden market movements. You’ll rarely catch them off-guard.
Having selective memory
Another commonly made mistake by both sports bettors who bet on platforms like Bet365, and traders is that they operate with selective memory while betting and devising strategies. This can be an even bigger concern considering the hectic and dynamic nature of in-play sports trading. It becomes imperative for you to continuously take notes, according every trade that you make and the different price points.
Why? Simply because if you fail to do so, you’ll only retain those big moments and act solely based on them.
Nothing denying that it’s extremely painful to trade out of a losing position, gobbling up a major loss. However, if you don’t make a note of it, it’s highly likely that you’ll only remember those instances when you got out on losing positions after which things had somehow turned in your favour, with no active role played by you.
There will be no learning involved.
You’ll instantly recall the accompanying frustration, but forget all those times when you had to trade out of losing positions, but managed to save the day by limiting your liability in time. Hence, always remember to take notes during your trading routines.
Indulging in gambling
The third common mistake that new traders make on betting exchanges is that they approach their trading activity with a gambling mindset. It’s extremely important to keep in mind, and always remember that you’re basically trading a market and not indulging in gambling. You are expected to react only at times when there is an opportunity to register profit, or an opportunity to minimise your losses. A major reason why many new traders don’t last very long on betting exchanges is because they continue holding on to certain positions for extended periods of time.
You must remember to make the trade and book your profit whenever things go even slightly in your favour. There’s no point standing still, hoping that things will continue moving in the same direction, and you’ll book even bigger profits. You are trading, which is very different from gambling.
Relying heavily on the so-called ‘live’ broadcasts
The fourth commonly made mistake by new traders on betting exchanges, which is also an inexcusable one, is that they trade in in-play betting markets, relying on some online score tracker or delayed broadcast. A large number of bookmakers, for instance Bet365 and more, offer live coverage of various sports events. Although it’s an excellent method to watch and follow sports you love, especially when it comes to obscure tournaments and sports leagues (which aren’t normally covered by the television networks), you must never use such services for trading in in-play betting markets. It can turn out to be a huge mistake.
Simply because no matter how aggressively an online casino, bookmaker or service provider may sell its offerings, pitching them as ‘truly live,’ such broadcasts or streams are always delayed by at least a few seconds. If at all you wish to trade in-play markets, ensure that you are either at the event venue itself, or as close as possible to it, so as to be on a level playing field with the majority of traders operating in that market.
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Keeping meaningless or impractical profit targets
The last and one of the most important mistakes made by novice traders, one of the many that those new to pre-match betting commit, is setting meaningless or impractical profit targets for themselves. It’s actually akin to creating a foolish trap for oneself. The only feasible profit target you must set for yourself is that you should ultimately set one.
However, setting profit targets for certain trades, certain matches, or within certain timeframes, for instance daily, weekly or even monthly, is a sure shot recipe for disaster.
You should ideally book profits as and when profitable opportunities emerge. Sure, there’s nothing wrong in booking profit each day, as that should be your main goal, but keeping stringent profit targets for yourself will only create needless pressure on your head. All such pressure may force you to commit more judgement-related errors when you’re making in-play trades.
Some profit-guaranteeing strategies for trading on betting exchanges
If you’ve been into the sports betting world for some time and actively bet with bookmakers or betting exchanges like Bet365, Betdaq, Betfair etc. you’d know that trading on betting exchanges actually began with the emergence of Betfair. Ever since then, a number of trading strategies have emerged and made their presence felt in the marketplace. While some stood the test of time, others slowly faded into oblivion, creating big holes in the pockets of betting exchange traders.
What do you think are the most optimum strategies a trader can use while operating on Betfair, or for that matter on any other betting exchange like Betdaq or Matchbook? Let’s go over some of the un-ignorable basics of successful trading on various betting exchanges, and get acquainted with the steps of making successful trades on them.
Being aware of the market entry point
The market entry point is nothing but the initial bet placed by you at any of these exchanges. It could be an in-play bet or a regular pre-match bet. What it essentially comes down to is the moment when you feel that a valuable opportunity is in front of you, which fits in well with your trading strategy. Hence, you place your wager and then play the waiting game, keeping a constant tab on the market to develop, and possibly create the right circumstances for the opportunity to convert into a profitable trade.
Being aware of the market exit point
The market exit point can be triggered by all sorts of different events. If we talk about a tennis game, your market exit point could be the next break of serve. Whereas in the context of a football match, your market exit point could be the next goal. It could even be something as simple as a price point at which the odds have slipped enough for you to make a successful trade.
No matter what your market exit point is, you must remember that it is crucial for you to have a very clear exit points in order to enjoy successful trading on betting exchanges. Furthermore, these exit points must be defined well before entering into a market.
Being aware of stop loss
You can’t avoid losses in the sports betting industry. Whether you are an active trader on a betting exchange, or regularly place bets with conventional bookmakers or some online casino, losses are part and parcel of the game. They will happen inevitably. Hence, risk management becomes extremely important in any sports betting endeavour.
In that context, the term stop loss refers to the point in market where it is best for you to get out, and away from your initial betting position, possibly incurring a slight loss. Doing so is far better than hanging around and hoping for things to turn in your favour. In other words, a stop loss is nothing but an amount that you’re willing to stake to make that exit point trade. It’s basically your ‘out’ from an unprofitable situation.
You must also make the most of the bonuses provided by all such entities, in order to even out your losses (if you incur some). A website like can be very helpful as it provides detailed info regarding Bet365, one of the best bookmakers in the business, and all the bonuses being offered by it.
Being aware of arbitrage betting and using it to your advantage
What’s meant by arbing or arbitrage betting? Arbing or arbitrage betting is nothing but the core fundamental which forms the foundation of all trading activity that happens on betting exchanges. You take a certain position on a possible outcome of an event, let’s say the winner of an upcoming tennis match. You quickly trade out of that position as soon as you see the odds moving in your favour, thereby registering a guaranteed profit, no matter what the end result is.
For instance, you’re certain about Manchester City winning an upcoming English Premier League football match against Chelsea. If Manchester City scores the first goal, and that too within the first few minutes of the game, its odds will plummet significantly, thereby setting up an excellent arbitrage betting opportunity for you. You are guaranteed to book a profit in this scenario, regardless of what the end result may be.
Being aware of back to lay trading
Let’s first understand what’s meant by back to lay trading. Just like arbitrage betting, back to lay trading is also a core dynamic you should know about and bank upon, to enjoy successful trading on betting exchanges. It’s about backing an outcome of a certain sports event, at a certain price, then laying the same outcome at a comparatively shorter price.
Alternatively, you may also lay the outcome of a certain sports event at a certain price, and thereafter back the same outcome at a comparatively higher price. When you do so, you guarantee yourself a profit, regardless of the end result of that event.