About The Betfair Market
One of the best ways to earn passive income is by automating on a betting exchange like Betfair as it involved stock exchange trading. There are plenty of online trading programs that you can use to access the platform and you can easily automate the betting and trading process as you please.
The good thing about this is that you can set the parameters as you would the same way that you trade manually. This is so that you do not have to worry anything after that and you just earn profits as time progresses.
That being said, you have to understand that Betfair is not a static market. There is this thing called volatility in which the prices are never equal; they’re not linear and instead, they move in a wave-like fashion.
It is wrong to see it as a straight line. When you win a trade, for example, it doesn’t necessarily mean that you win on your subsequent trades by using the same strategy because the market is so unpredictable that there is an element of randomness to it.
It is just sad to see people losing a lot of money because they refuse to change their strategies to suit the changing of the times.One prime example of this is Andrew Hall.
He is one of the best traders back in the day, but his stubbornness and refusal to change his ways had cost him dearly. Hall was the founder of the Astenback Master Commodities Fund II Ltd.
His money actually came from trading on Betfair and he has amassed a fortune, so he made a company for himself. The empire that he built was actually quite successful for a time. He had enticed investors to chip in and his empire grew to astronomical heights. But, like Icarus who went too far, so did Hall.
Long story short, Hall needed to shut down his empire because he lost a total of 30% of the company’s assets. This is just too much for one man to recoup and that it is just too impossible for him to carry on. How much did he lose exactly? Well, it is $500 million.
Remember what I’ve said earlier that the market is not static? Andrew Hall knew that the market has changed right in front of his eyes and yet, he still clings to old habits.
He thought that the tactics that have worked for him for so many years will still work today, and so, he blindly traded and traded; and the result is the same. He lost and lost, and eventually, he lost the company he has built from the fortune he got from the exchange.
So, what is the moral of the story
If Betfair and other similar markets are not Static, which means that it changes over time, then you, too, should change your ways.
What has worked for you before might not work in the future and by continuously refining your strategies, you will not suffer the same fate Andrew Hall did.