Racing News Blog

17/05/21

Risk

Understanding risk is important for your chances of success in trading.

If you don’t understand the dangers associated with the market you are trading, then you are less likely to trade profitably and will no doubt encounter big losses at some point. If you put yourself into positions that are high risk, you may well be unable to exit when the trade goes horribly wrong.

In life we assess risk all of the time, e.g. when crossing the road, driving a car or checking the weather forecast (especially in Britain!) when making plans to go somewhere.

If you think back to your childhood, we were taught by our parents about risk: Don’t put your fingers near the fire, don’t touch the hot stove, cross the road when the green man appears, you get my point. So we are brought up constantly learning about risk and it is very much part of our daily lives.

In trading, we also need to learn about risk, not just what is too risky but also when the risk is acceptable and it’s safe to enter and then staking accordingly.

Like the driving of a car, you need to learn in the markets where the traffic lights are, when they are red and when they are green, when you can put your foot down and when you can’t.

Once you grasp how risk works in your sport and the markets that you trade, your confidence will grow, just like when you were learning to drive that car. 

In-play trading, particularly in horse racing, by some, is classed as very risky, some say pre race is less risky than in-play.
I can tell you now, that is utter nonsense. The truth is, both are risky, trading other sports is risky, trading is risky!

Would I rather stake aggressively in-play more than pre-race? Yes, I would.

Would some successful members of Hunting For Profit rather stake more aggressively in-play than pre race? Yes, absolutely.

Whilst I do not wish to turn this blog post into a critique of in-play v’s pre-race, the truth is, both these forms of trading are profitable and both are risky.
Some of our members profit from both.

The key is to fully understand what it is you are doing, understanding risk, staking accordingly in relation to the particular race and the time of that race, when and where to exit when it goes in your favour but also when it goes against you. 

Your method of execution and staking must be factored in when assessing the risk of each market.
Understanding the market, the risks involved, your staking plan and the chances of success in that market and if it is appropriate to actually enter.
Risk versus reward (RvR) is also a factor, as well as assessing how safe that particular market is to trade.

When you join Hunting For Profit, the course and online package will teach you fully about the risks of trading in-play, so you can then stake accordingly without being a rabbit in the headlights.
It will open your eyes on how the markets operate, so that when you do trade, you can enter and exit with confidence. 

We have a couple of places left for next months course at the hotel which will be our last this summer, check out the link here: https://huntingforprofit.co.uk/trading-courses-1/

Good luck & stay green.

Matt