Fixed Odds Trading - Getting Started
So, having looked at some examples of the bets available to us for our fixed odds trading, and how these bets work, I thought it might useful if I gave you some advice and help in getting started. Like many things it is a relatively simple way to trade, and whilst it has many advantages over conventional trading, to be successful, you need to understand the basics and in particular the differences between this form of trading and more conventional forms of investing. So where do we start?
Fixed Odds Trading - Virtual Account
If you are a novice trader or relatively new to trading and investing ( and particularly if you have never placed a live bet or trade before ) I would suggest you start by opening a virtual account. This is very easy to set up, and your account will be credited with £10,000 to get you started. All the bets are available and work in the same way as on the live account. Try to trade as if it you were using real money, which is difficult I know, but it is good discipline. Practice with very small amounts on very simple bets to start with so that you get used to the system, what bets are available in particular markets, and how the odds are calculated and presented to you for each trade.
Fixed Odds Trading - Live Account
Once you have practised on a virtual account it is time to open the live account, and the approach I suggest to everyone ( whatever market or instrument ) is to start small and build up gradually. Now when you open your account, please don't forget to enter the promotional code AC-BOM for your free £20 which will be credited to your account - courtesy of me.
When I started trading in currency, I began using micro lots in single contracts. Now for those currency traders amongst you, you will know that a micro lot is one tenth of the normal size - so for each pip movement in price you win or lose 10 cents. Trading in one mini contract at a time I was happy learning to trade, knowing that the most I could lose in a day was $10, as most pairs move approximately 100 pips in a day. This is the approach you should take when learning to trade using fixed odds trading. Use the smallest bet size available for each trade, which is normally a few pounds - you can always increase the bet sizes as you improve your trading skills and your confidence grows. There is nothing wrong with starting small and making a few pounds here and there. The real strength of fixed odds betting is in the area of risk.
If you are a regular trader and have visited my other sites, you will know that managing and retaining your working capital is key to your success. Lose all your capital and you are of the game. With fixed odds trading, your downside risk is always known before you enter the trade - it never changes, no matter whether this is a flash up bet of 2 minutes, or a long term barrier range bet over 20 days. If you lose, it will only ever be the fixed amount of the bet that is lost.
Fixed odds trading also allows you to start with a very small amount of capital - you can even start with £10 or 15 euros. Now unlike the retail forex you do not have to worry about leverage or margin which wipes out new traders in days. Unfortunately this is the dream that is sold by many forex brokers, that you can start trading currency with a very small amount of capital. What they never explain is the risks you are taking, and that 95% of retail forex traders fail because they have insufficient capital and are over leveraged. With fixed odds trading this is NOT an issue - I hope I have made the point!
Fixed Odds Trading - Placing Bets
OK, you've opened your live account and deposited a small amount to get you started, and I'm going to assume that you have some knowledge of trading and are looking to start with currency. I would suggest that you start with some very simple trades, such as a bear contract or bull contract where you are simply betting that a pair will be higher or lower over the contract period.
All you need to do in order to place the bet is select the amount you would like to win ( remember that your stake is deducted from this amount to give you your profit on the trade ) and the bet will be calculated for you. You will then have a certain amount of time (seconds or minutes etc ) to confirm the bet. If you are happy with the return then accept the bet. No bets can be cancelled once placed. On expiry you either win or lose and you account is updated.
This is the most common and simplest way to enter and manage bets when you start. You simply select "buy" to open the bet, which will them run until expiry ( or the contract is closed early in a one touch for example) - you do not need to do anything else - there is no stop loss to manage, no margin calls to worry about, and you do not need to be in front of your screen all day long.
Once you have built up your confidence you may want to look at some of the more advanced ways to open and manage your fixed odds trading bets, which we'll look at next.
Fixed odds trading - next page
