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Why Short-Term Trading is Key to Getting Profits

Introduction

The betting exchange is a prime example of an entity that experiences market volatility at its finest. With so many factors to consider that have an influence on the outcome, people can only make use of tactics to either win and make the best investing money or hedge against major losses.

That being said, a common mistake that is being done by main traders- professional and beginners alike, is that they tend to go in and place their bets a few minutes before the race has begun. This is actually a huge mistake because you have to understand that, as I’ve said earlier, there are a lot of things to consider when it comes to price movements. If trading just a few minutes before is a bad thing, then what should you do then?

Short-Term Trading is the Way to Go

Before giving you a tactic that will surely help you make huge profits, I want to define it first. Short-term trading is the act of holding a position so quickly that you enter and exit in just a span of a few seconds.
This is so that the price movements will not go against you. The shorter the time you enter and exit the trade, the better.

Now, you might be wondering why the example in the introductory part of the post is a mistake. Well, let me explain. Although you can certainly place bets just a few minutes before the race begins, far too many people wait until the race finishes. That is where the mistake begins.

You see, as I’ve alluded to earlier, there are plenty of conditions that you have to take a look at. There is the terrain, there is the course, and there is also the weather condition as well. Should you place a bet on a horse that you thought would help you win, but as the race progresses, you see that the market price moves against you and not in your favor, then you will lose more than you should.

That is why the shorter your trading position is, the better. I highly recommend that you follow the 10-20-second rule wherein you place a bet and then quickly exit it before the race ends. This is so that the current price will most likely be the profit that you’re going to get, with a little bit of over/under in some cases.

Conclusion

Short-term trading is the way to go if you want to earn profits in the betting exchange. You enter the position and exit it in just a few seconds’ time. You can make use of scratch trades if you feel that the price starts to move against you.

If your trading plan does not involve this strategy, I highly recommend that you start incorporating it. Remember, the main reason why we join the market is to make profits, right? Therefore, you have to employ some measures that will ensure the victory for you. Short-term trading is the key.