Tuesday, 25 August 2015

A mixed portfolio for diversification

Last days I recognized that only a very small part of my money is involved in tennis trading. The stock exchanges are tumbling, because the economy of China is probably not growing that quick like expected. To be honest, the nervous markets are not good for my portfolio. I lost a high four digits amount in the last days (well before I made a five digits profit, but losses always hurt). Unfortunately the stop loss orders didn't help much, because the markets (at least in Europe) bounced back today. Well, I expect another red day tomorrow. So it's probably better being less involved in the stock markets and concentrate more on the sports trading.

Well, to make a long story short, I saw that sports trading is just a very small part of my side income. So I decided to judge it in a main context. In the future I will invest a part of my savings in sports trading and a part is reserved for the stock exchange. Beside I will keep cash, my life insurance and of course my appartment. With this diversification I should have a good base for a growing fortune.

How this decision influences my trading? I will be more relaxed. Sports trading is just around 20% of my savings. Beside I prefer to trade and not to analyze. Unknown mentioned it already some weeks ago. I think it didn't help my trading to report and comment the KPI too often. I have a tight money management and a decent risk-/reward-ratio, that's enough. I will upload my trades to mybetlog (www.mybetlog.com), but not publish the KPI section anymore. For example it's very difficult to calculate the yield with so much positions and stop losses. The basic stats like average or biggest profit and the development of the bank are part of the mybetlog tool.

About trading itself. The last week I finished the setup. I talked about it in my last post. There are three different stakes and every position is not closed before I reached a risk-/reward-ratio of 1.00. With this approach a strike rate of 50% is enough to have a small profit. The theoretical stuff is done, now is about practice. In the future the posts will be again more about my time on the ladders and less about the approach.


  1. Bring on the trading posts, will always try to advice you on that. Like I told you already I like you because you're honest, you share your losses which is quite rare in this world.

    About forex, I can't help you a lot as I'm out of my depth but tread carefully when it comes to China as there were lots of warnings about their artificial growing.

    Good trades!

  2. The classic trading posts will come back, no worries. I had to go this way, because my mind was not free. Now I have a bank account, where I make reserves for sportstrading. On the betfair account are just around 100 Euro. I had to define a big picture to put the pressure away. I mean I lose/win four digits amounts almost every day at stock exchange, why I should be worried about a 20 Euro loss at sportstrading?! Beside I recognized that the financial markets are very similar to Betfair. You can't win every day, there are up and downs. Important are stop loss orders and a good risk-/reward-ratio.

    In general you have to diversify at stock exchange and keep a decent liquididty in volatile markets.

    About sportstrading... I think I found the right setup. Obviously I didn't trade enough to judge my new approach, but I can feel it. A lost trade is not the end of the world anymore. With a strike rate of 50% I will be in profit. It's a good feeling to know that you only need to win 5 of 10 trades to be in the green zone. I just start to recognize that it helps my mind.

    In the end is psychological game, which you can only win, when you are stronger than your opponents. I just managed to set my mind in the right mode.