Equity investments and trading operations are a great option across the planet to try to leverage capital. There is still some conservatism on the part of the population about risk. Most people prefer to work with safe ways to monetize capital — like savings, for example.
However, even with this prejudice, many people look for better returns, even if this represents the risk. This is where trading gains strength, as a possibility to earn money from investments. As this is a term that has been widely applied within sports betting, we chose to explain this concept to you, and you can link for information about betting bonuses.
After all, what is sports trading?
When we talk about trading, we refer to the possibility of buying and selling, that is, trading. In the financial market, for example, the trading activity consists of buying and selling company shares.
Now that you know what trading is, we can link it to our world of sports betting. After all, what is the relationship between these two worlds? What is the sports trading thing that everyone talks about so much? It’s straightforward: it’s a direct application of the trading concept to the sports market.
What does a sports trader do?
Another popular word in our market is sports trader. This character chooses to invest in the sports exchange, trading its prices over time. That is, after all, how he seeks to make money — which is the main objective of this market.
What the trader does over time is to look for opportunities. He wants to buy a “sports share” for a price and sell for a higher value. In this way, the difference between what he paid to purchase and what he received when selling will be his profit.
It is important to note that the reverse can also happen. In other words, the trader can buy a position for a value and be forced to sell them for a lower matter to avoid bigger losses. That’s why trading (whether sports or not) is called a risky investment: you can win much more than on conservative options, but there is always the risk of losing.
What is scalping in sports trading?
If you are already trading in the financial market, then you have most likely heard about scalping. This is nothing more than a very short-term strategy that seeks to take advantage of rapid fluctuations in asset prices.
In sports trading, it is also possible to practice scalping. In this case, the objective is to take advantage of quick and short variations in the odds.
Note that the move was short, just two ticks. And the action can be repeated constantly throughout the game, taking advantage of this situation, preferably with safe entries. Therefore, avoid that “here and there” game in this type of strategy.
It is worth noting that, in scalping, the work is done by an ant. You gain little by little but quickly and, as far as possible, more protected. Therefore, not taking goals is essential in order not to harm the result.
Main sports trading strategies
We anticipated strategies a little to talk about scalping, but obviously, this is far from the only existing technique to work in sports trading. Below, we list other ways to trade closer to Swing Trade (trades with greater time exposure).
One of the classic strategies in sports trading is to make an entry in favor of the favorite, looking for a goal that will bring an excellent return. However, be warned: this is an entry against time. Therefore, it must be done in situations where the favorite team is better on the field.
How do you know if a Back to Favorite entry is worth it? You must establish some criteria. Below we list some that are common:
- Favorite team dominating possession in the offensive field
- Danger Play Creation
- Does not suffer dangerous counterattacks
- Sides advance and seek the bottom line
Suppose you find a pattern for the entry in favor of the favorite. Even if the game goes to halftime at 0x0, the loss rarely goes beyond 15%. On the other hand, the second half is dangerous. In other words, in the beginning, focus on the first half, where the odds move in a more controlled way.
Another widespread and most recommended strategy for beginners in sports trading is to lay the worst team on the field. In this technique, the objective is to profit from rising odds as this team is dominated by its opponent.
As you can imagine, the criteria here are reversed. So, look for teams with these characteristics to enter Lay:
- The team can’t keep the ball
- Does not create danger plays
- It seems closer to taking a goal than doing
- Positioning too far back
- Leave spaces on defense for the opponent
It is remembering that not every retreating team is a sign of a dominated team. Therefore, knowing the teams is essential in this type of strategy.
Lay to the first half winner
Another good technique you can employ in your trading is to lay a lay (i.e., lay a bet) on the team that opens the scoreboard. That’s because, at least until halftime, the odds should drop a little. However, if this team is tied, you can get an excellent profit.
Again, the Back to Favorite criteria apply. Always be on the lookout for entries where the chance of a draw is much greater than conceding the already winning team’s second goal. If the match doesn’t have goals until the break, the loss is quite controlled. And, depending on the pressure, you can still make a profit.
Goals markets are also widely used by sports traders. However, here they already look much more like a traditional bet. That is, we enter, waiting for one or more goals.
Here, there are different methodologies. Some bet on Over 2.5 and close the position after two goals in the match. In other situations, traders expect the Over 1.5 quote to come close to @2.00 and make an after conventional in this market.
I particularly like a strategy that consists of taking the Over 1.5 in this range of @[email protected] when the game is open. If the game has only one goal, around 70 minutes, you can close it without prejudice. And if both goals fall within that period, the total profit is guaranteed.
Finally, many traders like the Over 1.5 a lot, but free betting after the first goal. That is, if the game has only one goal, there is no loss. With the second goal, the total profit is won too.
Tips for sports trading
To finish this article, let’s bring you some valid tips for any sports trader. If you are starting out or even have some time in this market. Following these recommendations can make all the difference in the results.
Tip #1 • Bankroll management is mandatory
The first tip we want to leave you with is the importance of bankroll management. This is nothing more than the technical name given to the management of your capital. In other words, it’s about how you’re going to split your money for each trade.
Ideally, the percentage used in each entry should be as small as possible, preferably around 2%. Never use more than 5% of your bankroll, even if you are still starting and the total amount is low. This is the best way to protect your capital for the long term and avoid going bankrupt.
Tip #2 • Work with teams and players you know
At the beginning of your journey as a sports trader, it is pretty standard that you want to work in as many matches as possible, operating with different types of strategies and championships. The “overtrading” (excess of games) is not bad at first, to know the market.
However, taking the long term into account, this is not a best practice. The ideal is to work on a few games, focusing on those teams and competitions that you know and follow.
Tip #3 • Rate your profile as a sports trader
Throughout your journey in sports trading, references are always welcome. However, you must be careful not to copy a trader’s work.
That’s because each one has an acting profile. You can be more risk-averse as well as more conservative with your capital. And, if there is no adherence with the profile of the trader you follow, this will inevitably bring problems in the long run.
It doesn’t mean that you shouldn’t follow other players and understand the way they work. Just filter the strategies to adapt them to your profile as a sports trader.
Tip #4 • What matters is the long term
Any equity investment is long-term oriented. So if you came into sports trading thinking about getting rich overnight, forget it. With that thought, the chance of getting poorer is much greater.
We have games of all kinds every day. Your first objective then is to survive. If you have money for tomorrow, you can continue operating. So, no despair on a bad day. You don’t need to end up every day in profit. The important thing is to make money in the long run.