Win, by playing the losers game!
Are you a loser, or are you just playing the losers game? By playing the losers game, you can actually become a winner. Let me explain how this approach can transform your trading strategy and overall performance.
The Concept of the Losers Game
I was inspired to write this by a concept called “The Losers Game.”.
The core idea is that by focusing on a simple variation of a traditional strategy, you can come out ahead. This concept was brought to my attention during a tennis match after years of not playing. My coach advised me to stop aiming for spectacular shots and instead focus on getting the ball back into play. This strategy allowed me to outlast my opponents and capitalise on their mistakes, embodying the essence of the losers game.
In short, when playing Tennis, Professional Tennis players win games, amateur players lose games.
The key concept here is that rather than trying to go for a winner, hitting the perfect shot. Just keeping the ball in play would be enough to force my opponent to make a mistake.
It works.
Applying the Losers Game to Trading
Just as in tennis, where the goal shifted from winning to simply avoiding mistakes, the same principle applies to trading markets. In sports trading, particularly with Betfair, you’ll encounter various types of participants—some are casual punters, while others are more serious traders who may not always have a refined strategy.
Why Many Traders Fail
I’ve observed many traders diving into the market without a solid plan, often copying strategies from popular videos or e-books without understanding their nuances.
Publicly available information doesn’t always equate to effective trading advice. To truly excel, one must invest in their trading skills and tools. But also, not making mistakes or common trading errors, is very effectice.
The Consequences of Random Trading
One thing I’ve consistently tested over a large numbers of years, is what happens with random trading strategies.
Typically, random trading results in a slow decline of your account balance due to commission costs. It’s common to see graphs where a random strategy leads to gradual losses over time.
Conversely, by modifying my strategy to avoid common mistakes, I’ve been able to turn the tide and achieve profits.
My Approach: Avoiding the Most Obvious Errors
When starting out, my primary goal was not to make money but to avoid losing it.
Trading at random can yield both positive and negative trades, but the focus should be on breaking even and eliminating the most obvious errors. Most traders overestimate their abilities and fail to address these fundamental mistakes, leading to long-term losses.
In the same way that game theory works but minimising your maximum loss. The losers game works by shifting your trading forcus to the same thing.
How I Improved My Trading Strategy
In my early days of trading on horse racing, I made numerous obvious errors. By identifying and correcting these mistakes, my performance improved significantly.
Trying to scalp in a volatile market wouldn’t work, trying to get a large market move in a high quality competitive handicap was another thing that wouldn’t work. Just matching my strategy to the likely market was a positive step forward.
This approach, focusing on removing errors and understanding their causes, is akin to playing the losers game. It’s about staying in the game long enough to eventually see positive outcomes.
Conclusion: The Power of Playing the Losers Game
Trading, like tennis, involves bouncing around and navigating errors.
By staying in the game and focusing on reducing mistakes, you’ll find that the path to success is much clearer. The key is to trade with an understanding of where the biggest losses occur and to refine your strategy accordingly.
By trading at random, in the long-term, you will break even minus commission. Your mission, should you choose to accept it, is to just nudge yourself over that line.
If you play the losers game and work hard to avoid obvious errors. It’s a giant step forward.