5 tips for successful tennis trading from TheTrader
Tennis is rapidly gaining popularity in trading exchanges. Traders realize how profitable and volatile this sport is when you trade it. While some know their way in the markets, others merely follow the crowd. If you fall into this category, no worries, you have thetrader.bet to give you pointers. And as you read on, you will find the best tips to trade tennis profitably and successfully. Let’s go!
Understand the Sport Before You Trade It
This is where everybody misses it; not knowing the basics of tennis before trading it. You will find that tennis fans will excel more at trading. When you understand the rules and workings of the game, you will find it easier in the exchange.
Luckily, tennis is a very simple sport, and learning the game is not difficult. You need to read the official rules and watch a few games, and you are good to go. But, you never know; you might like it to the extent of it being your favorite.
Understanding the sport would give you an easier time in the exchange as you will understand which options to use at the right time.
Always Factor in Risk to Reward
Tennis is a volatile sport to trade, and if you are not careful of your risk to reward, you will burn your capital. The concept is that the amount you stand to lose should not be greater than how much you are potentially winning.
As a rule of thumb, you should stick with a minimum risk to reward of 1:3. So for every £1, you stand to lose, you gain £3.
Let’s use 1:3 in a simple scenario. And for this example, we will assume you have a low win rate of 30%. So, roughly for every ten trades you take, you lose seven, which is not so good in itself.
On the seven trades, you don’t win; you lose £7 in total. For your three wins, you win £9. Your net profit after these ten trades is £2, which is still positive. That is a rough explanation of how risk to reward works in your favor, even with the poorest win rate.
Don’t Get Addicted to the Profits
Being a high-paying sport, it is easy to get distracted and addicted to your profits from tennis trading. One thing you don’t pay attention to is that trading is a mental sport, and sometimes, you need to give yourself some rest. Have some rules to keep you away from the screens after making enough profits. It will allow you to get the required mental break, but it would also save you from potentially giving your profits back to the market.
Another adverse effect of being addicted to profits breeds bad losers. No one is invincible in the markets, so losses are inevitable. Even the best tennis traders don’t win every trade.
The most important thing is to be profitable in the long run, so don’t judge yourself because of one trade when you lose. With the proper risk to reward and trading mindset, you will remain in net profit.
Always Work With a Strategy
If you think you can start trading tennis long-term, based on pure luck, it won’t end well. There are numerous tennis trading strategies, especially on thetrader.bet. Find one that works for you and apply it diligently.
Don’t make the mistake of trying to combine so many strategies in the name of finding the holy grail. It is best to take it one step at a time; only take on another strategy when you have mastered one.
Most importantly, understand that there is no holy grail method. Every strategy has its strengths and weaknesses, which come with occasional losses. Some scams sell the idea of a holy grail strategy to rip off ignorant individuals. Stay conscious and never fall victim to such.
Understand Tennis Tournaments and the Courts
Tennis has a couple of big tournaments like Wimbledon, US Open, Australian Open, WTA, ATP, etc. During such times, the market moves better, and traders who take advantage of it make more.
You should know the times of these tournaments and capitalize on them because you make even more than regular events.
Also, each tennis tournament is associated with a certain court. It is either on grass, clay, or hard. Over the years, statistics show that some players excel on different courts over others for some reason. For instance, Rafael Nadal is known for his dominance on clay court, while Novak Djokovic thrives better on hard court.
It may sound trivial but always factor in court type in your pre-game analysis. It would help you to pick better favorites in matchups. And understand each tournament with the courts associated with it.
You will enjoy tennis trading if you approach it correctly. Being a volatile sport, you stand to win a lot and potentially lose more. These tips are sourced from several years of experience with tennis trading, and applying them would take you to another level of profitability. Take your time to read through again before reviewing how you will apply them to the markets; you will never regret it!