1. Spread Betting Mistakes Explained
2. What Is A Spread In Sports Betting
3. Betting Spreads Explained
4. Spread Betting Mistakes College Football
5. Spread Betting Mistakes Chart

The 9 Mistakes of Spread Betting

One of the biggest benefits of CFDs and Spreadbetting can lead to the costliest mistake. You have the ability to trade large exposure with a small margin requirement, but this does not mean you have to use the maximum that your platform will allow. Profits and losses are amplified to the size (value) of your positions and not the initial margin.

Common Spread Betting Mistakes Posted May 24th, 2020 by TSFX & filed under Spread Betting Articles. If you are new to financial spread betting or even if you are a seasoned trader, you will make the occasional mistake however hard you try not to. The 9 Mistakes of Spread Betting. Financial spread betting takes no prisoners. Get involved unprepared, and you can quickly burn through your funds. Here’s, we’ll look at the 8 most common spread betting mistakes. Avoid them, and you’ll be well on your way to a successful financial spread betting career. Mistake #1 – Not having an edge.

Financial spread betting takes no prisoners. Get involved unprepared, and you can quickly burn through your funds. Here’s, we’ll look at the 8 most common spread betting mistakes. Avoid them, and you’ll be well on your way to a successful financial spread betting career.

Mistake #1 – Not having an edge

When you’re making a new bet, always ask yourself:

“What’s my edge?”

If you don’t know, you probably don’t have one.

Having an edge is important in spread betting. With an edge on your side, a reasonable volume of bets should result in a profit. In later topics we’ll be looking at strategies that can give you an edge – like well timed entries, exits, combined with good risk management. (There’s even a great edge to be found in knowing when not to bet!)

Before each bet, get into the habit of speaking your edge aloud. If you have trouble, reconsider that bet!

Mistake #2 – Not planning

People who think spread betting is just mindless gambling are always surprised when I tell them how much goes into planing.

Plans come in many guises. Traders who profit from spread betting will usually have an overall annual plan, plus a detailed short-term plan (for instance, a game plan for the next week.) They’ll also prepare detailed plans for the next day.

Most people who decide to have a go at spread betting rely heavily on ‘tips’. They haven’t devised their own method of making bets, so they devour tips from magazines, newspapers, websites, and people they meet in the pub.

If you’re looking for tips, you’ll find no shortage. The trouble is, using these you’re essentially just taking a punt.

Most people’s ‘tips’ only suggest an entry. What about your exit strategy? Your money management, and your risk management? Most people never get beyond the stage where they trade on other people’s tips. These people are never winners.

Mistake #3 – Betting the wrong amount

So you know when you’re going to enter a bet, and you know when you’re going to exit. Not so fast – you still need to decide how much to bet!

This is important, because you’ll have losing trades as well as wining trades.

Spread Betting Mistakes Explained

Example

Tom is relatively new to spread betting. He decided to open an account with a spread betting firm after reading about spread betting in the newspaper. He spent a few weeks trading for fun using Capital Spreads’ demo account, and eventually became confident enough to fund his real money account with £1,000.

With the credit crunch in full swing, Tom has become bearish on the banking sector – in particular Barclays. The firm recently slumped to a record low after one City’s analyst advised clients to sell, and Tom believes the share has further to fall.

The stock is currently trading at 240p, and Tom opens the bet online first thing in the morning at 240p for £25 per point. He reckons the stock should drop to 190p, making him a profit of £1,000. That day is busy at work, so it’s late afternoon before Tom gets the chance to log into his spread betting account and see how things are going.

Unfortunately, Barclays has rallied, and is up to 265p, losing him £625. He receives an email from his spread betting firm explaining that he needs to fund his account with more money if he wants to keep his bet open. He’s lost just over 62% of his initial bankroll. He decides to cut his losses and close the bet. Over the next week, Barclaysdoes indeed drop to 190p as Tom predicted, but it’s too late for Tom – who has already lost money on the bet.

What went wrong?

Tom didn’t decide in advance the point at which he’d decide that he was wrong. He only considered the upside of his bet. Spread betting is an ‘edge’ game. Even when you make consistently sound betting decisions, you’ll still have a lot of trades go against you.

Secondly, Tom’s bet was obscenely large considering the funds in his account.

As a rule of thumb, the amount you stand to lose if you’re wrong shouldn’t exceed 2% of your account. Had Tom been more sensible, he’d have decided when was going to exit the bet. Suppose that point was if Barclays moved from 190p to 210p – a move of 20p. Since 2% of Tom’s account is £20, in fact he could only afford a £1 per point on this bet.

What you’ve just read is a good example of a phenomenon known as overtrading. Overtrading comes in several forms, but it usually results in a trader going bust. Take risks, but play within your limits!

Mistake #4 – Not using basic risk management.

The example above showed you an example of betting without having an exit plan. Few things are more certain to lose you money!

Before any bet is made, you must decide where you’ll enter the bet, where you’ll exit if you lose money, how much to bet, and what your profit target will be. Spread betting is about managing the downside just as much as the upside. It’s a sad secret of spread betting that many people go head-first into it without giving any thought to the downside. Anybody can deal with a few nice wins, but how you cope with losing trades is what dictates whether you’ll be a winner in the long run.

Risk management means having pre-defined exit points for all your bets. If you’re going to win at spread betting, you can’t ignore this.

Mistake #5 – Bailing at the wrong time

People think that winning at spread betting is just about knowing when to enter a trade. True, timing is important. But for most traders, knowing when to exit is more important.

Many traders could significantly improve their numbers if they spent as much time planning exits as entries.

Mistake #6 – Being out of control!

When you place a bet, you don’t know what will happen. You might win. You might lose. You might break even.

That’s the nature of the beast. But if you have an edge, then over the long term your betting will have a positive expectancy. Any one bet could be a loser, but we play the odds and let the edge play itself out.

Losers tend not to be in control.

Mistake #7 – Being out of tune with the markets

As I write this we’re in the middle of a bear market. But do you know what the majority of bets place with online trading accounts are? Long. That’s right – the overwhelming majority of customers are still betting on stocks going UP when the markets are heading DOWN.

I’m not saying that you can’t take a contrarian position on where the markets are moving. But there’s a high chance that many of these folk aren’t even aware that you can bet on prices falling (e.g. shorting).

There are studies going back to the 1930 that show most people have a bias to the long side. Why? If the market’s going down we want to be mainly short, and if the market’s going up we want to be mainly long. Simple! Many spread bettors lost money from 2001 to early 2003 because they didn’t adjust their approach – they were still mainly placing long bets when the overall trend was down.

Mistake #8 – Running before you can walk

Your friend tells you that he’s taking a course in electrics over the weekend, and setting himself up as an electrician the following weel. Firstly, you wouldn’t believe him. Secondly, there’s no way you’d let him rewire your home. But plenty of people come into spread betting expecting to be able to pick it up over a weekend and start banking huge profits straight away.

You might be thinking the comparison is unfair. It takes time and skill to become a qualified electrician, whereas spread betting is easy. Anyone can do it! The truth is that while it doesn’t take as long to learn spread betting, it does take time to learn to consistantly win at spread betting.

You need an edge that works for you, and you need to learn how to work it – with real money. If you don’t take things slowly, you can lose a lot of money fast. The majority, perhaps the vast majority, lose money in their first year at spread betting. It’s best to assume that will include you, unless you progress steadily and keep your bet sizes low while you’re still learning.

Mistake #9 – Being emotionally unstable.

Spread betting can be a rough ride at times. In your day job you can have a bad day and still get paid. In trading, you can do everything right and lose money.

If the thought of this sounds crushing, too much to cope with, then there’s a good chance that spread betting might not be for you. If you have an edge then you’ll win in the long run, but even then losing days will be part and parcel of the job. You need emotional stability to endure that. A quality not everybody has.

What’s Your Greatest Weakness as a Trader?

It is quite important for spread traders to be aware of the risks as well as the rewards when placing trades. I know our spread trading strengths and weaknesses change over time as we attempt to develop our strengths and tackle our weaknesses, but even so at any particular moment in time there are usually certain things that we are trying to improve.

The title of this post is somewhat misleading as instead of discussing our weaknesses we should put more emphasis on highlighting our past weaknesses and how we worked to overcome that. Knowing your weakness is your strength, but doing nothing about the known weakness is a worse weakness.

My biggest learning over these 3 years: Don’t overtrade, technical analysis does help tremendously to time entry/exit, don’t get emotionally attached to your shares, and don’t follow anyone advice when it comes to picking shares or timing entry/exits- just do your own homework!

When I first started I knew how to execute a trade, but nothing about trading psychology, risk and money management or about building a robust trading plan, or the discipline required to maintain it. Unfortunately these things aren’t very exciting, but they’re crucial to being a successful trader

In my own case I believe one of the flaws at the present time is that sometimes I’m still guilty of overtrading and not sticking to my own rules.

Here are some other common spread trader weaknesses -:

1. Not Understanding Leverage. Undertstanding the true value of your trades means that you are able to manage your downside risk. Wtih spread trading you only need to deposit a small percentage to gain a substantial exposure and this means that your ROI is magnified, but this cuts both ways.
2. Not following your own conviction with the consequence that you constantly get shaken out of good trades due to fear.
3. Overtrading is very common if you don’t really watch it. Some tend to follow a cycle of building their spread betting account for months only to give a hefty chunk back to the market.
4. Not keeping a good written trading log. Keeping good logs of trades is essential.
5. Entering trades just to prove to oneself that you can trade any market conditions! The consequence of this is that you again break your own rules and techniques so you won’t be able to maintain your edge. Your trading system will only work in certain market conditions.
6. Not having a Trading Plan. You need a trading plan and trading strategy with clear profit targets and exit points to take emotion out of the equation. This will help you manage trades (minimising losses and locking in profits) while avoiding the temptation to take out profits early or letting losses run for too long.
7. Don’t let emotion get in the way of successful spread betting. How do you overcome emotion? Understand your tendencies and personality traits so you can combat your weaknesses and maximise your strengths more effectively. Stick with your strategy. When you have a losing trade, don’t go all-in to try to make it all back in one shot. It’s smarter to make it back a little at a time rather than being stuck with two crippling losses.
8. Not Knowing the Market. Make sure you understand the market you are trading and what makes it move. For instance, you should know that Gold normally moves in inverse proportion to the Dollar and that the price of gold affects mining shares.
9. Not Following the News. While charts and technical analysis help to profit future price movements based on price patterns, fundamentals events and news releases can have a big say as well.

Note: Knowing your inner strengths and weaknesses will also give you an insight of how you will react in a given situation such as in stressful market conditions when a spread trade may be going against you. This will help you recognise areas where you need to improve. Keep a trading record of all your trades and do go over them once in a while. Given time you may start identifying common recurring patterns when you are in a profitable trade versus a losing trade. You will then be able to analyse your results properly – identifying strengths and building on your weaknesses which will ultimately help you become a better trader and build on your long term trading success.

Day trading is hard. A thousand different traders all with a different system + a thousand different black boxes all with different setups. Nothing can possibly work all the time and its quite likely that about 50% of things will only work 50% of the time. That’s the mathematical probability of it. It is very frustrating and time consuming waiting for trades to come to you, so you go off searching for them and things start going wrong because you get emotional about it and start doing what you shouldn’t do. It can be done but don’t think it is easy. I read a blog the other day about a Pontoon (blackjack) player who won overall. His only system is that he had learnt the mathematical probability of winning or losing from each number he was holding. If he was holding say 18pts he knew that the bank has a smaller probability than him of making 19-21. He also knew the 50% probability number where he should hold or twist for an additional card.

You want to succeed? Have a good understanding of your trading objectives; why you want to trade, what you want to accomplish. Lastly, study yourself. Understand about your personality, time available, strength and weaknesses.

I received the following comment from a spread trader -:

‘I have banked the remaining money and will not spread bet until I really know what I am doing. I mean. I could do this FTSE intraday trading – spotting the trend lines and the supports…etc, with a tight stop and small bet sizes, say £10pp, but it is very risky still. And I am so down on the balance now, that its hardly worth starting again. I should really stick to betting only when I know the odds are heavily in my favour – and the FTSE100 is so prone to dive or rise on news that the investments houses find out about way before we as punters can – by the time we find something out, the market has moved against us. It is gambling, no two ways about it.’

You are probably betting too large a stake? You should have tried £1 per point. Logical decision making and clear thinking somehow become much more apparent with smaller stakes. As I’ve stated here many times before, when I used to trade larger stakes I constantly lost money – you don’t realise it, but emotions subconsciously affect your decision making. Once I was sitting in a large stake trade and could feel my heart pounding through my chest. I think that was a big part of the realisation that emotions were taking over.

The most common spread betting mistakes that new spread betters tent to make when they start include the following:

• Trading without any kind of edge or proven positive expectancy trading system.
• Trading against the wider market trend (for instance, taking long positions in Barclays when banking stocks in general are under pressure).
• Trading without a trading plan and without trading objectives.
• Using an inappropriate bet size (for instance, betting £10 a point on the FTSE 100 with an account of just £2000.

No matter where you fall on the sports betting spectrum, you’re going to make mistakes. Some are avoidable; others serve as learning experiences. Many leave you scratching your head.

A mistake at an inopportune time in a game can be the difference between a win and a loss. It works the same way with sports betting. Mistakes happen to everyone, but knowing what to watch out for, and how to learn from them when they occur, is the key to avoiding making too many.

We’ve got some advice to mitigate the damage and minimize your sports betting losses stemming from common mistakes. We’ll cover all ends of the spectrum from beginner to advanced sports bettors plus common sports betting mistakes particular to the NFL, NBA, and MLB.

Top nine sports betting mistakes across all sports

Mistakes are inevitable for those new to sports betting. Some of the most common, such as betting while drinking or putting everything you have on one bet, can be easily avoided with just a little bit of common sense.

Educating yourself on what to look out for more specifically can help to cut down on your early sports betting losses. Here are three big pitfalls to watch out for.

Beginner betting mistakes

1. Betting too much: This applies to both betting amounts and the number of games you’re betting on. On the former, betting amounts with which you are uncomfortable right off the bat can lead to a very rude awakening. For the latter, spreading yourself too thin impedes your ability to focus.

2. Having unrealistic performance expectations: It’s not uncommon to enter the world of sports betting with delusions of grandeur. When you’re full of hope and optimism, that 10-team parlay you slapped together can look like the ticket to the big leagues. Then reality sets in. Sports betting can be a grind, and it takes time to develop skills, so keep that in mind.

3. Confusing your betting and rooting interests: This can rear its head at any experience level, but it’s very common for those new to the game. In sports betting, there are two outcomes you can consider:

• What you’d like to happen
• What’s most likely to happen

Leave your heart out of the equation and build a strong case for all of the bets you plan to make.

Intermediate sports betting mistakes

As your experience level grows, so too will your confidence. However, remember that you aren’t out of the woods yet. Sports betting is like one big learning experience, and situations that you hadn’t even thought of can pop up at any time. Watch out for these three red flags as you continue your journey.

4. Poor money management: Failure to manage your bankroll properly is not conducive to long-term success with sports betting. You should have a clear budget in mind for what you plan to bet over a timeframe, as well as the amount you plan to devote to each unit. If you’re all over the map and undisciplined, don’t be surprised if you’re hitting the deposit button a lot.

5. Not shopping for the best lines: While there’s nothing wrong with having a favorite sportsbook or two, that doesn’t mean those operators will have the best lines on each game. Be sure to view the market as a whole and shop for the best prices. In today’s environment, comparing the odds at a number of online sportsbooks and sportsbook apps is a piece of cake.

6. Following the crowd: While it can be reassuring when your general thoughts on a game align with the betting public or the consensus opinions of pundits, don’t just follow that blindly as if you are automatically on the right track. Dig deeper and form your own opinion. If the herd was right all the time, sportsbooks would lose lots of money. They don’t.

Expert sports betting mistakes

You’ve made it, or so you think. When you get to the point that you’re cashing more tickets and posting profits consistently, you’ll feel an incredible amount of satisfaction. However, it’s imperative to avoid having your confidence jacked up so much that you feel infallible. Keep an eye out for these landmines when success starts to emerge.

7. Failure to adapt: We will all hit a wall at various times. It could be a short stretch or a long-term downswing, and it stinks regardless of how long it lasts. It’s important to use it as an opportunity to assess your strategy. Is there something that you’re missing that can be tweaked? Stubbornness in the face of a clear problem is rarely the right call.

8. Not paying attention to smart money: Once you achieve a certain level of success, you’ll rightfully have confidence in your findings. However, you should still take the time to see what the sharp bettors have to say. If they’re on the opposite side from you, then it’s a really good idea to give everything a once-over to see if you missed anything.

9. Continually chasing losses: Bettors at all points on the spectrum can fall into this trap, even the so-called experts. If you’re frequently doubling-down because you think you’re “due,” it’s time to take a closer look. Instead of doing that, take the losses and rough patches in stride, stick to your plan, and be open to adapting when you need to.

Most common NFL betting mistakes

Betting on the NFL is the most popular game in town at sportsbooks. The extra time for handicapping in between games only enhances the appeal. However, additional time spent studying doesn’t mean that mistakes won’t happen. Here are three big ones to keep your eyes on.

Failing to account for injuries

Injuries are inevitable in the NFL, and failure to account for them properly can be disastrous. Next man up applies at many positions, but injuries to key cogs can disrupt the game plan. Among those that deserve a good amount of weight are injuries at QB, offensive line or to a defensive leader.

Ignoring NFL line moves

Lines do not stay still in the NFL from the time they are released until you’re ready to place your bets. You need to pay attention to what’s going on and adjust your focus as needed. A half-point here or there may not seem like much, but it can absolutely impact your overall results.

Opinion overload

There is a ton of coverage on the NFL, and you won’t be lacking for opinions on how things will shake out. While it’s perfectly fine to respect the takes of the sources you trust, be careful not to allow your own thoughts to be swayed too much.

Spread betting mistakes

The point spread is one of the most popular offerings at online sportsbooks, but it’s a tough nut to crack consistently. When you add in the mistakes that are going to pop up, the challenge becomes even greater. Here’s a trio that you can work on avoiding.

Over- or under-valuing home field

This is one of the areas that make spread betting challenging. Exactly how much weight should you give to the home field, and have the oddsmakers built that into the number? Answers and opinions will vary, so the best advice is to study up and make sure you factor it into your thinking.

Just winging it

Your best guess just isn’t going to cut it when betting on the spread. There’s work involved when it comes to beating the spread consistently. If you’re pressed for time, then consider leaning on a source you trust, either one of the paid or free variety. Don’t just try to ballpark numbers and assume everything will work out fine.

Not comparing lines at other books

What Is A Spread In Sports Betting

Not all spreads are created equal. While many operators will be right in range upon release, betting action can impact the odds and spreads being offered at each outlet. As part of your weekly research, take the time to shop around for the best prices. The few minutes you spend doing so can be well worth it.

Most common Super Bowl betting mistakes

The Super Bowl is the largest betting event of the calendar year. Even non-sports fans get involved. As you can imagine, many mistakes are made when betting on the Super Bowl. Here are three you can place on the “to be avoided” list.

Betting too many props

Sportsbooks go all out for the Super Bowl and release hundreds of prop bets for bettors to consider. Attempting to get a handle on or handicap all of them can be a fool’s errand. Instead of that, scan through the offerings and make note of what jumps out to you. Do it a second time, and you should walk away with a shortlist.

Betting out of your league

Since it’s the last football game of the year, the Super Bowl can get you to go overboard and bet much more than you’re comfortable with. Don’t be that guy or gal. Stay in your lane and look for spots that you feel most comfortable with. There will be plenty of time to increase stakes down the road, so be patient.

Failing to trust your instincts

Virtually everyone has a Super Bowl pick to consider, and a strong consensus one way or the other can influence decision-making. Don’t let this happen to you. If you’ve followed a process that has worked for you all season long, there’s no need to shift gears just so that you fall in line with the crowd.

Most common NBA betting mistakes

Pro basketball betting brings plenty of action to the window, and there are hundreds of angles to consider throughout the season. There will naturally be some pain along the way, but here are three mistakes to keep on your radar in a bid to reduce it.

Not watching the sharp money

Tracking public betting numbers can be a helpful exercise to spot the general consensus on a game, but you should be giving even more weight to what the sharp bettors have to say. There are sites that track the betting volume in comparison to the number of tickets, and you can also keep your eyes peeled for sudden line moves.

Missing out on late scratches

Few things are more frustrating than getting set to watch a game you had been looking forward to and having an unannounced scratch pop up. It happens in the NBA here and there, so be sure to stay on top of injury news throughout the day. If you can’t make heads or tails of what might happen, pass on the game.

Failing to account for travel and rest

Recent form is something you should be looking at while breaking down the games as it is, but take it a step further and consider what the schedule has been like of late. Is one side playing a lot of games this week? Has the other had some time off? Small pieces of intel such as this can quickly change your perspective.

Most common MLB betting mistakes

A normal MLB season is a lengthy one, and betting baseball daily can be a grind at times. As such, taking a day off here and there can be a good idea to recharge the batteries. Failure to do so could lead you to making some of the following mistakes.

Always betting the favorite or underdog

As baseball is a moneyline-driven sport, it’s not uncommon to see MLB bettors look for the sure thing with the favorites or seek out the big score on the underdog. The two approaches are fine, but be sure to mix it up and not force it. If you continually do the same thing over and over, you’ll get bit before too long.

Discounting starting pitcher value

This should be a huge focus for you as you handicap MLB games. Failing to account for the strengths and weaknesses of the pitchers who are going in the game can be a recipe for disaster. Additionally, be sure to go deeper than season-long stats by examining the results over the last three starts to account for current form. This is particularly important if you’re looking at the first five innings betting line.

Not accounting for lineup changes

Starting lineups for MLB games are generally released well in advance of the first pitch. As such, there’s just no excuse for not taking the time to see who’s going and who’s not. If it’s a game in which the lineup has yet to be released when you’re ready to bet, don’t be afraid to pass on the game and live to fight another day.

Most common horse betting mistakes

Betting on horse racing can be quite enjoyable and potentially profitable, but there are lots of pitfalls to watch out for. The so-called “sure things” can turn out to be anything but, and so on. Here are a few more to keep in mind the next time you play the ponies.

Placing too much weight on the morning line

The morning line odds are released well in advance of the races going off. While this makes for a great starting point, the odds can shift dramatically once betting opens up. As you get set to bet, be sure that you’re paying attention to the current numbers and not just relying on the odds from hours ago.

Overvaluing one statistic

While it would be great if there were one statistic that provided the magic answer for horse races, there simply isn’t. Just like other sports, some stats carry more weight than others, but they’re all just a piece of the same puzzle. Be sure to examine the complete picture before placing your bets.

Betting Spreads Explained

Trying to bet on every race

A typical card can include up to 10 races or more. While you can certainly bet on all of them if you feel there’s an edge to be found, there’s also no need to do so. If there’s a race you can’t get a good read on, then simply pass and move on to the next one.

Most Recent Betting Guides

Is using a betting system a mistake?

If you have a specific handicapping strategy that you use consistently, then you’re using a betting system. There is also plenty to be found online and on social media, as well as tips on how you can create your own.

A basic handicapping system works through a series of questions on the game at hand. Once you’ve gathered all of the information, you make decisions on what to bet or pass on. This can help take emotion out of the equation and assist you in making more focused decisions.

There are also systems that hit on specific data points, such as a home divisional underdog in the NFL, or a rested NBA team over one that has played three games in four nights. Additionally, there are systems revolving around specific bankroll strategies.

Spread Betting Mistakes College Football

Is using a betting system a mistake? The answer varies depending on the system. There’s no one magic system that’s always right, but a quality handicapping process can lead you on the path to being correct more often than you’re wrong.

Spread Betting Mistakes Chart

The mistakes can creep in when you start searching for the holy grail. There are lots of folks who sell systems and picks that don’t amount to all that much, so use caution and take a buyer beware approach. If you can’t verify what you’re paying for, then that’s a clear sign to keep shopping.