Lesson # 5
Tips and Hints
1. Before beginning your arbitraging activities, ensure that you fully understand the theory, methodology and implications.
2. Test it out on paper first.
3. When you first start to arbitrage with real money, use small amounts initially. That way, you are able to eliminate any misconceptions that you had about arbitraging at a minimum cost to yourself.
4. Be patient. Learning to become a good arbitrager doesn’t come overnight.
5. Accept that you will make mistakes and that this is all part of the learning process.
6. If you think that the odds on a horse will decrease, place the win bet first and wait until the odds fall before placing the lay bet.
7. If you think that the odds on a horse will increase, place the lay bet first and wait until the odds to increase before placing the win bet.
8. If you intend to arbitrage a win bet, ensure that you have every expectation that the horse will win. The odds may move only slightly, or may not move at all or may move in the wrong direction. This will prevent you from arbitraging your bet and, if the horse doesn’t win, you will lose your stake.
9. If you intend to arbitrage a lay bet, ensure that you have every expectation that the horse will lose. The odds may move only slightly, or may not move at all or may move in the wrong direction. This will prevent you from arbitraging your bet and, if the horse wins, you will lose your money.
10. Place the first part of your arbitrage bet on the market as soon as possible and place the second part of the arbitrage bet as late as possible. However, once your intended arbitrage profit has been realised, arbitrage your bet. Do not wait until the odds get any higher or any lower, they may change direction and you will regret the fact that you didn’t arbitrage your bet when the opportunity arose.
11. Prior to placing your initial bet, create a plan which relates to your actions regarding the arbitraging of a bet. Be prepared for all circumstances so that, if and when they occur, you have a solution to hand. Do not place yourself in the position of having to make an on the spot decision when you are under pressure, especially during in-running arbitraging i.e whilst the race is in progress. As you become more proficient at arbitraging, you will begin to realise what issues arise and what the possibilities and solutions are. Here are a few examples: What if the favourite is withdrawn after I have layed the second favourite? What if the odds on my selection change dramatically (for better or for worse) after I have placed a bet on it? What if one of my selections is withdrawn and I have placed bets on other horses in the same race?