What are the things that are considered constant? Well, there’s the cliché that change is the only thing that is constant in this world. Although that is true, there is also one constant that people tend to forget the specialist stock market investment or the betting exchange’s movements are unpredictable.
In a lot of cases, you can only do so much and the outcome is just binary either you win or lose your bets or trades. There is one strategy known as Scratch Trades and it is a pretty good tool to use whenever you want to mitigate your losses. So, what exactly is it?
What is a Scratch Trade?
To put it simply, a scratch trade is just where you lay and back at your bet or selection at the same price. In other words, no gains=no losses. People back in the day tend to not care about scratch trades because they are tedious to do. However, using an online platform will alleviate the stress of creating such a trade.
In fact, many professionals in the field would tell you to make as many scratch trades as possible so that you won’t lose any profits. But, I am here to tell you that, well, you can potentially lose your profits. Hear me out on this one.
A scratch trade is typically done whenever you feel that the general consensus or the market movement is not in your favor. However, you could lose your profits if what happens is the reverse of what you initially thought. For instance, if you feel that you’re losing, but you end up winning instead, then your scratch trade was all for naught.
Hindsight 20/20, am I right? Reading the last paragraph, you think to yourself, “man, if I could’ve made the trade differently”, but that is always the case. We only think that we should’ve done one thing only after it has been done. But, I am willing to bet that you’re almost uncertain before the race finishes.
That is why the scratch trade exists. It is to safeguard you from losing a lot of your assets. This is not to say that you won’t lose at all. This is to say that you can potentially safeguard yourself from heavy losses.
Many people who do scratch trades only for the outcome to be positive in the end tend to not do scratch trades anymore because of that. But, to be honest, it is a mistake.
Half-Baked Trades Won’t Cut It
When you want to win big in trading, you can’t make half-baked decisions. Either you do one strategy or you don’t. There is no “in between”; no middle ground. Remember that in betting, you might lose a tick or two, but holding on to your bets without changing it could potentially not bode well for you in the end.
This is the time that you should think about doing a scratch trade or not. It is all or nothing man, never go half-assing it.