(5) Money Management
It is normally an easy and straight forward process to deposit money in bookmaker accounts, but withdrawing may often be quite a challenge!
A good number of bookmakers charge fees for certain methods of withdrawal transactions, some pay out by cheque only, or allow only limited withdrawals over a period of time.
Other bookmakers offer only a limited number of currencies, such as Coral who only accept British Pounds (GBP), but, of course, also happen to belong to the fraternity of largest, oldest and most trusted UK bookmakers, which we have already seen are a vital constituent to any arber’s portfolio of bookmakers.
Betting in different currencies may result in foreign exchange losses, but on the other hand also result in foreign exchange gains.
Another risk is that it is easy to lose track of funds when money is spread across a multitude of different bookmakers, each account perhaps having a different user name. Having to login using different IP addresses, makes accurate accounting not only necessary but ultimately increases the risk of human errors.
- The only solution is excellent and very detailed accounting which has to be in place from the very first transaction and include every transaction made from that point onwards. Likewise, as previously mentioned, the terms and conditions of every bookmaker need to be known in every detail.
Arbitrage betting is therefore only suitable for people who find pleasure in bureaucracy and order.
(6) Inexperience and Lack of Discipline
Most of the above problems occur mainly due to inexperience and/or a lack of discipline. The largest losses occur because of ignorance in conjunction with impatience.
- To become a professional arber, you have to accept that at the beginning progress will be very, very slow and tricky. The learning curve will be steep and only the most sure-footed will reach the peak.
An apprentice arber needs to be willing to accept and commit to a long learning period, until everything is understood and the market becomes more and more transparent.
It is said that professional arbers have a learning period of three to five years.
It is vital to exercise patience for the duration and you should also not depend financially on any arbitrage profits, but have another day job until you can afford to make a possible switch.
- Initially arbitrage trading is carried out without money. Get used to finding arbitrages and play through all the necessary steps with no money involved.
- The first steps are setting up accounts with multiple bookmakers and organising accounts with electronic services such as Paypal, Neteller and Skrill (Moneybookers), as with all other payment providers bookmakers accept.
- A good start in the art of arbitrage is to try matched betting for a while and cash in the various available bookmaker bonuses to increase your pot of money available for arbitrage.
Matched betting will also teach you how to bet on both sides of an event and extinguish the risk of losing money.