Bad Loss - Good Lesson

Reviewing my spreadsheet, as I tend to do from time to time, I am constantly reminded of my worst day on Betfair - New Year’s Day 2007. I placed an ill-advised bet of an amount that I was not comfortable with on a football game where I had no edge, and of course the bet lost. £5k gone. Although it was money that I could afford to lose after a stellar 2006, it still wasn’t something I was happy about. I remember feeling overwhelmed with tiredness and having to take a nap - which is not something I do very often.

What possessed me to gamble like that? I think it was simply that I wanted to get the year off to a flier, and so anxious was I to do this and get some profits on the board, that I impatiently gambled instead of invested. A stupid impulse which completely backfired and which took me a little over 7 months to recover from.

Early 2007 was not good at all. Three losing months out of four, and a maximum drawdown of over £16k in mid-May before I was able to turn things around. Looking back on those days, I’m sure there was a subconscious element of chasing involved, and it was only when I fully accepted the losses that I was able to regain my focus and start clawing my way back.

But sometimes these losses can be good things, as strange as it may seem. They are a painful reminder of what works, and what doesn’t work, and of the importance of staying disciplined.

In a way I am glad that bet lost.