Text by Doug Wootton, Sport journalist.

If you’re looking at making money online and can’t decide between day trading and value betting, then look no further. With the right knowledge and application, both can offer a substantial investment but crucially you must decide which is best for you. Before getting into expected value, variance and weighing up trading platforms and currency exchanges, let’s go over the basics. Soon you will be able to see which is the best investment for you.

Day trading vs value betting

Day trading

What is day trading?

Day trading is a relatively new form of speculative trading made possible through the internet revolution. It allows regular members of the public to trade with their own money on one of many platforms – something that previously only brokers and financial institutions were exclusively able to do. Any purchase and sale of a security within a day is considered as an act of day trading.

It is viewed with trepidation by traditional investors, partly because it’s the ‘new kid on the block’, but also down to the ‘get rich quick’ connotation it has accumulated, as some shady online companies have exploited those with a lack of knowledge into blindly parting with their cash, offering little to no return.

What are the most popular forms of day trading?

The Foreign Exchange, also known as Forex or FX, has become synonymous with day trading. Stock markets are also traded, but Forex trading remains the most popular.

How does day trading work?

As the FX is the most popular, it’s best to focus on this market. In short, trading on the Forex consists of betting on the increase/decrease of a currency against another currency, which can be done 24 hours a day, 5 days a week. This can be done with an app, browser or software and is right now literally clicks away on your phone/laptop.

stock trading and trading strategies for forex traders at the stock market

As can be expected, day traders focus on short-term market moves.
There are hundreds of techniques used by traders, some fundamental ones include trading the news – responding to corporate changes/earnings, international and national conflicts, key economic stats released, polls, government announcements etc. These sudden changes often lead to swings in the market, resulting in profit/loss.

Others get more sophisticated using bespoke software which place trades automatically, known as High Frequency Trading – however this is better suited for an advanced trader.

How much money can you make day trading?

As you may expect, there is no set formula for Return on Investment (ROI). Your bankroll, ability to read markets and event consequences, dedication, resolve, technique and ultimately luck will be a big deciding factor in whether you make thousands a month or lose your bankroll in days.

Trading stocks as a financial instrument

Truth is most traders consistently lose (some studies show that around 90% lose), but that doesn’t mean you can’t be in the 10% of traders that win. Most trading platform offer paper trading (fake money) to trade with initially so you get an idea of where you’re at. This is highly advisable for all forms of trading for beginners – it’s not the type of thing you dive into and unfortunately there are lot of companies ready to take your money to give you tips, which shouldn’t be trusted.

Those traders making money usually make a yield (profit per pound staked) of around 1% to 5% a month, but as all traders will know volatility is part and parcel of trading and you must be able to take the rough with the smooth.

Value betting

What is value betting?

Value betting is when there is the option to profit off odds of an event which don’t reflect the true probability of an event (there’s plenty more information on value betting here).

Value betting vs currency trading on the forex market

A simple way to grasp the concept of this is if let’s say Man City play Grimsby (Man City being one of the best teams in the world against a lower tier English side) and Man City were to be given odds 2/1 or 3.00. i.e. you place £1 and should Man City win which you’d almost guarantee to happen, you’d get your £1 stake back and £2 from the bookmaker, like printing money.

Now not all value betting options are as clear cut as this, but when you start seeing the probability of an outcome against whether the odds accurately reflect this or not, is where you begin to see value betting investment options. Obviously not every bet will win, which is why volume is important.

Key terms in value betting include expected value (what can you expect to win per bet), real value (the actual profit/loss of a bet), variance (difference between the expected value and real value), but there is a load more of information on value betting here.

What are the most popular forms of value betting?

Any markets which are available for regular betting. Value betting is usually targeted on traditional win/lose/draw markets in football, or winners of games in other sports.

Popular forms of value betting and financial markets

Ultimately it can be any sport or market where the value bettor is confident that they have an edge over the bookmaker’s odds, whether it’s from data, sharp book odds, information or other means to decide that the odds don’t reflect the probability of the outcome.

How much can you make value betting?

As with day trading, there is no set formula for ROI as bankroll, frequency of bets and luck plays a part – some months will be more fruitful that others.
Unlike day trading, there are platforms which can legitimately identify value bets to take out the hours of work required to find them yourself. This can obviously increase the amount of value bets you can place.

The ValueBetting service has shown to make an average yield of 3%.  Ultimately, it is up tp you to choose which is the best investment. But if we were to give you a little hint on which method is the most fun – then value betting is the way to go.

  • Initial investment in €
    Number of value bets placed per day
    Betting days per month
    Estimated hourly profit
    Monthly ROI

    Your total profit per month

Curious to see real results from ValueBetting users? Join the RebelBetting community.

Day trading vs value betting comparison

Day trading Value betting with ValueBetting service
Required bankroll £500 to 100,000 £200 to 10,000 (+ money for the cost of having a subscription)
Average time (per trade/bet) 10 to 180 minutes 20 – 60 seconds
Monthly yield 0-5% 1-5%
Prior knowledge Extesive prior knowledge Low prior knowledge
Potential winning per month Up to £10,000 Up to £5,000

Frequently asked questions- alternatives to day trading forex trading

Absolutely, retail traders can make money day trading on the foreign exchange market, but it requires dedication, knowledge, and a bit of luck. While most traders might lose in the beginning, using strategies such as trading the news or High Frequency Trading can help you stay ahead.

Remember, paper trading with fake money is a great way to start without risking your actual funds.

A person learning about how to trade forex

Value betting focuses on identifying mispriced odds in sports events to turn a profit, whereas trading on the New York Stock Exchange involves buying and selling shares of publicly traded companies.

While both require an understanding of the market and strategic decision-making, value betting can often be more straightforward and quicker for those with limited prior knowledge.

It depends on your investment goals and risk tolerance. Exchange Traded Funds (ETFs) offer a more stable, long-term investment by diversifying your portfolio with a basket of assets. On the other hand, swing trading in forex involves more frequent transactions based on short-term market movements, which can be more profitable but also riskier.

Beginners might find ETFs easier to manage, while more experienced traders may enjoy the potential gains from swing trading.

A swing trader investing in EFTs

Value betting generally requires less time per transaction, often just 20-60 seconds, thanks to automated platforms that identify value bets for you.

Day trading, especially in the forex market, can take anywhere from 10 to 180 minutes per trade due to the need for constant market analysis and strategy implementation. If you have limited time, value betting might be a more manageable option.

For day trading, particularly in forex, you typically need a larger bankroll, ranging from £500 to £100,000, depending on your trading strategy and risk tolerance.

Value betting can be started with a smaller initial investment, around £200 to £10,000, plus the cost of a subscription to a value betting service. This makes value betting more accessible for those just starting out.