TheSnapper

TheSnapper's Bank: $3082,84 (+1457,30% profit)
TheSnapper's Start Bank: $198.00

Mr. Kelly's Bank: $1720,03 (+ 8500,15% profit)
Mr.Kelly's Start Bank: $20.00

Shannon's Demon Value: $1630,23 ($1610,50 capital invested)
Demonic Profits:  $19,73

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A tough weekend for Mr. Kelly ... the big guy got smacked for a $300 loss over the weekend. Is he worried? Naw...He takes the good times, he takes the bad times...
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Investments

You should always invest your profits. Profits should build up and earn more profits for you. Your bank should not be stuck in Betfair if you don't need to use it.

I have about $1600 invested now. My investment plan is simple. Half of the fund into stocks, half into bonds. When the stocks go down (as they have done recently) and bonds go up, then rebalance the fund to its original 50-50% ratio.

My fund hasn't actually done this yet because it is so small and the purchase transfer size is $50. What I have started to do is to add the funds in a technique known as "dollar-cost averaging". What this is is simply using a fixed amount of investment for both stocks and bonds. Let's say $100 for each. Because the market is down, I invested $110 this week in stocks and only $90 in bonds. What this ensures is that over time you are buying more capital when the market is low and buying less when the market is high.

The combinaion of Shannon's demon and dollar-cost averaging over time produces a compounding effect, which is a special case of Kelly compounding. Your profits are re-invested, producing more profits for re-investment, etc. If you want to make big profits through investments you have to think big and think big over the long-term. Compounding is how you do it. Worked well for Warren Buffet, didn't it?