Is Sports Betting a Real Form of Investing?
Wednesday, August 26th, 2009 Subscribe To Our Feed
Sports betting, as crazy as it sounds could turn out to be a much more profitable way to invest than the traditional methods that we are use to like stocks, bonds and mutual funds.
Let me ask you this question.How is the market treating you?
If you are like most, you have either seen some tiny returns or even worse some large losses.With how the market is performing now a days most of the general public are losing money and a lot of it.
How much interest are you getting from your bank? If you’re lucky you may be getting a ridiculously small amount like 3%.I don’t know about you, but these numbers really don’t sound that promising.Now let’s look at an alternative option with betting on sports.
To start off, the reason why so many people lose while betting on sports is because they don’t treat it as a legitimate investment vehicle.They bet on games just because they are on television, bet on their favorite teams and neglect to follow strict bankroll management practices.What I want to show today is that sports betting can be lucrative if done correctly.
Let’s say you start out with $1,000 bankroll that you put aside for sports betting.Your bankroll could obviously be different, but to illustrate I will be using one thousand dollars.Now what most people do is bet $100 on one game and maybe another $200 or $300 on another one that they like more.Unfortunately this is much too much to be betting on 1 game.My personal recommendation is to wager no more than 5% on each game.Using this example your wagers should be $50.
Now some of you may or may not know this, but to break even with sports betting you need to win 52.4% of your bets using the 11/10 offered on the most popular sports like NFL football and NBA basketball.For this example, we will say that you will bet on only two games per day and use a very conservative win rate of 57%.At the end of the first month, here is what the numbers could look like.
|
Starting Bankroll |
|
$1,000 |
|
Bet Amount (5%) |
$50 |
|
|
Win Rate |
57% |
|
|
Total Games Bet |
60 (2X30days) |
|
|
# Wins |
32 |
|
|
# Losses |
24 |
|
|
Total Wins |
8 |
|
|
Juice or Vig 10%** |
2.4 |
|
|
Net Wins |
5.6 |
|
|
Total $$$ Won |
$280 |
|
|
Total % Increase |
28% |
|
|
Ending Bankroll |
|
$1,280 |
**Juice or Vig is the % that the online sports books keeping for taking your bets. Usually 10%
After reviewing the numbers from this conservative example you can clearly see that you would have profited $280 and increased your total bankroll by 28 percent.I’m sure you would agree that 28% returns after 1 month is pretty incredible, but we are not done there.Now that your starting bankroll for month two is $1280, your new bet amount should be $64 which is 5 percent of the new bankroll amount.Sticking with this example and a monthly increase of 28% at the end of 1 year you would have increased your initial bankroll from $1000 to $19,342 and an astonishing interest rate of over 1900%.
So let me ask you again.How did the stock market do for you? Even if you drop down the win rate to 56% or 55% you will still have exceptional returns for the year.Any way you spin it, sports investing needs to be looked at more seriously as a realistic investment opportunity.
If you would like to learn more about how to be profitable with sports betting, you can grab a FREE copy of my ebook: “Sports Investing Secrets – How to Turn $1,000 into $1,024,000 in Less Than 5 Years Betting on Sports” by visiting my website at http://www.1stopsportsinvestors.com
Technorati Tags: No Tags
Related Tags: No Tags
Possible Related Posts
Why Slow & Steady is the Key to Sports Betting SuccessProfessional NBA Betting SystemYour Questions Answered About Sports Betting Champ
