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What is Sports Investing?
Maybe you’re like me years ago and never heard of the term “sports investing.”
Before I learned about sports betting, I placed a large bet on a game I knew would hit and a few other nice looking games. To finish off the day, I’d place one or two small bets for shits and giggles.
I quickly learned that this is not a winning equation. It’s an easy way to get desperate and call a scammer. Sick of losing all the time and taking cash advances to pay bookies, I started searching online.
I worked nights at the hospital. While some nights were extremely busy, others gave me more time than I could handle. Sometimes I thought I would find the end of the internet.
I found that the internet is full of sports gambling sites. Most are trying to make a quick buck off of you before their website and worthless information disappears. Others are just sportsbook affiliate farms, offering banners for all possible sportsbooks and online poker rooms. These guys want to make money off their players’ losses without giving anything of value to those who click on one of those sportsbooks.
Finally, while looking for betting strategies, I found certain sites that talk about something called sports betting. These sites talked about betting a unit of their funds and preached that there is no such thing as a LOCK.
Does sports involve gambling? You bet it is!
That’s what makes it so much fun.
Sports betting is designed to describe a disciplined method of betting on sporting events. The principles of sports investing teach you how to manage your funds to maximize your profit while minimizing your risk.
When you first decide to practice sports betting, you need to determine how big your bankroll is. Your bankroll is the amount of money set aside for your action over the course of a season. This money must be funds that, if completely exhausted, will not affect your living situation. Sports betting losses should never affect the bills you have to pay or any other life necessity.
When I first learned about sports investing, I decided to test this theory. After all the other schemes and scams I found on the internet, I was a little skeptical. However, this information is compiled from multiple sources.
For my jump into sports investing, I bankrolled myself $1,000. The size of my bankroll directly determined the size of the bets I would place on my games. This amount is called a unit. The bottom line is that a unit is equal to 5% of your bankroll. You can use 3%, 5% or even 10%. It all depends on how aggressive or conservative you want to be.
In my case I decided to go with 5% or $50. Now I didn’t just go out putting a unit on every game. I started my week researching each game before making my final decision. My research involves more than watching NFL countdowns and SportsCenter. I use multiple online sites and offline resources before placing my bets. Handicappers and sports investors are known to put 10-40 hours a week into their picks.
After I do my homework and have a short list of games that I feel are the best games on the board for one reason or another, I go and put the same unit on each game. By placing this unit on each game, I reduce the volatility of the sports betting market by reducing my exposure to the juice involved in losing bets.
Placing a unit on the 3-5 games I researched gives me the ability to profit by hitting 55-60% of your bets. If I hit 2 of my 3 games during the day’s games, I get $45 (using $50 as the unit). If I win the game on Sunday night, I’ll make $95. If I end up on the losing side of Monday’s football game, I still have $45. But I win, I get $145 for the weekend.
In the example above, I won 3 of my 5 bets that weekend. That’s a 60% win percentage. As you can see, if you can average that winning percentage over an entire season, the only thing that limits your profits is the size of your bankroll and unit.
One final rule of thumb in sports investing is to never risk more than half of your money at any one time. You should always have enough money to give back if you follow this golden rule.
Like any hobby, sports investing is not for everyone. I can’t make a masterpiece out of a wooden bench, and some people just aren’t as good at sports betting as others. While most people lose at sports gambling because they are undisciplined and have no sense of money management, some people are better than others at picking winners and doing their homework. If you find that you are always losing, you may want to re-evaluate your choice of hobby. You may be more practical with a radial saw.
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