Mention the phrase 'sports betting' to someone that doesn't bet and the first thing that pops into their brains is the word 'gambling'.
To the uninitiated, betting on sports is synonymous with adverse risk and insurmountable odds.
Dabble in real estate and you're labeled an investor.
Buying and selling stocks and bonds makes for a shrewd speculator.
Being involved with options or Forex qualifies you as a trader.
But as a sports bettor you are looked upon as a....
.... a degenerate gambler!
We bettors realize how laughable this is, especially when you consider that sports betting, when approached with an intelligent investment mindset, will kick the shit out of any other so called 'traditional' investment opportunity out there.
Why Sports Betting is Such a Powerful Investment Vehicle
It's all about financial leverage.
Take real estate for example. If you put 20% down on a $500K piece of property you are controlling a $500,000 asset with only $100,000 of your own money.
Taking this a step further, instead of plunking $500K on one piece of real estate, an astute investor would take that $500K and buy five properties each worth $500,000 using $100K as a down payment for each one.
By doing this, the investor has managed to leverage two and a half million dollars worth of real estate with only 20% out of pocket. When the properties are sold for a profit, the investors ROI of the original $500K will reflect that leveraged position.
How does this concept of financial leverage work with sports betting?
Let's say you take a $1,000 bankroll (BR) and are able to win 55% of your wagers betting an average of 3 games per day. That would be 83 plays per month or 996 plays for the whole year.
If you set your bet size at 5% of the bankroll, your initial wager amount would be $50.
At the end of each month, it would be both appropriate and advisable to maintain the bet size at the same 5% of the ever growing bankroll.
For example, at the end of the first month the BR would have grown to $1241, which would make the new bet size $62 (5% of $1241).
Maintaining a 55% winning percentage and recalculating the bet size every month for an entire year would turn the original $1,000 into $13,314.
That's a 1,331% ROI.
Such a high rate of return on your money can only be possible by using leverage. This is using the concept of compound interest otherwise know as The Ninth Wonder of the World.
Just like the real estate investor who managed to control $2½ million worth of assets by only risking 20% of that number (a 5:1 leverage ratio), the sports bettor is doing the same exact thing....
.... but on a much bigger scale!
On the surface, it appears that only $1,000 was invested to win the $13,314. This isn't really what happened though.
If you were to add up all of the bets made during the entire year, you would see that they total up to $212,397.
This means that the original $1,000 BR was responsible for churning over $212,000 through the sports betting marketplace.
That's a 212:1 leverage ratio!
I am not aware of any other form of investment know to woman or man that can come even close to approaching that type of financial leverage.
Although that 1,331% annual ROI is impressive, see what would happen if you had the discipline and tenacity to carry this out for a 2nd year.
Why 95% of Sports Betters Will Never Be Able to Pull This Off!
It's all about mindset really.
Most all sports bettors are a lot closer to having a 'degenerate gambler' type of mentality rather than an 'investor in the sports betting marketplace' one.
The line between the two approaches is not always so clear cut but, in the sprit of keeping things simple, the two main differences are....
- The gambler focuses on 'picks' and attempts to take advantage of those picks as quickly and in the most profitable way possible.
- The investor's focus is using sports betting as an efficient investment vehicle that uses 'picks' as part of an overall wagering strategy.
An investor in the sports betting marketplace is only concerned with how much money he can accumulate by season's end while the gambler's focus is on how much he can win TODAY.
Notice where the 'focus' is.
The gambler is constantly riding on that emotional roller coaster that takes him from pure ecstasy to the depths of despair, all within a 3 hour time frame.
The investor doesn't give a rat's ass whether his picks win or lose on any given day. His only concern is that his plays win above the break-even point over an extended period of time.
While the gambler is continually over-reacting to wins, losses and final scores, the investor looks at the wins, losses and scores with an air of detachment.
He conducts his sports betting activities with a ruthless and relentless business approach.
He plays the game on the same field as the oddsmaker because when he can do that....
.... HE KNOWS HE CAN BEAT HIM!
The fact of the matter is that the typical sports bettor doesn’t have a 'punchers chance' of ever winning any serious money.
So what's the real truth about sports betting?
The overwhelming majority of sports bettors do not possess the proper mindset necessary to ever become consistent winners.