Note From Kalen: As you all know, I allow all kinds of advice on investing. While sports betting and speculating can be highly risky, I like to show opinions like this to give a full spectrum of the investment world, including forms that I don’t practice. Plus, it’s fun to read about it. Enjoy!
There are several similarities between sports betting and speculating on the stock exchange, and mastering the former can help you thrive at the latter. Both involve choice, risk, fear, and greed, linked by the tantalizing prospect of making a significant return of your investment if successful. In essence, they both reward you for successfully predicting the future and punish you if your predictions are poor and you do not practice correct risk management. If you can succeed in the intricate world of sports betting, you should be well placed to flourish as an investor.
The old adage when it comes to gambling is that the house always wins. It has an edge and most gamblers should expect a negative return in the long run. Conversely, investing in the stock market carries an expected positive return over the long run, so the odds should be stacked more in your favor when it comes to investing. But investing in speculative markets like Bitcoin can be a risky business due to the volatility of the cryptocurrency market. Some individuals that make a fine living from wagering at respected sites like Bookmaker and the secrets of their success can help you flourish on the stock market and encourage you to err with caution when it comes to speculative investments like crypto, micro-cap pot stocks et al.
First off, successful sports bettors practice sensible bankroll management. They do not chuck their entire pot of cash on the outcome of one event and cry if it loses. That is a sure fire way to land yourself in grave trouble. Professional gamblers are cautious individuals, they will do everything possible to minimize risk and they will hedge their bets in order to cover themselves on a number of different outcomes. That is after analyzing a raft of data and gaining a strong familiarity with the market.
Many think of sports betting as a short-term event, whereas investing is a long-term pursuit. But many gamblers make substantial profits by playing futures markets that develop over the course of several months. The Philadelphia Eagles were priced at +5000 (50/1) to win the Super Bowl at the start of the 2018 NFL season and a $1,000 bet on them would have resulted in a $50,000 profit. Before the Super Bowl, the Patriots were 1/2 to beat Philadelphia. You could put a $10,000 stake on the Pats before the game and generate a significant profit regardless of the outcome.
That type of hedging can be extended to a huge number of teams over the course of a season, as the lines on them change on a weekly basis depending on the results. Through hard work and a solid understanding of the market, many bettors beat the system and win big. Hard work, preparation and determination set them apart, and those skills come in handy among investors. Caution is also an important trait: successful bettors do not wager when drunk, angry or chasing a loss, and you should not be investing at those times either.
Cautious bettors would be wary of anything too speculative and volatile, like cryptocurrencies. If you are excited by the prospect of making considerable profits by speculating on Bitcoin, learn from the successes enjoyed by pro gamblers that hedge. Spread your assets around, so that all your eggs are not in the Bitcoin basket. When it comes to Bitcoin, short sell, look at perpetual swaps and check out the ICO market. Play the fluctuations in its value like the fluctuations in futures odds on a sports team, making sure you trade in both directions. Hold when the market goes up, sell off as high as you can when you expect the price to drop and buy back at a lower rate in order to achieve an overall gain
Research is imperative for anyone making a success of sports betting, and the same is true for investors when it comes to speculative markets like Bitcoin or blue-chip stocks. Read as much news as possible, become an expert and reap the benefits. Sports betting help you become more financially literate, better at managing risks and more adept at spotting opportunities, and it can help you succeed where many fail at speculative investing.