Why People Are Taking Their Money Out of the Market to Bet on Sports
June 28th, 2009 | 
Author: I know it may sound crazy to a lot of you, but if done properly sports betting can be a much more profitable form of investing than the traditional main stream options that we are accustomed to such as stocks, bonds and mutual funds.
Let me ask you a question.How is the stock market treating you?
If you are like most, you have either seen some small returns or even worse some serious losses.The majority of people these days are losing a lot of money with the poor performance of the stock market.
What’s the interest rate that the bank is giving you? 2% or 3% if you are lucky.I’m sure you would agree with me that these options really don’t sound that appealing.Now let’s look at an alternative option with sports betting.
Since most people don’t look at sports betting as a realistic investment vehicle, most of them end up failing.They bet on games just because they are on television, bet on their favorite teams and neglect to follow strict bankroll management practices.The goal for today is to show that if done properly, sports betting can be extremely profitable.
For this example we will use a $1000 starting bankroll.Of course you could have more or less, but in this example I will be using $1,000 to illustrate.Now what a lot of people do is bet $100 on 1 game and maybe another $200 or $300 on another one that they like more.Unfortunately this is much to much to be betting on one game.My personal recommendation is to bet no more than 5% on any game.Sticking with this example your bets should be no more than $50 per game.
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 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%.Here is what the numbers would look after the first month.
|
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.With an increase of 28% after only one month, I’m sure you would agree that these are incredible results, but we are not done there.Now that your starting bankroll for month two is $1280, your new bet amount would be $64 which is 5 percent of the new bankroll total.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 the question again.Are you still happy with the performance of the stock market? You will still experience great returns even if your win rate drops to 56% or even 55%.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
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