Why People Are Taking Their Money Out of the Market to Bet on Sports
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 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 the potential that sports betting can offer.
To start off, the reason why so many people lose while betting on sports is because they don’t look at it as a legitimate investment vehicle.They bet on games just because they are on TV, 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.
Let’s say you start out with $1,000 budget that you set aside for sports betting.Your bankroll could obviously be different, but to illustrate I will be using one thousand dollars.Now how must people bet is they will bet $100 on a game that they kind of like and another $200 or $300 on another game that they like more.The problem with this is that this is way too much to have at risk on 1 game.What I personally do and recommend is never to wager more than 5% of your bankroll on any given game.For 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 football and basketball.For this example, we will say that you will bet on only 2 games per day and use a very conservative win rate of 57%.After 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.With an increase of 28% after only 1 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 2 is $1280, your new bet amount should be $64 which is 5 percent of the new bankroll amount.Staying 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 unbelievable interest rate of over 1900 percent.
So let me ask you the question again.How did the stock market perform for you? Even if you drop down the win percentages to 56% or 55% you will still have exceptional returns for the year.No matter how you look at it, sports betting needs to be given a serious look as an 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