Investors across the board, whether your an investor in market equities, or sports investor specific sports, both have common fundamental investment philosophies that apply.
Some of the most important factors and best tips to becoming a profitable investor include:
- Don’t let emotions dictate investment decisions.
- Fundamental data analysis and research will show you the value who to invest in, and who to avoid, and at the very lease, give you an edge.
- A lot of information is intangible and cannot be measured (ex. teams motivation and drive on game day). The quantifiable aspects of a company or team, such as profits and wins are easy enough to find and quantify, but always work into your formula considerations on qualitative factors, such as new coach, new quarterback, weather conditions, team emotions on game day, etc. Use a combination of tangible and intangible aspects when making your investment picks.
- Money management or bankroll management
The latter, bankroll management, is one of the most common areas sports bettors and punters ignore, yet its one of the most integral sports investing areas that makes the difference between a bettor and a profitable sports investors.
If you are betting more than what your bankroll allows, you are a problem gambler and may need to seek help. No knowing even basic money management skills, betting on sports is one of the key differences between a sports investors and a sports gambler. A sports gambler is likely throwing his money away. Unfortunately, every sports seasons, sports bettors throw their money away whether they recognized the have gambling problems, or not.
As an avid sports investor, I find it funny that I meet many people who apply good money management practices are work and at home, but don’t apply the same economic principles to their sports betting. They make their NFL picks or buy an nba playoff picks package, and simply throw down the cash at their favorite online sportsbook. They apply no rime or reason to their picks, other than its their emotional favorite.
Think about it. No real estate investor would put his money on a property having clear chance of losing its value the same person would bet 35% of his retirement or rain day fund on a single game.
Fortunately this losing behavior does not last long, and most learn the harder way by losing huge sums before making any profits.
Another factor that plays into losing bets is that many sports bettors get greedy when betting on college football or NFL spreads. They would happily accept $150 as annual profit on their bank investment of $2,000, but refuse to consider $2,000 as an acceptable seasonal profit from NFL wagering. But if you chroniclize profitable sports investors, you’ll find they have a Warren Buffet approach by picking value bets, and making smaller yields over the months, but cumulating to phenomenal profits over time.
Tip 1: The first tip, before anything else, to good money management in sports betting is discipline.
The average sports investor is disciplined to set a specific amount of their bankroll as their maximum amount of wagering money for a given season. On average this is around 20-25%. This discipline approach will ensure you don’t go over the limits…in good times and bad.
Tip 2: Establish your personal unit amount
To start managing your bankroll more efficiently, you need to decide what your betting units are before the season starts. If you subscribe to a handicapper service, or follow an expert handicapper, they may provide you their ‘suggested’ unit value, but this area is something more personal where you need to define your own unit value. Its a custom value that applies to your investment portfolio and bankroll. Sure an investment advisor can recommend how much every month you should put into your 401K or RRSP’s, but its your personal and financial situation that should decide what is best for you.
Tip 2: Know your opening bets.
Calculate the total number of bets and divide it by weekly wagering budget. This will give you unit price that you can afford. Now use it as a multiplier for calculating the total amount that you can bet in a week on a game or on any college picks you purchase. Staying disciplined will mean that you are not rejecting your own analysis and money management strategy due to emotional investing and betting.
How to bet and invest all season long? Simple – stick with your bankroll and your money management strategy. Your bankroll will increase or decrease each week, and over time selecting the winning bets, you’ll find incremental gains in your profitability, and yield.
And similar to investing in equities and the current economic conditions, you will need to adjust your strategy week by week or month by month. Variables that influence the teams outcome, whether its a slow start to a season, a new trade or new coach, can all impact the ingredients on how you’re making your sports picks. An expert handicapper will know this and will…or should at least, adjust for this, but let their track record and performance over time dictate how prudent they are.
A sports investor does not have to be a mathematician to do proper bankroll and money management. It takes patience and discipline.
This simple money management system will give you a better edge to increase your bankroll with every passing week in whatever sports you invest into, NFL betting, MLB betting, soccer betting, horse race betting, etc.