If you’ve been in the investment world long enough, you understand that there are many forms of investments to choose from. Most people choose low risk investments that involve fixed term bonds and cash deposits. You can also go for high risk options where you have no guarantee that your capital will increase like in the case of stocks and shares, or FOREX binary markets, leveraged day trading and venture capital funds where you’re likely to lose all your money.
As an investor who wants to diversify their portfolio, I’m sure you have considered sports betting. Every time you’re venturing into a new form of investment, it’s critical that you carefully consider its risk-reward ratio. With this in mind, you can work out if that investment path will get you reasonable returns.
Case in point, if you’ve set a target age for achieving financial independence, you want to make sure that the investments you venture into help you achieve your goal.
Would you like to know how profitable sports betting is? This article will give a deep analysis on sports betting in the investment world. We’ll also address the best strategies for sports betting investments and ensure you have all the information you need to make an informed decision. Keep reading to find out how to grow your money with sports betting investment.
When Sports Betting is a Good Investment
The reason why sports betting is a viable alternative to the already existing investment options is it allows investors to realize positive and negative returns. The element of variance that exists in sports betting, backed up with the right approach makes it suitable for risk takers.
There are so many different sports that you can analyse in detail to find ways of making sports betting more of an investment and less of a gamble. Now is a great time to start as venues and arenas reopen and sports begin in a more normalised manner. For example, with Wimbledon going ahead this year it’s worth taking a look at who to bet with on tennis matches so you can ensure you’re getting the best odds.
Here are pointers on how to make sports betting work in your favor:
Use Data-driven Investment strategies
Most people get into sports betting investment assuming that their knowledge of sports is enough. It doesn’t work like that; you need statistical data relating to previous matches to get the right predictions.
Other factors to take into account include;
- Slight injuries
- Coaches’ comments
- Weather during the match
This information is crucial in establishing data-driven investment strategies.
Place Value Bets
One would assume that since sports betting has an element of chance and luck, all it takes it to randomly place bets. This is the wrong approach because it doesn’t increase your chances of winning.
Value bets allow you to profit from sports betting by wagering in undervalued markets. The fact that the general public is on a specific side is never a guarantee that it’s the winning side.
Manage your Bankroll
Do you know how much you’d make in a bet per play? You should always strive to earn more than your wager. Use bankroll management to ensure you don’t lose more than you’re winning.
The two variations you should keep your eye on are percentage and unit of bankroll. The percentage aspect helps you balance your risk against the potential wins associated with every wager you place. The unit on the other hand, ensures that you’re always using fixed amounts for your wagers.
Consistency is key if you want to make money through sports betting investment. You cannot be a successful bettor if you only do it once in a while. Besides, the more you bet the more betting strategies you learn along the way.
Are Sports Betting Strategies Better than Day Trading?
Since both sports betting and day trading are long-term investment strategies, they can be placed at the same level. In fact, experts argue that sports betting performance tends to exceed day trading’s success rate because football has fewer variables as compared to day trading.
Bettors have an easier time predicting football strategy patterns than investors do with the movement of the GBP/USD currency every hour on the hour.
Binary pair traders use charts to determine if there will be an upward or downward movement. However, there are so many variables involved that it’s more of a gamble than sports betting is.
In sports betting however, the history of a given team can easily tell you if they’ll score in an upcoming match or not. The right staking plan allows a bettor to generate more than they use in placing wagers.
Day traders also have staking plans and the most prominent is the 1% risk rule; one should never invest more than 1% of their trading capital for every trade. Even so, the myriad of variables make it hard for one to adjust their staking plans for different trades.
Sports betting is a legitimate investment alternative because it’s easy to predict outcomes. As an investor, you want ventures that give you returns higher than your stakes, and sports betting investing does just that. Remember that your football knowledge alone is not enough to make a successful sports betting investor. You need to learn the right strategies to increase your chances of winning. We hope this article will help you get started on this new investment venture.