It sounds nuts, right? I mean, betting in sports as an investment? There’s no way! Sounds like taking hard earned money and throwing it right down the toilet!
I can just hear the reactions and understandably because it does sound a bit off on the face of it. But, there’s another side to consider. In this article I will offer some insight as it relates to sports investing, or sports trading as it’s known, so that you can make a well formed decision as to whether it’s right for you.
Take a look at the recent meltdown in the stock and futures markets lately. We have incredible instability on a daily basis the likes of which have not been seen before in quite some time. You know something’s not right when 200 to 500 point daily swings are the norm. The volatility recently is off the chart and probably not a good place to be unless you really know what you’re doing.
So, with that said, let’s look at the sports market. And before I get too far into this, I’ll say that the only way I’d recommend someone pursue something like this is with a firm like 10Bet, specialized in this sort of thing. Especially if you’ve never bet on a sporting event before. Firms like this make the picks for you so there’s no guesswork.
OK, so the sports market has huge liquidity without the extreme volatility of stock and futures markets, relatively speaking. The sports investment firm can mitigate the risk because of the information network they’ve established with traditional handicappers, keeping tabs on casino moves, syndicate plays, steam plays, as well as the application of computer algorithmic models. Most of the best firms are seriously plugged in to the sports betting world and they have the information that the average person will never have. I hate to use the term “inside information” because it sound so cliche, but they have it and it’s this k?ind of information that many times makes all the difference.
Let me draw a comparison between a stock investment firm and what these guys do. A stock investment firm looks at thousands of companies to determine value against current price. A sports investment firm does the same but typically with only Division 1A college teams and pro teams. Some even specialize further into individual sports as this reduces exposure in keeping up with too many teams. So, their collection of teams is their “sports exchange” and they know these teams better than the teams know themselves. They know what will make a team decrease in value (lose) and can determine when they will rise in value (win).
Interestingly enough, these firms are seeing many more stock day traders and forex traders join their service than ever before. Many have jumped in due to radical nature of the equities markets as mentioned above. The difference for them in day trading is they don’t have to make any decision to sell. They simply have to open the trade and wait for the outcome of the game. In the financial markets, knowing when to sell is an art in and of itself. Sell too soon and you rob yourself of profit. Sell too late and give all your profit back. In the sports markets, all of this stress is alleviated.
When dealing with some of these firms such as 10Bet, be prepared for them to interview you as much as you interview them. Most are not interested in dealing with “action junkies”, or those who simply bet sports for betting’s sake. These firms are in it for the long term and expect you to be as well. They want to see you succeed and because most have a monthly, re-occurring billing model, it’s in their best interest to see you do well. For the most part, they wish to work with people who enjoy making reasonable profits and are not so concerned in trying to break Vegas.
Sources: theguardian.com / bloomberg.com