It is rather unfortunate, that sports betting and gaming of any kind is usually perceived in a negative light by members of the general public.
Given the irresponsible attitudes of some gambles, this state of affairs is naturally understandable. However, as any professional gamble will have you know, gambling is in fact a form of investing.
To the uninitiated, an investment is an asset or object that is acquired with the understanding that additional value can be derived from said item. This additional value can come in the form of appreciation or additional cash inflows.
When viewed objectively, sports betting shares the same concept as investing. A sum of money is used to purchase an asset i.e. place a bet with the objective of generating additional value i.e. winnings.
While this may seem like a stretch to some, investing and gambling share many fundamentals. The basis of the idea remains the same with the final intention being the creation of value.
So, let’s take a look at how punters can treat sports gambling just like an investment.
1. Diversifying your bets
Even the green of amateurish investors know that diversification is a critical part of investing. In financial terms, diversification involves the allocation of capital i.e. money into a series of different assets.
This minimizes the investor’s total risk exposure and reduces the portfolio’s volatility. In terms of gambling, placing your bets on several different sports minimizes your initial risk when compared to putting it all on a single bet.
For example, splitting your initial investment between horse racing, soccer, and a variety of other sports means that you are not risking all of your capital on the outcome of a single event.
Even if you do lose out on the outcome of a soccer match, you can fall back on your “portfolio” of other bets. Thus, allowing you to reduce your risk exposure whilst ensuring a higher probability of you actually turning a profit.
2. Taking a data driven approach
Investors rely on data of all kinds when it comes to making a decision on what to invest in. The exact same concept can be applied to placing your bets.
Horse racing for example is one of the most exciting yet unpredictable sports that you can place a bet on. The favourite may not be performing at his best or the jockey may be under the weather.
All of these factors are often ignored by amateur punters who try going for broke on a favourite horse. A skilled gambler will tell you that you’ll need to do your research before making a decision.
Factors such as fitness, past performances, and track conditions can and will affect the outcome of a race. This is why you will need to adopt a data driven approach when it comes to placing your bets.
Sites such as twinspires.com allow you to access past performances, place your bets online, and keep an eye on the latest results. All of which are essential for the punter who is looking to invest in horse racing.
3. Staying objective and keeping emotions separate
In the high-paced world of sports betting, it can be all too easy to get caught up in the mad rush that follows. This is why emotions have no place in the betting arena.
One of the most common mistakes made by amateurs is attempting to strike it big in one fell swoop.
Whether it’s putting everything on a single bet or trying to break out of a cold streak with a series of increasingly reckless bets, it’s important to stay cool and remain objective at all times.
As a rule of thumb, only bet what you’re prepared to lose and know when it’s time to take your winnings home or when you should cut your losses.
Treating your bet as a pure economic decision helps keep emotions at bay and ensures that you stay focused at all times.
Plus, don’t forget to consult Twinspires and check if gambling is legal on the state or country where you live.
Sports betting should never be treated as a gamble of any kind. Instead, it should always be a thoroughly planned and calculated decision backed by solid research. This ensures that you can turn a profit instead of racking up massive losses.