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Saturday, July 11, 2009

Why is Sports Betting Out Performing the Stock Market?

Why is Sports Betting Out Performing the Stock Market?

I know it may sound crazy to a lot of you, but if done properly sports betting can be a much more profitable form of investing than the traditional main stream options that we are accustomed to like stocks, bonds and mutual funds.

Let me ask you this question.How is the stock market working out for you?

If you are like most, you have either seen some small returns or even worse some large losses.The majority of people these days are losing a lot of money with the poor performance of the market.

What's the interest rate that your 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 great.Now let's look at the profit potential that sports betting can deliver.

Since most people don't look at sports betting as a realistic investment vehicle, most of them end up failing.They place bets on their favorite teams, don't pay any attention to their bankrolls and wager just because the game is on television.What I want to show today is that sports betting can be lucrative if done properly.

Let's say you start out with $1,000 bankroll that you set aside for sports betting.Of course you could have more or less, but for this example I will be using $1,000 to illustrate.Now what a lot of people do is wager $100 on one game and maybe another $200 or $300 on another game that they like more.Unfortunately this is much to much to be betting on one game.What I personally do and recommend is never to wager more than 5% of your bankroll on any given game.Sticking with this example your bets should be no more than $50 per game.

Now some of you may already 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 major sports like NFL 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%.Here is how the numbers would look after 1 month.

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 Money 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 easily 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.For month two you should recalculate 5% of your new bankroll of $1280 making your new bet amounts $64.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 incredible interest rate of more than 1900 percent.

So let me ask you the question again.How did the stock market do for you? Even if you drop down the win rate to 56% or 55% you will still have exceptional returns for the year.Any way you spin it, sports investing needs to be looked at more seriously as a realistic investment opportunity.

If you would like to learn more about profiting from sports betting Pick up your FREE copy of Sports Investing Secrets : "How to Turn $1,000 into $1,024,000 in Less Than 5 Years Betting on Sports" at http://www.1stopsportsinvestors.com

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