What is the difference between a Stock Broker and Sports Investor? To win long term betting on sports, like I have done for many years now as a professional sports investor, you have to change your way of thinking to match other aspects of your life. We all like the rush of puts and calls but I still believe there is no better rush or feeling then watching my winning picks cover the spread and cashing tickets. After you read this article, make sure to get in touch with me about upcoming NFL picks and College Football picks.
If you Want to Start Winning, You Need to Change Your Way of Thinking
When starting a new job after college, I remember the first thing I was told by friends and family was that I needed to make sure and get into the 401k program. And if I was not going to do that I needed to make sure and find a good stock broker to handle my savings to ensure I was making a return on my money. Because what good is money sitting somewhere? Right, it does no good to just sit somewhere when there are so many opportunities to make something off of your extra funds. Whether it is the lousy 0.15 percent a checking account will give you or the respectable 3 to 5 percent you can get in CDs.
What is a Stock broker?
A stock broker will put your money where he thinks you can get the best return for your money. He is not always right, and has to always be watching to change up which stock to invest on. But you stick with him because he has proven to you that he knows what he is doing. And by the end of each year, you get your statement and realize that you made money off of your investments, even after the stock broker salary you paid. Then you go and tell your friends and family about your great success story. You feel better about yourself, your friends and family are proud of you, and even better, you have some extra cash to re-invest so you can make more the next year. After taking your wife or girlfriend on some sort of romantic vacation you get back to work, call your broker and tell he or she that you want to invest in a few riskier stocks.
Do you know why people invest in the stocks that are considered risky?
Because if you and your broker are right, and that risky stock ends up having a great year and positive news, then you will make a much larger return on your investment than you would have on a safer low-risk investment.
What are the Pros & Cons of Risky vs Safe Investments
Investments with a risk level of one are low risk, safe investments. You won’t have to worry about losing money in a low risk investment, but you may not make much either.Your biggest risk when going the safe route of investing is that your investment returns will be less than the rate of inflation, which was extremely close to happening in 2009. Here is what happened, the low risk investments returned less than one half of one percent, yet inflation, which can be found using the consumer price index, was about 2.5% that year. It’s hard to live off of a half a percent of interest a year while costs are rising.If you have ever taken a finance class or maybe you are like friends or family of mine and have taught yourself principles of finance, then you are probably familiar with some of the principles of financing. Instead of boring you with them all, there are a couple that can relate to sports investing.1. Risk-Return Tradeoff — The higher the risk of an investment, the higher the expected return must be.2. Time Value of Money — A rational person is not indifferent between having a dollar today or a dollar in the future. Regardless of inflation, a dollar today can be invested and will earn a return over a period of time.
- To earn higher returns, you have to be willing to take on a higher level of investment risk, which means you may have years where you have negative returns.
- Or vice versa, if you want lower risk, then you make safer investments.
After learning about these things or refreshing on some courses you already took in school. The next logical questions would be,
- What does all of this have to do with handicapping sports to decide which team(stock) to choose?
- Why does this all mean I may need a sports handicapper to help me with the games?
- What in the world is he talking about? How do stocks compare to sports?
First, You can compare stocks to sports teams because they are both a business. When you invest in the stock market you are choosing which company you think will do the best this quarter or year. There are hundreds of companies to choose from that you can invest in out there. The way you decide, for most people, is to simply hire a stock broker and/or invest in your company 401k. Sports teams are the exact same, just like a day trader watches the spreads on stocks each day, a sports investor watches the spreads on the sports teams each day. Let’s make a list to help see it better.
Sports Investor Wins Long Term
- Day Trader watches the spreads on stocks daily, and takes advantage of high or low lines.
- Sports Investor watches the spread on games daily to take advantage of high or low lines.
- Stock broker takes large sum of money,(his bankroll) & decides the amount to risk each day
- Sports Investor takes large sum of money(his bankroll) & decides unit amount for each game
- Stock Broker loses money some days & makes a profit some days, and is perfectly okay with this
- Sports Investor loses money some days & makes a profit some days, and is perfectly okay with this
- Stock broker is hired by people who have other successful careers, but want to make return on their money
- Sports Investor is hired by people who have successful careers, but want to make return on their money
- Stock broker does not try and make all of his profit in 1 day or 1 week, instead makes long-term goals
- Sports Investor does not try and make all his profit in 1 day or week, instead makes long-term goals
Are you getting the picture here? Over the next few months I will have more examples and reasoning why you have to change your way of thinking when it comes to risking your hard earned money on sports games. To some of you, our members or more experienced players, these lessons will be a refresher course for you. Also, for some of you, this will be something I have already shared with you over the past few years. However, in my opinion these things should be talked about more often then they are, and the only reason they are not is because people will not take the time to really notice the similarities of investing in the stock market and investing on sports.
To be honest, it is also my opinion that most people would rather laugh at the thought of the term sports investing because they are afraid to talk about something they do not know enough about, and go through their betting years just doing what the majority does of betting on games they should never touch, or using a simple points per game model as a way to handicap the games. And since the reality is that all of us will have losing days or even losing weeks or months, it is easy to take those negative short term results and use it as an excuse by saying, ” See, it does not matter if you look at this from an investing standpoint or just a way to get lucky and win money, everybody loses”, when I hear that kind of talk I literally wish I could jump through the screen and explain to them that they should not think that way and would not have to only be wagering 25 bucks a game if they would take a small amount of their time and money to invest with me as their sports investing expert. Then they could spend the year with our members and I realizing that each day you can find ways to keep your risk low, so when that losing day comes along it will not hurt you to much, and when the winning days come it can turn out to be a profitable night. So that at the end of the marathon, you end up with the money you started with at the VERY beginning plus the return on your investment. As you can see I am pretty passionate about this, you will soon find out when I post my story of when it all changed for me and why.
What should you take with you from this article?
If you can take away anything at all from this article, and I could choose what that is that you decide to retain and learn to help better your success. It would have to be for those of you that are cruising through each day with the ups and downs of playing the games, and after a bad day you do one of two things. You either tell yourself you are going to give up, and that all you will ever do is lose. Or you decide that surely you cannot lose again, so you call up your guy, find out what your going to have to pay that week and decide to make the absolute worst decision and double down on your balance. How do I know? Because I was 20 years old once and did the exact same thing. Being able to admit when you are wrong or admit that you have made mistakes before is part of the process of being able to see and understand reality. So remember this, do not double down, do not go all in, and please realize that there is a way to win at this if you are willing to learn something new and have the patience of the stock broker described above.
I hope you have enjoyed this article, whether it is a fresh reminder, or maybe you are going through some of the things I mentioned to you today. There is always tomorrow if you will allow yourself to stay in the game until tomorrow. Make smart choices and do not beat yourself up on bad days, and be sure to get excited or celebrate the good ones.
Become a VIP member today and get every pick for every sports for 1 Full year. That includes NFL picks, NCAAF Picks, NBA picks, NCAAB Picks and MLB picks for 365 days. This will give you every single pick on every day for a full year and the cost is only $8.22 a day, You read that right. The VIP Investor membership may look like a sticker shock price to you at the beginning. However if you do the math you will see that you are going to receive A+ Service from an expert handicapper that tells you what you NEED to hear instead if what you want to hear. This shows me that you are serious about investing on sports and I hope the value shows you that I am serious about helping you long term.
What can you start doing now to get a head start to become a sports investor?
First step is believing in yourself. With patience and discipline comes profits the smart way. It all adds up in this marathon of sports investing. We don’t tell you what you want to hear, but instead what you NEED to hear. I know not everyone will ever get it, but I plan to spend the rest of my time here helping those that want to learn how it can be done. I hope this helps answer some of the questions coming in as to why there is a paid membership. If you have made a profit off the games every year, then your right, you do not need any help. If you have broke even or lost every year, then yes you do need some professional help. Or maybe you just need a little extra guidance to get you over the hump. Then you are the exact person I hope to help. If you have any further questions please submit a support ticket and contact us.