I was wondering if I have cash savings to invest is betting Sports really that profitable after you factor in the house (bookmakers) edge. If you had let just say $100k theoretically would would you be better off investing in Fast Growth Stocks with 5positions and a 8% stop loss and 20% profit target??? getting into equities During a bullish market and staying in cash or selling short during bear markets. Historically S and P 500 has averaged roughly 10% annually since with multiple nearly 50% downturns since the 1950's. Or would you be better off moving to Vegas, rentin a shitbox apartment next door to the Hilton Superbook? Even with Cash magician 6.65% (top performing) Roi over 1891 picks the bookie has the edge of 2.5% To 5% depending if your betting -105 or -110 odds generally excluding moneyline sportss such as MLB and others. Want to hear some thoughts and opinions on this.
IF you have the discipline, I think sports betting is unquestionably the better investment. In addition to the discipline, you have to have a lot of heart if you are a US citizen. You're options as a US citizen if you want to make a killing are:
Move to Nevada.
Move to Canada (or pretty much any other country).
Wait until online sports betting is allowed in America - which I believe it will be someday, but who knows when.
Not many people will want to take one of those options. But back to my first point - you have to have a ton of discipline to succeed. One of the reasons that sports betting is so dangerous is because it offers the possibility of a 5,000% return overnight. You have to be disciplined enough not to chase that return.
I wouldn't put a nickel in the rigged stock market especially after that "industry" has pulled the biggest financial heist in the history of the world on all of us. Keep your money as far away from those vipers as possible. They make Vegas wiseguys look like girl scouts.
I would bet there are more stock brokers betting illegally on sporting events than sports handicappers legally investing in the stock or commodity markets. This may be one indication.
Don't mean to rain on the parade, but there are a few reasons why and how investing in the stock market is better than investing in sports:
1.They say that you can make 10% in the stock market, but if you know what you're doing, I mean really know what you're doing, you can diversify into many small cap stocks, an net 20-30% per year. In this respect, time must be dedicated to learning, just like with sports betting.
2. The stock market is efficient with no juice, unlike the sports betting market. If you know what you're doing and you win 50% of the time, you break even, unlike in sports betting.
3. Once you're invested in stocks, you can let it ride. Once you learn how to invest in the stock market, picking winners is a science and can be much easier still, than picking sports games. You can continue to work at a daily job without having to worry about placing bets.
4. Your investment is limitless. Sports investment is generally limited to maybe $100, 000 comfortably, while one could still invest millions in small cap stocks.
5. You only need to rely on yourself, and don't need to buy advice. This is the same as sports betting, but there is more information for free on the internet.
The idea of having a large amount of money in the market and watching the dow drop to 6500 is horrifying. Its impossible to short the market when the government bails out the crooks. You would have to be one of the crooks to survive this type of market over a long period of time.
With all due respect I believe that point number 1 is completely delusional. If you can show me one guy who can do a 30% return in the stock market, using day trading, long, short, options, bonds, anything you want really - consecutively for three years in a row, I would call you a God. The days of the 12% return being "good" is gone. Good is now 7-8%. Granted, I know brokers who are doing 15-20% through covered calls, but that's nearly half of 30%. I adamantly believe the 30% annual return in the stock market is laughable.
Moreover, if you are trading with the goal of having a 30% annual ROI then you are probably taking on far more risk than any disciplined sports bettor will ever take on.
I suppose. The only way I see it possible is should you buy into an IPO or some small cap mining stock and generally get lucky. When that happens percentages aren't even part of the game anymore, it's more or less like winning the lottery.
On a personal level, I'm licensed to be a broker in Canada, and I come from a family of stock brokers. I currently am not a stock broker, nor have I ever had control of my own book. Though I have worked in brokerages houses in the past. My family who currently is still active with their business has told me on many occasions that sports betting returns far outweigh anything you would ever see in the stock market. Granted, the whole principle of sports betting is closer to day trading - and requires a higher tolerance for stress at times ect. There's psychological advantages I think to being involved in the stock market, if you had to be involved in one market or the other. There's probably a bunch of others that I'm not considering as well. I suppose your ultimate upside with small cap stocks would be higher as well, because you could as I mentioned win the lottery essentially. But based on pure annual ROI per portfolio, it's not even close.
Forget the stock market... Here you are betting on losers not winners. You can be the best analyst, but without any insider information you won't make the big buck.
I liked the main idea to connect people who have ideas, but no money with people who have money, but no ideas.
Trading at CME can be profitable, but can you handle it? Betting on food prices?!
Therefore the entertainment factor is lower too... Watching sports makes a lot more fun...
You can learn to trade FOREX and make $1000 a week without too much up front capital. Once you build up a portfolio, you can increase that significantly and/or diversify into other things. I do it on the side, aiming for $500 / week over the next few months. Has been quite manageable thus far.
I will agree, potential for high returns is definitely higher in sports betting. But I will defend every day, the principle that one can generate a 20-30% return. Small caps IS like hitting the lottery, but the main difference is that there isn't a net loss. If I buy 10 small cap stocks, all I need is 4 of them to stay in business. There are people who manage small cap portfolios that make 20% plus per year. Day trading, more can be made. If you're managing your own money, with a limit of maybe 1 million dollars, 20% is extremely managable. Many traders manage hundreds of millions or even billions, making liquidation and relative profit lower. Even Warren Buffet admitted that one can make 30-50% return if they really know what they're doing and don't manage billions of dollars, which no one has anyways.
Bottom line is some gamblers are just bad they chase there losses bet with there heart and ignore the odvios have you ever bet a game and said why didn't I see that outcome it was so odvios .. Chances are you ignored your facts and bet with your heart.. I too fell into the trap during the Super Bowl .. I bet on Brady and ignored the odvios and lost .. If your a crappy investor you'll lose , if your a crappy gambler you'll lose as well , information and money management are keys to success , regardless of where you put your money , discipline is vital .. And information is free .. Learn your trade be it betting or trading and your odds of making money will increase 10 fold , I'm no stock market expert in any shape or form but I bet I can pick my share of good stocks based purely off of my desire to learn disect information ... I'll stick to my sports picks
No point in talking about what other people do and how much they make, because everyone is different. Ranogajec might suck at stocks and Buffet might suck at sports.
If you have dabbled in both invest in what is more profitable for you. Try both and do what works better for you or what you enjoy more. Or do a bit of both.
IF you have the discipline, I think sports betting is unquestionably the better investment. In addition to the discipline, you have to have a lot of heart if you are a US citizen. You're options as a US citizen if you want to make a killing are:
Not many people will want to take one of those options. But back to my first point - you have to have a ton of discipline to succeed. One of the reasons that sports betting is so dangerous is because it offers the possibility of a 5,000% return overnight. You have to be disciplined enough not to chase that return.
Don't mean to rain on the parade, but there are a few reasons why and how investing in the stock market is better than investing in sports:
1.They say that you can make 10% in the stock market, but if you know what you're doing, I mean really know what you're doing, you can diversify into many small cap stocks, an net 20-30% per year. In this respect, time must be dedicated to learning, just like with sports betting.
2. The stock market is efficient with no juice, unlike the sports betting market. If you know what you're doing and you win 50% of the time, you break even, unlike in sports betting.
3. Once you're invested in stocks, you can let it ride. Once you learn how to invest in the stock market, picking winners is a science and can be much easier still, than picking sports games. You can continue to work at a daily job without having to worry about placing bets.
4. Your investment is limitless. Sports investment is generally limited to maybe $100, 000 comfortably, while one could still invest millions in small cap stocks.
5. You only need to rely on yourself, and don't need to buy advice. This is the same as sports betting, but there is more information for free on the internet.
Feel free to discuss
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I disagree strongly that the stock market is a better investment in terms of ROI. In sports betting, a 100% annual return is perfectly feasible.
Your point about not being able to get a ton of money down is very true though.
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@Mike1212
With all due respect I believe that point number 1 is completely delusional. If you can show me one guy who can do a 30% return in the stock market, using day trading, long, short, options, bonds, anything you want really - consecutively for three years in a row, I would call you a God. The days of the 12% return being "good" is gone. Good is now 7-8%. Granted, I know brokers who are doing 15-20% through covered calls, but that's nearly half of 30%. I adamantly believe the 30% annual return in the stock market is laughable.
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I suppose. The only way I see it possible is should you buy into an IPO or some small cap mining stock and generally get lucky. When that happens percentages aren't even part of the game anymore, it's more or less like winning the lottery.
On a personal level, I'm licensed to be a broker in Canada, and I come from a family of stock brokers. I currently am not a stock broker, nor have I ever had control of my own book. Though I have worked in brokerages houses in the past. My family who currently is still active with their business has told me on many occasions that sports betting returns far outweigh anything you would ever see in the stock market. Granted, the whole principle of sports betting is closer to day trading - and requires a higher tolerance for stress at times ect. There's psychological advantages I think to being involved in the stock market, if you had to be involved in one market or the other. There's probably a bunch of others that I'm not considering as well. I suppose your ultimate upside with small cap stocks would be higher as well, because you could as I mentioned win the lottery essentially. But based on pure annual ROI per portfolio, it's not even close.
Forget the stock market... Here you are betting on losers not winners. You can be the best analyst, but without any insider information you won't make the big buck.
I liked the main idea to connect people who have ideas, but no money with people who have money, but no ideas.
Trading at CME can be profitable, but can you handle it? Betting on food prices?!
Therefore the entertainment factor is lower too... Watching sports makes a lot more fun...
No point in talking about what other people do and how much they make, because everyone is different. Ranogajec might suck at stocks and Buffet might suck at sports.
If you have dabbled in both invest in what is more profitable for you. Try both and do what works better for you or what you enjoy more. Or do a bit of both.