If you are looking at passionate sports bettors, they might give you an impression like a stock trader on Wall Street. They are always up to date with the latest results of match results, teams’ forms, and players’ injuries in football leagues far away and calculate when the odds are good enough to place a bet. Many people have thought about the similarities between sports betting and trading. So how similar are the two concepts? Let’s take a look.
Professional bettors are keeping track of their bets. They keep statistics and stay to a strict budget instead of just reacting to a stomach feeling. They compare the risk of losing to the gain of winning and are not afraid to lose on one game, as long as they win enough bets to keep a positive return of investment (ROI).
They also compare the odds of different bookmakers to find the best places to put their bets. Maybe even compare different bonus options of the different bookmakers to gain the best advantages. To do this, it can be a good idea to visit a betting guide like www.betphilly.com. Here you can compare the rating of the best, licensed bookmakers in Florida and find further information about each bookmaker.
Entertainment or growth
But the similarities will end when you take a look at what you are putting your money into. There are different dynamics behind trading with foreign exchange or stocks on the one hand and sports games on the other hand.
Sports betting is based upon sports events. You predict the likelihood of an outcome of a match. Then the odds are based upon how big the bookmaker thinks, the chances of the outcome are. But here it’s important to remember the dynamics of a sports game. Ultimately sport disciplines are made for entertainment. It is made to create drama and give the underdog a reason to hope – all to keep the entertainment alive.
So, there isn’t something like a safe bet in sports betting. You can have good reasoning behind your bets, but ultimately sports betting is always risky, since half of the players on the field would actively try and obstruct your chances for winning. That’s a risk a professional investor would rarely take.
In trading, the deal is not to create excitement for investors. As an investor you want security to be able to sleep well during the night. You often want the security of a small, stable profit and you are quite well aware of when you do a high-risk bet.
As an outcome of this a big difference between betting and trading is when a bet will be considered high- and low-risk. Often low odds will be equal to high chances. With a decimal odds at 1.2, you would not expect anything else than a win from the team with such low odds. But with an ROI at 20 percent, this is quite high, and you should not expect to win every time. You should expect to lose in one out of five games.