Applying the same investment principles as detailed in our previous article, Sports Handicapping And Money Management - Part 2, to our remaining sports picks which have a slightly lower (but still profitable) winning expectation, PRO INFO SPORTS has developed a Money Play STAR SELECTION RATING SYSTEM with corresponding "Peak Profit Percentages".
STAR SELECTION RATING SYSTEM
Money Play - PPP
7 STARS - 5%
6 1/2 STARS - 4.75%
6 STARS - 4.5%
5 1/2 STARS - 4.25%
5 STARS - 4%
4 1/2 STARS - 3.75%
4 STARS - 3.5%
3 1/2 STARS - 3.25%
3 STARS - 3%
2 1/2 STARS - 2.75%
2 STARS - 2.5%
1 1/2 STAR - 2.25%
1 STAR - 2%
On days with a very limited schedule we usually at least offer an Opinion Selection sports pick with the usual comprehensive sports handicapping information, analysis, and advice if no investment opportunities are rated high enough to be a STAR SELECTION. These are recreational wagers on marginal games; therefore, no more than 1% of current bankroll should be wagered on any such contest. Opinion Selections do not count as official PRO INFO SPORTS selections and can certainly passed on altogether.
Other "advisors", oblivious to the Peak Profit Percentage principle, contend that only 1% should ever be wagered on any game, and that anything more than that is much too risky. We simply refer them to the laws of mathematics.
For example, wagering 5% per event on the 7 STAR SELECTIONS will only be a losing proposition if their winning percentage slides down to 53%, at which point a starting bankroll of $1000 would still only be trimmed by $70 after 100 wagers. Placing 1% wagers against a starting bankroll of $1000 with a 53% winning percentage would show a profit of only $8 after 100 events. This is just not enough of a difference to warrant nothing but 1% wagers, especially considering the upside of higher winning percentages with higher percent wagers.
A winning percentage of 52.5% or less will not show a profit regardless of how small the bankroll percent wagered is, so we find that there is no overall advantage of risking just 1% on every game. This is the comprehensive and analytical manner in which PRO INFO SPORTS narrowed the recommended investment amounts for our Money Plays to 2-5% of current bankroll.
Obviously it would be most profitable for every game to rate highly enough to be a 7 STAR SELECTION and wagered accordingly; however, this is not the reality in handicapping sports. Actually, only a few opportunities are ideal enough to earn that distinction, and only playing such contests would not offer the best potential for long-term monetary gains. Profitability in sports handicapping and investing is realized through the consistent and constant compounding of modest gains, not via a high winning percentage over a few games.
One difference between the card game scenario described in our previous article (Sports Handicapping And Money Management - Part 3) and sports wagering is that while there was only one betting event at a time at the card table, there will quite often be multiple sports investment opportunities available at the same time. We'll offer a fascinating study on this in our next article, Sports Handicapping And Money Management - Part 4.
Free Money Management Download
"A positive return on sports investing is just as dependent upon rational financial administration as it is upon sports handicapping acumen."
In fact, the absence of sound money management or use of a flawed system can negate even a long-term advantage in any type of investing and result in a net loss.
Profitable money management via any potentially lucrative method requires discipline. It is critical to first establish available risk capital. This is the amount of money assigned for investing. It should never be from funds reserved for basic living expenses. It is money that if completely lost would not alter one's standard of living.
Discipline is also required in sports gaming for investing the proper amount of each wager as determined by a sound strategy and not deviating from the game plan. For maximum financial rewards, a suitable fiscal plan must be precisely planned, followed and executed.
After a thorough analysis, PRO INFO SPORTS has developed their own unique powerful money management strategy. In much the same manner as they examine potential investment opportunities, they gathered pertinent information, computed and scrutinized the data, and have taken the most logical and lucrative position.
Just as their sports handicapping opinions and expert sports picks are often "contrarian", meaning contrary to the prevailing "wisdom" of the public gambling on sports, their revolutionary money management system may be considered contrarian as well.
Of course, whether it is considered conventional or not has absolutely no bearing on its success. It is not based on emotions, biases, or misconceptions, but wholly upon cold, hard numbers.
Flat Sports Gambling Systems
Looking at specifics, there are myriad and conflicting opinions in the sports handicapping and investing industry regarding optimal wagering. Some sports handicappers to avoid endorse a flat sports gambling system wherein the same amount is wagered on each game throughout a season. Others advise wagering a set percentage of bankroll on each event. Differing perspectives on percentage investing include what the fixed percentage should be (ranging from 1 to 15%) and how often the bankroll percentage should be re-calculated.
While there is a measure of mathematical merit to some of these ideas, none solitarily go far enough in maximizing profits while also providing substantial downside risk protection. They are either too fiscally conservative, too risky, or in some cases even both.
To illustrate the latter, consider a flat amount bettor with a starting bankroll of $1000 who decides to wager $20 (2% of his starting bankroll) on each play through a season. If, due to poor sports handicapping and/or bad luck, his funds were to decline by 50% to $500, his next $20 wager would constitute 4% of his bankroll. On the other hand, if he doubled his original bankroll to $2000, his next $20 wager would only be a capital risk of 1%. Flat sports gambling systems or any such schemes that result in incrementally higher-percentage wagers the more you lose and incrementally lower-percentage wagers the more you win, quickly compound losses and diminish gains.
Simply put, it's a fiscal failure.
Percentage Sports Gambling Systems are the preferred method for professional sports handicappers and investors, and we'll cover that in our next article - Sports Handicapping And Money Management - Part 2.
Jerry Fox has sinced written about articles on various topics from Anger Control, Recreation and Sports and Fitness. Jerry Fox is the founder of and a professional sports handicapper with ProInfoSports.com. Along with offering his premium expert sports picks and. Jerry Fox's top article generates over 40500 views. to your Favourites.
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