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.